Cash is King! The old adage applies to all types of businesses at any time but specifically in times of downturn. We have been fortunate enough to ride a 10-year wave of aviation goodness only to watch it come crashing down in the last 2 months. My oh my how things have changed in such a short span. The majority of aircraft are parked, airline investment grades have dropped, finance yield demands are going straight… Read more
Corporate Social Responsibility (CSR) is a self-regulating business model that holds a company socially accountable. It incorporates the voluntary actions that companies undertake to address economic, social, and environmental impacts of its business operations to itself, its stakeholders, and the public. The European Commission defines CSR as a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. Specifically, CSR suggests that businesses identify their stakeholder groups and incorporate their… Read more
The current goal of an aerospace manufacturer is to make new aircraft and jet engines more efficient. They now use less energy and are producing less noise and lower emission levels than their predecessors. At GA Telesis – we are committed to the same goal – using less energy and becoming more efficient. We are committed to initiating projects and implementing higher standards in an effort to protect the environment by taking a leadership position… Read more
It was week one of the COVID-19 Crisis. The world around GA Telesis and me seemed to be melting down. Like many industry veterans, I have lived through downcycles in the late 1980s and 1990s, and more recently the significant shocks brought on by 9-11, SARS, the oil crisis, and the financial crisis, but none of us were prepared for what was about to come. Every time the aviation industry heads into a down cycle,… Read more
Whenever there is a hint of recession, in sectors where secured leverage is used to boost investment yields, talk about LTV (loan-to-value) tests on assets and portfolios starts to percolate. These tests, propagated by banks, are a covenant put in place to protect the lender from a drop in asset value. One fundamental problem with LTV tests is that they do not account for cashflow support generated by the underlying asset. For example, if a… Read more
Short-term sale and leaseback transactions have evolved into an enormously valuable fleet transition, management tool, and residual risk mitigation tool for airlines. Never before have short-term sale and leasebacks been more prevalent and more crucial to the success of many of the world’s airlines. Many airlines had previously planned on retiring specific narrow-body aircraft from their fleets beginning in 2019 and continuing well into the next decade. Some airlines had been counting on the cash… Read more
For many of us, this is a very exciting time of year as we celebrate the holidays with family and friends. A time when many of us take time off from work to enjoy the company of those we care about. It is also the time of year when we start to look forward to the many opportunities the new year will bring. However, this can also be a difficult time of year filled with… Read more
Inventory management places one of the largest burdens on the aviation industry. Specifically, holding a robust spare parts inventory is a major facet in fleet reliability, but also in keeping the aircraft as technologically current as possible. As airlines progress towards fleet renewals, they look to modern technology to bring new life to their operations, through technology, cost savings, and passenger experiences. However, the fleet transition is often disconnected from the elements of the operation… Read more
Read more about Inventory Leasing and the Benefits Five years ago, GA Telesis pioneered a breakthrough structure to offer airlines an alternative to inventory on its balance sheet. A quarter of a billion in transactions later – inventory leasing benefits still far outweigh the higher cost alternatives. Leasing has its perks, but with recent changes in accounting treatment, some airlines have shied away from it. However, these airlines are often looking at leasing as a… Read more
Most people think that the most stressful moment of a landing gear is when the aircraft is taking off or landing. After all, that is when passengers realize the landing gear is their only physical connection to the ground. Indeed, taking off and landing are critical to flight safety, but the most stressful time of the landing gear is during pushback from the gate. During pushback, the aircraft is fully loaded and a tug operator is pushing… Read more
