Aircraft Finance Guide 2012

2012 Edition

INSIDE:

Sponsored by DVB Bank SE

AVITAS: MARKET OVERVIEW

DVB: ON THE HISTORY ANDFINANCING OF THE 777 AND A330

VEDDER PRICE: LOWERING RISKON PRE-DELIVERY PAYMENTS

IBA: EXAMINING THE TRENDS INENGINE LEASE RATES

Finance guide 2012 cover rough 6b_Layout 1 17/08/2011 12:35 Page 1

AFG Yearbook 2012.indd 1 07/09/2011 13:52

The leading specialist in international transport finance

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2 GENERAL MARKET OVERVIEW: THE RECOVERY TAKES HOLDThe aviation industry is recovering from the downturn but recent woes have reminded us of the need to take stock, forecast and evaluate. Introducing this year’s expert analysis, Adam Pilarski, SVP at Avitas gives his overview of the market.

8 STATE OF THE NATION: LESSORS ASSESS THE MARKET Paris orders, the sale of RBS, market saturation and the introduction of Basel III — aircraft lessors have much to contend with. Mary-Anne Baldwin spoke to lessors on these and other subjects.

16 LESSOR RANKING DATAAircraft lessors’ managed portfolios ranked by estimated value.

22 PARTNERING FOR SUSTAINABLE GROWTH: HOW LESSORS, AIRLINES AND OEMS CAN WORK TOGETHER Today’s airlines understand the benefi ts that leasing can deliver yet lessors must adapt to meet airlines’ growing needs for fl exible fi nancing tools and customised solutions. Ray Sisson, president and CEO, AWAS provides his views.

28 FINANCING THE 777 FAMILYFew large aircraft programmes have enjoyed the fairytale success of the 777. Airlines commented that the 747 was “too big” or that the 767-300ER was “too small”. The 777 was welcomed as ‘just right’. Simon Finn, SVP, aviation fi nance at DVB Bank gives his detailed fi nancial analysis of the aircraft type.

36 FINANCING THE A330Next year will be the 20th anniversary of the A330’s fi rst fl ight. With a competitor and successor taking shape, now seems a good time to review the fortunes of this popular aircraft and to ask what its future holds. Simon Finn, SVP of aviation at DVB Bank investigates.

42 LOWERING RISK IN PRE-DELIVERY TRANSACTIONSThe claw-back risk is of importance to everyone involved in pre-delivery (PDP) transactions yet few understand its risk or how it might affect a transaction. Cameron Gee, shareholder at Vedder Price, de-mystifi es the claw-back risk in the US.

46 HOW THE PRICE OF OIL IS FUELLING ATM EFFICIENCYPaolo Carmassi, president of Honeywell EMEAI, explains how the price of jet fuel is making it important for airlines to adopt new ATM technologies to improve their operating effi ciency.

50 THE FUTURE OF ANCILLARY REVENUESThe US Department of Transportation (DOT) recently called for airlines to provide in-depth reports on ancillary fees. Raphael Bejar, CEO of Airsavings gives his views on the matter.

54 ECAS: A MAJOR ASSET FOR THE SALE OF ATRS ABROADFew doubt the magnitude of Export Credit Agencies (ECAs) role in fi nancing commercial aircraft throughout the last downturn, yet few mention their impact with regard to small aircraft. ATR speaks out.

58 IRELAND’S TAX ADVANTAGESIt is estimated that about €83bn ($117) worth of aircraft are managed from Ireland. Why? Because of Ireland’s extensive tax treaty network. Ailish Finnerty and Caroline Devlin, both partners at Arthur Cox, explain the reasons for Ireland’s allure.

63 DOING BUSINESS WITH CHINA: THE RISKS AND REWARDS China is a crucial aviation partner yet it is also notoriously secretive and a potential threat to the West’s aerospace sector. Are we playing with the enemy, or allowing caution to hold us back? Scott Hamilton reports.

68 ENGINE LEASING UPDATEMore engine leasing companies have entered the market and many airlines were either unwilling or unable to offl oad spare engines in the last recession. Alex Derber looks at the consequences.

74 TRENDS IN ENGINE LEASE RATESAs the market rises from the ashes of another recession it is time for the analysts to assess the damage. Dr. Stuart Hatcher, head of valuations and modelling at IBA Group plays his part in the assessment as he evaluates engine lease rates.

80 CURRENT TRENDS IN THE USED AIRCRAFT MARKETOver the years, there have been several signifi cant trends in the evolution of used aircraft dispositions. Pete Seidlitz, president of Bristol Associates, examines the changes.

86 CARGO CONVERSION: CHOOSING THE RIGHT TIME Deciding to convert passenger aircraft to freighters is an important economic move that involves several key variables. These can make ‘yes’ compelling — or ‘no’ the only option. Chris Kjelgaard reports.

92 ANATOMY OF A SUCCESSFUL NARROWBODY FREIGHTER FLEET START-UPBuilding a new freighter fleet is a complicated process. At its heart is selecting the right aircraft for the job. Kevin Casey, president of Pemco looks at some of the things cargo operators may consider when expanding their fl eet.

96 FINANCING AIRCRAFT SPARESComponent OEMs encouraged airlines to fi nance spares through costly initial provisioning (IP) programmes. That was until two things changed it. John Avery, director of supply chain services and Ian Malin, treasurer and chief investment offi ce at AJ Walter explain.

100 THE UK BRIBERY ACT: DON’T GET CAUGHT OUT In certain circumstances, payments help things happen. But the UK’s new Bribery Act will make what seems a normal course of action, an illegal one. Richard Mumford, partner and head of the dispute division at ASB Law, a specialist in aviation law, explains.

106 AIRCRAFT TRANSACTIONSFull listing of transactions for Boeing and Airbus passenger aircraft, 1H 2011

EDITORMary-Anne [email protected] WRITERSAlex [email protected] & DESIGNThe Magazine Production CompanyDean Cook [email protected] FRONT COVER DESIGNKalven [email protected] CIRCULATION MANAGER & E-EDITORPaul [email protected] INTERNATIONAL MEDIA SALES MANAGERAlan [email protected] PUBLISHER & SALES DIRECTOR Simon [email protected] GROUP PUBLISHERAnthony [email protected]

AIRCRAFT FINANCE GUIDE 2012The Aircraft Finance Guide (Print) ISSN 2044-8015 (Online) ISSN 2044-8023 is published annually in September by UBM Aviation Publications Ltd.

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1AIRCRAFT FINANCE GUIDE 2012

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2 AIRCRAFT FINANCE GUIDE 2012

AIRCRAFT FINANCE GUIDEAIRCRAFT FINANCE GUIDE

THE ECONOMIC DOWNTURN THAT BEGAN in late 2007

was, from a global perspective, the most severe downturn

since World War II. The recession was largely triggered by a

fi nancial crisis in the US that spread quickly to other advanced

economies, particularly in Europe.

World passenger traffic dropped 1.5 per cent in 2009 yet

moving into 2010, passenger traffic growth was positive

across all world regions with particularly strong results in

Asia-Pacifi c. The Middle East, Latin America and Africa had

much lower bases but year-on-year growth was good. Moving

into 2011, world revenue per kilometer (RPK) traffi c growth

is forecast at 5.2 per cent, largely due to the diffi cult year-on-

year comparisons but also due to the slightly lower forecasts of

economic growth and higher oil prices.

In order to stabilise the fi nancial industry and stave off further

economic damage, the US, UK, and several other European

countries approved bank bailout plans. Figure 2 displays

historic and forecasted GDP growth from 2007 to 2012 by major

world regions. As is shown, after a miserable 2009, positive

economic growth was estimated for all major regions in 2010

but forecasts for 2011 show slowed growth in the three major

regions of Europe, North America, and Asia.

General market overview: The recovery takes holdThe aviation industry is recovering well from the downturn, cargo fi gures have been rising since 2010, and airline profi tability is increasing. The industry’s recent woes however, have reminded us all of the need to take stock, forecast and evaluate. Introducing this year’s market analysis by the experts, Adam Pilarski, SVP at Avitas gives his general overview of the market.

Figure 1: source, ICAO and AVITAS forecasts

Figure 2: source World Bank for historic data, AVITAS forecasrs for 2011 & 2012




OIL AND AIRLINE PROFITABILITY Between 2000 and 2010, fuel accounted for between 13 and

33 per cent of an airlines’ total industry costs. The peak of

33 per cent occurred in 2008 when the price per barrel (pb)

reached $147 before subsequently falling to a low of around

$40pb in 2009 as the global recession deepened. As shown in

Figure 3, fuel prices climbed steadily from 2009 to 2010; by

the end of 2010, it was around $90pb. More recently, spot fuel

prices have measured close to $100pb due partially to unrest

in several Middle Eastern countries and differences between

the oil output fi gures of members of the Organisation of the

petroleum exporting countries (OPEC).

Figure 3 Source: US Department of Energy, June 2011.

Avitas forecasts that oil prices will remain between $80 to

$100pb for the remainder of the year. While we foresee that

in the long-term there will be signifi cantly lower oil prices,

these developments will not occur for a number of years. In

the meantime, high oil prices will have a signifi cant impact

on industry profitability. The International Air Transport

Association (IATA) estimates that each $1 increase in the

average annual fuel price leads to a $1.6bn reduction in airline

profi tability.

As shown in Figure 4, the most recent downturn is notable

not only for the level of fi nancial losses but also for its truly

global impact. While the post-9/11 downturn was primarily felt

by US carriers, this latest recession had a global reach. In both

2008 and 2009, airlines in the three most developed markets

— North America, Europe, and Asia — experienced signifi cant

losses. During 2010, the situation improved considerably with

overall industry profi tability reaching $18bn. Carriers in North

America earned a combined net profit of $4.1bn; European

airlines earned $1.9bn; and operators in the Asia- Pacifi c region

reported total net profi ts of $10bn. However, a series of events

over recent months have led most observers to signifi cantly

downgrade their outlook for 2011.

IATA considerably lowered its most recent estimates

regarding airline profitability. First published in June 2011,

IATA predicted aggregate profi ts would hit $8.6bn for the year,

however it now forecasts a much more modest $4bn. This

compares to an aggregate profi t of $18bn in 2010. The aviation

authority said that increased fuel prices, the natural disasters

in Japan and political upheaval in North Africa and the Middle

East had all combined to generate a much more negative

outlook for the industry.

Figure 4 Source: ATA, ICAO and IATA.

NARROWBODIESThe decision by Airbus to go ahead with the A320 neo — a range of new designs intended

to act as replacements for the A319, A320 and A321 — has resulted in an important

development in the commercial narrowbody jet market.

In December 2010, the manufacturer launched the A320 neo programme with entry into

service (EIS) expected in late 2015. Shortly after announcing the programme, it began

booking orders. These reached unexpectedly high levels at the Paris Air Show (PAS),

such that by the end of June 2011, total orders and commitments for the A320 neo family

surpassed 1,000.

Airbus says the aircraft option will deliver a 15 per cent fuel saving compared with

existing aircraft and will have a 95 per cent airframe commonality with existing aircraft in

the family. There will also be a choice of engines; CFM International’s (CFMI) Leap-X or

Pratt & Whitney’s (P&W) PW1100G. Airbus will also install its wingtip devices, ‘Sharklets’,

as a standard feature and will upgrade its cabin.

In July, Boeing offered to re-engine its 737 for its cash-cow customer, American Airlines (AA).

It was the fi rst time Boeing agreed to deliver a counterpart to the neo, recently announced as

the 737 Max. It was a reaction to Airbus’ attempt to win AA as its customer with a competitive

$6bn fi nancing deal.

Of further note is the development of the C919 by China’s COMAC. Aimed squarely at

the A320 and 737-800 market. The aircraft will accommodate 170 to 190 passengers and

will feature the Leap-X engine. First fl ight is scheduled for 2014 with EIS due two years

later. Orders to date have come primarily from operators in China, although COMAC has

also received a small number of commitments from GECAS and was reported to have had

discussions with Ryanair.

The Russian MS21 aircraft is also a potential competitor in that market segment. It will

be powered by the new P&W engine. Bombardier’s CSeries narrowbody aircraft is smaller,

has enjoyed modest sales and is expected to fl y in 2012.

Figure 5 Source: OAG Aviation




WIDEBODIESFollowing lengthy delays, Boeing now plans to deliver the fi rst

787 to its launch customer, ANA, in 3Q 2011 — more than

eighteen months after its first flight. The programme is far

behind schedule but with more than 800 fi rm orders booked

so far, it is already a success for the manufacturer. The aircraft

is available in two versions: the 787-800, which carries 242

passengers and the 787-900, which carries 280 passengers.

The competing product from Airbus — the A350XWB — is

scheduled to fl y for the fi rst time in 2012 with EIS the following

year. The A350 is also a success having secured almost 600 fi rm

orders to date.

The A380 has now been in commercial service for more than

three years although its orderbook remains relatively modest

and somewhat concentrated.

Boeing will deliver the fi rst 747-8F later in 2011 to its launch

operator Cargolux. The maiden fl ight of its passenger variant

occurred in March 2011 with the fi rst delivery taking place in

2012. With fi rm orders at around 100 units, the 777 freighter is

also establishing a convincing presence.

Online Aircraft ValuesRun specific aircraft values for over 35,000 commercial aircraftusing a serial number or registration, or run over 150 generic aircraft types. With an annual subscription, you have unlimited access 24/7, ensuring a quick pay back of your investment.

Key features:• Base, Current and Future Values (including Future Market Values)• Soft and Distress Values• Full-life maintenance adjustments• Custom inflation rates for values and maintenance adjustments• Serial or Registration number look up• Detailed specification adjustment options• Export to Excel • Professionally printed output

Portfolio Monitoring ServiceWith Portfolio Monitoring, it has never been easier to track and monitor your values. By using the import tool to load up to 1,500 individual aircraft into multiple folders, you are able to allocate your fleet according to your classifications (e.g., by region, aircraft type, lessee, equity vs debt, and owned vs managed). You can easily run different value scenarios and export them to Excel.

Online Engine ValuesRun maintenance-adjusted current and future engine valuesfor over 130 commercial jet engines.

Key features:• Quick selection by Manufacturer/Engine type• Differentiate between First Run and Mature engines• Bare, Partial or Full QEC options• Enter customized Overhaul and LLP information for an adjusted value• Export to Excel

Call 703.476.2300 today for a free demonstration.For more information about our online values, please visit www.AVITAS.com, email [email protected] or call +1.703.476.2300 (US), +44.173.784.3756 (UK)

Values Anywhere, Anytime at AVITAS.com

Project2_Layout 1 26/08/2011 16:15 Page 1

Figure6 Source: OAG Aviation


Online Aircraft ValuesRun specific aircraft values for over 35,000 commercial aircraftusing a serial number or registration, or run over 150 generic aircraft types. With an annual subscription, you have unlimited access 24/7, ensuring a quick pay back of your investment.

Key features:• Base, Current and Future Values (including Future Market Values)• Soft and Distress Values• Full-life maintenance adjustments• Custom inflation rates for values and maintenance adjustments• Serial or Registration number look up• Detailed specification adjustment options• Export to Excel • Professionally printed output

Portfolio Monitoring ServiceWith Portfolio Monitoring, it has never been easier to track and monitor your values. By using the import tool to load up to 1,500 individual aircraft into multiple folders, you are able to allocate your fleet according to your classifications (e.g., by region, aircraft type, lessee, equity vs debt, and owned vs managed). You can easily run different value scenarios and export them to Excel.

Online Engine ValuesRun maintenance-adjusted current and future engine valuesfor over 130 commercial jet engines.

Key features:• Quick selection by Manufacturer/Engine type• Differentiate between First Run and Mature engines• Bare, Partial or Full QEC options• Enter customized Overhaul and LLP information for an adjusted value• Export to Excel

Call 703.476.2300 today for a free demonstration.For more information about our online values, please visit www.AVITAS.com, email [email protected] or call +1.703.476.2300 (US), +44.173.784.3756 (UK)

Values Anywhere, Anytime at AVITAS.com





GE Aviation

OnPoint is GE’s consultative approach to aviation services that focuses on meeting each customer’s goals and needs. Through OnPoint, we offer fl exible solutions that lower cost of ownership and deliver world-class support with unparalleled operational excellence.

To learn more, visit www.geaviation.com/onpoint.

Tailored services with your specifi c business requirements and fi nancial needs in mind.

67416_onpoint_solns_afg_yrbk.indd 1 8/22/11 1:46 PM

REGIONAL JETSFigure 7 shows the trend in orders and deliveries for regional

jet aircraft since 1990. The two main manufacturers of 50-

seat aircraft — Bombardier and Embraer — both enjoyed

considerable success in the market in the 1990s and 2000s. In

recent years, however, the dynamics changed dramatically as

the older regional jets aged further and came towards the end

of their leases. More attention is now given to larger aircraft

in the 70 to 90 seat class and notably in addition to the two

traditional manufacturers in Russia and Japan.

Embraer followed from the success of programmes such as the

ERJ145 to develop its family of EJets. These small aircraft are

purpose built and capable of accommodating between around

70 and 120 passengers (depending on the variant). Each of

the models in the E170, E175, E190 and E195 range have an

established and signifi cant market presence — particularly the

E190 and E195, which have a substantial backlog of fi rm orders.

Similarly, Bombardier’s CRJ100 and CRJ200s remain in

widespread use, mainly by North American and European

operators, but are now falling out of favour to the advantage

of their larger siblings in the CRJ700 and CRJ900 families. The

largest version, the CRJ1000, entered commercial service in

December 2010.

From Japan, the MRJ series will offer a 70 to 80 seat and an

80 to 90 seat variant. Orders have already been secured from

ANA and Trans States Airlines with its maiden fl ight expected

to take place in 2012. The aircraft will feature Pratt & Whitney’s

PW1200G geared turbofan engines.

The Russian manufacturer Sukhoi has produced the

Superjet 100, which fl ew for the fi rst time in May 2008 with

the fi rst delivery in April 2011. This will also offer a range of

designs within the 80 to 100 seat size class and is expected

to sell well to local carriers, although it has also secured

orders in Thailand, Italy and Mexico to date. The aircraft will

feature Powerjet engines jointly built by Saturn of Russia and

SNECMA.

Finally, the Chinese manufacturer COMAC has designed the

ARJ21, an aircraft offering 70 to105 seats (depending on the

variant). The aircraft is very similar to the DC9 in terms of general

confi guration and is equipped with General Electric’s CF34-10A

engines, aimed to be a selling point to operators outside China.

However, to date, the only commitment from outside the country

has been from GECAS, which ordered fi ve units.

Overall, the commercial aviation industry appears to be on

track toward the next peak in the market cycle, which AVITAS

forecasts to occur in 2017. The peak in the economic cycle

(which typically precedes the market peak) is forecast to be in

2013. However, the recent industry recession and the global

fi nancial crisis led to a severe tightening of liquidity for aircraft

fi nancing. The volume of fi nancial support provided by export

credit agencies (ECAs) will also begin to decrease at some point.

Of further concern are political uncertainties in the Middle

East, which are contributing to rising oil prices, thus depressing

worldwide traffi c through the yield mechanism.

The next decade should bring wide changes to the operating

landscape, something that will affect aircraft manufacturers.

Bombardier and Embraer will face challenges in winning

further orders for regional jets as new players from Japan, China

and Russia are likely to have a significant impact on market

dynamics. Also, two new major widebody designs — the 787

and A350 — should be in commercial service within the next

two years and both have substantial order backlogs to be met.

Airbus has said it plans to deliver the first A320 neo in late

2015. Boeing will be close behind with its re-engine option, the

737 MAX. The aircraft will offer a seven per cent advantage

in operating costs over future competing aircraft, Boeing said.

Boeing forecasts global demand for more than 23,000 aircraft

in the 737’s market segment over the next 20 years at a value

of nearly $2trn. The 737 MAX has already won 496 orders.

Deliveries are expected to begin in 2017, two years after Airbus

rolls out its A320 neo. ■

Figure 7 Source: OAG Aviation


GE Aviation

OnPoint is GE’s consultative approach to aviation services that focuses on meeting each customer’s goals and needs. Through OnPoint, we offer fl exible solutions that lower cost of ownership and deliver world-class support with unparalleled operational excellence.

To learn more, visit www.geaviation.com/onpoint.

Tailored services with your specifi c business requirements and fi nancial needs in mind.

67416_onpoint_solns_afg_yrbk.indd 1 8/22/11 1:46 PMAFG Yearbook 2012.indd 7 07/09/2011 13:52



WE’VE CLEARED THE APEX OF the financial gale

though we’ve yet to clear all the debris and wreckage.

The used aircraft market is yet to recover fully and bank

lending has not returned to pre-crisis levels. However,

much has been tided. ILFC was nationalised, CIT Aerospace

entered and exited Chapter 11 and AerCap’s freefalling share

price has risen.

Next Royal Bank of Scotland (RBS), which is 83 per cent

owned by the UK government, is to sell its aviation arm having

waiting for the maelstrom of the downturn to clear.

But which lessor will be able to ingest a company the size

of RBS Aviation? Following the Paris Air Show in June, BOC,

GECAS and owner of AWAS, Terra Firma, announced interest

in buying the company. ICBC and HKAC are also thought

to be contenders yet Avolon has been barred from Bidding.

Norman Liu, president and CEO of GECAS, said: “It’s of a size

that you’d need pretty deep pockets. And remember that they

have an orderbook of some 100 planes, so the manufacturer

needs to be comfortable with whoever assumes those… Or

else it would be some kind of piecemeal solution – that might

make it more palatable.”

Paris orders, the sale of RBS Aviation, market saturation and the introduction of Basel III – aircraft lessors have much to contend with. New and market-leading lessors spoke to Mary-Anne Baldwin at the Paris Air Show on these and other subjects. Plus, we give you low-down on who is moving and who is losing with portfolio value data from Ascend.

State of the nation: Lessors assess the market




According to data from Ascend which ranks lessors by their

portfolio value, RBS slipped two places to fi fth place and its

combined portfolio value (comprising both stored and in

service managed aircraft) fell $173.3m year-on-year. GECAS

and ILFC are the largest lessors remaining at fi rst and second

place respectively, however ILFC’s combined value fell by

$5487.85m.

“I know our balance sheet is growing and if we didn’t sell

we’d be growing even faster,” says Liu. He adds that the

company tries to invest $6.5bn in assets each year and it must

invest $5.5bn just to stay fl at “which is an enormous amount

compared to other guys out there. The net growth is about

$1bn in rough numbers but on a portfolio of $50bn that’s not

a lot.”

Robert Martin, CEO of BOC Aviation similarly told AirFinance

Journal that BOC would consider buying the company given

the right economics. However, he told AFM at the air show:

“It’s up to the UK government… this is a nationalised bank

(RBS, parent of RBS Aviation) where the state has taken

majority shareholding, so the state must decide.” In terms of

BOC’s clout, it ranks sixth – the same as in 2010 – however its

combined portfolio value has risen by $783.7m.

Looking at other lessors that feature high in the rankings,

AerCap rose seven places to third, increasing its combined

portfolio value by $1838.4m year-on-year. CIT held its place at

fourth, and Babcock & Brown dropped two place to seven and

AWAS was up one to number eight.

Of particular note was Macquarie, which rose fi ve places to

10 and saw its portfolio value climb by $1312.45m. Boeing

Capital Corporation (BCC) dropped a signifi cant seven places

just making the top table at number 20. Its managed portfolio

value fell $503.95m.

THE NEW WAVEAs the larger lessors have been re-couping or

planning to sell, new entrants have come in to

scavenge what deals they can but according

to John Higgins, CEO of Avolon, there is room

enough for all. “I don’t think there’s been a death

of the mega-lessor [a subject talked about across

the industry] just a lot of market opportunity and

people like ourselves have been able to step in

and satisfy that market demand.”

In late June, Infi nity Aviation Capital announced

itself to the market. The new fi nance and leasing

company is a joint venture (JV) between Perella

Weinberg and three aviation industry veterans:

Richard Baudouin, co-founder of Aviation Capital

Group, and Khawer Ali and Jerrold Rosen, both

principals at KJ Aviation Services. John Higgins, CEO of Avolon




Infi nity has already acquired its fi rst three aircraft, pre-owned

737NGs, which are currently leased to a major airline. It said

in a statement that it intended to invest further in jet and

turboprop aircraft, engines and other related assets as well as

mezzanine loans.

David Schiff, Partner at Perella Weinberg, stated his reasons

for joining the new venture. “Recent disruptions in the airline

and aircraft leasing industries have resulted in significant

opportunities to provide needed liquidity and financing

solutions to airlines, leasing companies, and other owners of

aircraft and equipment.”

Despite newcomers detecting ‘signifi cant opportunities’, others

– namely established lessors – have complained that there is not

enough capacity in the market. However, the success of Avolon,

and even more so of Air Lease Corporation (ALC), proves

otherwise. ALC raised $802.5m in its initial public offering (IPO)

in April. It sold 30.3 million at $27.56, four per cent higher than

the IPO price. Avolon has raised $3bn in capital since May 2010,

ordered 12 new 737-800NGs, eight new A320s and completed

sale and leaseback and portfolio transactions for over 60 aircraft.

Its ‘base-case business plan’, says Higgins, is to build a portfolio

of about $6bn over the next two years.”

A converse criticism is that new lessors have been pricing

up the sale and leaseback market. To this, Higgins responds:

“I have the insight so I can say with certainty that we haven’t

bid up, but clearly I can’t make that information public, we’re a

private company.

What others believe is under-cutting, Higgins says is dexterous

negotiations. “When airlines award a mandate they don’t

award the mandate purely on the basis of economics… when

I sit in front of an airline we trade off a number of things; our

experience, low risk, the economics, our understanding of a

particular operator and how they like to structure a lease in a

particular way.

“I’ve heard the commentary. But we are winning a small

percentage of the deals we bid on because we are very

disciplined... We don’t want to do whatever deal is on the

market and then look back in a few years and say ‘how did

we turn out to have 50 per cent of our book in this country?”

However, he admits that when he sees a deal that fits his

portfolio the gloves may come off, chosing to be more

competitive if bidding for a deal in one region more consistent

with its portfolio build-up.”

As a lessor that has a low cost of funding, BOC Aviation has

few concerns about what it’s CEO, Martin, sees as the natural

rise of the new entrant leasing company. “When you’re a new

company you have to rush to get critical mass and we’re very

happy to help them do that, we’ll sell them aircraft with leases

attached to get them going. We sold to ALC in the early days

and to others, so we don’t see them as a threat… actually we

need new players because no one party can do the amount of

capital expenditure that is going in this cycle.”




MEETING COMMITMENTSDespite airline bankruptcies and route cuts, the top lessors have generally

kept their aircraft on lease. BOC boasts that it has not had an aircraft off

lease for fi ve years (it currently has 175 aircraft) and according to a report

written by Goldman Sachs which was released in May, only three lessors

had aircraft returned. ILFC had two of its 933 aircraft grounded when its

Indonesian customer ceased operators, however one of the two aircraft was

quickly re-leased. Other early returns included Aircastle and AerCap, which

had aircraft in the Middle East and Africa, both of which were affected by

political unrest.

“Going forward however, high fuel prices appear to be putting pressure

on ILFC’s customers. There were 17 customers fl ying 77 ILFC aircraft that

were two or more months late on their lease payments, up from 11 customers

in 1Q 2010…While competitors have been able to re-lease aircraft quickly

and for relatively little cost after accounting for security and maintenance

deposits, more distressed customers could put pressure on lease rates in the

next few quarters. ILFC had 49 scheduled lease maturities at the beginning of

2011 and 137 in 2012,” the report also said.

ILFC, a wholly-owned subsidiary of American International Group (AIG),

has so far entered into 114 lease commitments in 2011 and placed its fi rst

aircraft orders since 2007. It’s CEO, Henri Courpron said, “Airlines are

acknowledging ILFC’s fi nancial strength and the appeal of our portfolio and

order book.”

In the year-to-date, ILFC ordered 100 A320neo family aircraft and 33 737-

800s and has raised considerable fi nance. It secured a term loan facility for

$1.5bn and an unsecured bank revolver for $2bn. The company also raised

$2.25bn in unsecured public debt and tendered for $1.75bn in

bond maturities in 2012 and 2013.

ILFC is scheduled to take delivery of four new 737-800s worth

an estimated $175m this year. It’s a “light” schedule, says

Goldman Sachs’ report, and it will allow ILFC to direct more of

its cash fl ow toward debt repayment.

In a similar recent report by Goldman Sachs, this time on

AWAS, it wrote: “AWAS took a large ($292.7m) write-down to

its fl eet book value in 2009 after it concluded that the fi nancial

crisis had permanently impaired the value of much of its fl eet.

Since then, it has made relatively small adjustments to its fl eet,

and the aircraft it has sold have been at prices close to or above

book value. The current market value of the fl eet with no leases

attached is approximately $4.4bn, according to Ascend, which

is about $1.1bn or 20 per cent below the book value of $5.5bn.

We think this method of valuation probably understates the

actual value of the fl eet when leases are taken into account, and

we do not expect signifi cant write-downs in book value from

AWAS in the future.”

The report estimated AWAS’ book value as being “closer

to market value than that of some of its competitors – most

notably ILFC”. ILFC wrote down 155 aircraft by $1.5bn in 2010

and it may take up to $300m per year in further impairments.

Ascend’s valuation of AWAS’ fl eet is approximately 26 per cent

less than book value, says Goldman Sachs.




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BURGEON OR BURST: BASEL III AND THE ASUMartin admits he has renegade views on the market, as was

evident from BOC’s lack of orders during the Paris Air Show.

While orders from other lessors were mounting, Martin

asserted that the industry is in a bubble. “In 2007 we said there

was a bubble and a year later the bubble burst,” he recalls.

“We sat out and watched in 2007…we were the guys who at

the bottom of the cycle picked up $2.5bn of equipment in the

space of three months.” He plans to do this same this time.

“The reason why we’re seeing a bubble this time is the launch

of the neo but frankly how people can say what the fleet is

going to look like in eight years time when you consider what

happened in the eight years from 2001 to 2009 – I’m amazed. In

reality, these (the orders made at Paris) are just options because

people put down a very small amount on them. These planes

still need 95 per cent of their fi nancing secured.

“We believe that having gone through the bottom of the cycle

the amount of capital expenditure in dollar terms will go up

dramatically over the next three years.” He cites a number of

reasons for this, fi rstly the 787, which is soon to start delivery

after a delay of three years. Then there is the roll-out of the 747-

800 and an increase in production rates for the A320 family,

737NG family and A330 family.

He notes the disparity between this increase in capital

expenditure and the low supply of money. On the latter side he

lists the Greek crisis, the EU’s advice that European banks leave

aviation fi nancing, and the signifi cantly higher cost of export

credit pricing.

AIRCRAFT LESSOR - TOP 20 RANKING LIST

Aircraft Operating Lessor A300 A310

A320 Family A330/40 A380

737 (CFM) 737 (NG) 747 757 767 777 CRJs

ERJ 135-195 MDS Others

Combined number of aircraft

GECAS 3 S 3 IS 467 IS, 13 S 46 IS, 1 S 227 IS,

21 S397 IS,

2 S 26 IS 22 IS, 8 S 70 IS, 4 S 35 IS, 1 S 233 IS, 32 S

149 IS, 12 S 34 IS, 4 S 33 IS, 2 S 1845

ILFC 5 IS, 1 S 3 IS, 1 S 370 IS, 16 S

121 IS, 2 S 77 IS, 4 S 197 IS,

6 S 14 IS, 2 S 64 IS, 1 S 53 IS, 1 S 70 IS, 1 S 8 IS, 1 S 1017

AerCap 1 IS 153 IS, 11 S 28 IS 41 IS, 3 S 25 IS 7 IS, 2S 6 IS 2 IS 5 IS 6 IS, 1 S 291

CIT Aerospace 1 IS 122 IS, 2 S 23 IS 11 IS, 70 IS, 2 S 11 IS 8 IS 1 IS 1 IS 252

RBS Aviation Capital

118 IS, 2 S 2 IS 106 IS,

2 S 2 IS 9 IS, 4S 245

BOC Aviation 71 IS 6 IS 1 IS 64 IS 1 IS 19 IS 162Babcock & Brown Aircraft Management

I S 81 IS, 4 S 8 IS 37 IS, 11 S 111 IS 5 IS 27 IS, 1 S 6 IS, 1 S 7 IS 8 IS, 1S 309

AWAS 1 IS 49 IS, 3 S 18 IS 1 IS 52 IS, 7 S 34 IS 7 IS 7 IS 19 IS, 1 S 1 IS 11 IS, 2 S 3 IS 203

Aviation Capital Group

75 IS, 12 S 3 IS 37 IS, 9 S 76 IS, 5 S 3 IS, 3 S 7 IS, 1 S 9 IS, 5 S 5 IS 215

Macquarie AirFinance 1 IS 72 IS, 5S 9 IS 12 IS, 2 S 51 IS 1 IS 4 IS, 3 S 1 IS 4 IS 2 IS 2 IS 124

Aircastle Advisor 1 IS 25 IS, 5 S 20 IS 15 IS, 2 S 29 IS, 1 S 13 IS, 1 S 10 IS 12 IS 1 IS 1 IS 129Doric Asset Finance & Verwaltungs 6 1S 3 IS 11 IS 6 IS 26

ICBC Leasing 17 IS 8 IS 2 IS, 1 S 11 IS 9 IS 7 IS 7 IS 62MC Aviation Partners/Mitsubishi Corporation

21 IS, 1 S 8 IS 5 IS 19 IS 4 IS 17 IS 2 IS 9 IS 86

Amentum Capital 13 IS, 2 S 7 IS, 1 S 13 IS 2 IS 6 IS 1 IS 4 IS 49CDB Leasing 15 IS 14 IS 11 IS 1 IS, 4 S 3 IS 2 IS 2 IS 1 IS 54Hong Kong Aviation Capital 31 IS 12 IS 10 IS 4 IS, 1 S 2 IS 2 IS 6 IS 2 IS 70

DAE Capital 16 IS 11 IS 16 IS 5 IS 48SMFL Aircraft Capital 22 IS 5 IS 2 IS 31 IS, 1 S 2 IS 4 IS 77

Boeing Capital Corp 1 IS 17 IS, 4 S 5 IS 1 IS 32 IS 8 IS 28 IS, 1 S 101 IS, 26 S 224

“Add a large amount of excess demand for money to a

restricted supply of money, and why would you be placing

large speculative orders? It’s better to wait and fi nance this large

amount of cap-ex that’s going to come through.”

Avolon’s Higgins however, is confident that airlines and

lessors will continue to fi nd fi nancing though it may be a little

harder. Of particular impact will be Basel III, a new regulation

on the lending practises of banks, which will be gradually

introduced from 2013, and the Aircraft sector Understanding

(ASU), which from 2012 will support wider lending by

increasing the cost of export credit agencies (ECA) loans.

“I think banks will continue to be very active in lending to

both airlines and lessors because fundamentally, aircraft are

good assets. I think on the technical level of how Basel III is

implemented there might be a slight shift down in the overall

tenor of lending (to below 10 years as opposed to 12) but I’m

not expecting a shock factor from Basel III.”

Liu of GECAS says: “I don’t think spreads will get much

tighter because of Basel III and return on equity. Bank equity

levels are going up in general, which means pricing will have

to go up. They (spreads) are not going to drop that much further

because of the regulatory requirements of [the] ASU… there’s

a lot of hullabaloo about it, but I’m like, ‘it’s relatively mild’.”

The ASU will affect lessors on varying levels. GECAS for

example, relies on its parent company for funding rather than

ECA or Ex-Im support. “We tried an Ex-Im just to give it a whirl

when funding costs were different but now it doesn’t make a lot

of sense,” says Liu. However, lessors like Avolon, which hopes


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Advanced aircraft f leet solutions to the world

“We offer flexible fleet solutions to our airline customers.” Our priority is to ensure that an assortment of top-quality aircraft and engine

selections are incorporated into our fleet options. Thus, ILFC can provide the most

flexible solutions for our airline customers. We work with the airframe and engine

manufacturers to offer the best value and product support packages. Our team

always stays abreast of the latest advances in aircraft technologies.

Meet our Fleet Planning team.

ilfc.com/fleet

to secure ECA and Ex-Im fi nancing by the end of year – if only,

says Higgins to diversify its funding sources – will be affected.

But the higher cost of ECA loans should mean airlines will

step back from purchasing and towards leasing aircraft,

bringing an overall positive affect to the market. “If the market

continues to evolve the way we see it evolving I think there

will be increased demand for leasing as airlines will be

looking for alternatives to the ASU structure,” says Higgins.

“Maybe they’ll do more debt fi nancing and capital fi nancing

and I would expect the new ASU to drive demand in operating

leasing… but who knows what broader macro environment

we’ll be in. The new ASU may be a more expensive product

than the previous version but it may be that there’s high

demand for it at the time due to extraneous factors.”

“It’s very simple,” asserts BOC’s Martin. “When you put

the price of something up, the demand for it should fall but

that doesn’t seem to tie with production. Most airlines order

aircraft when they see their revenue start to go up. They don’t

think about the fi nancing side until the pre-delivery payments

start two years ahead of delivery. People haven’t considered

that the cost of fi nancing is going up.”

LESSOR RANKING BY MANAGED VALUE Aircraft operating lessor Est. value in-service aircraft [$m] Est. value stored aircraft [$m] Combined value [$m] 2010 Combined value [$m]

GECAS 34,564.60 962.35 35,526.95 34,950.21ILFC 27,168.00 695.05 27,863.05 33,350.90AerCap 6,955.35 219.8 7,175.15 5,335.75CIT Aerospace 6,623.40 81.6 6,705.00 6,272.35RBS Aviation Capital 6,369.60 108 6,477.60 6,650.90BOC Aviation 6,249.90 N/A 6,249.90 5,466.20Babcock & Brown Aircraft Management 5,756.10 149.3 5,905.40 6,027.45AWAS 4,409.60 72 4,481.60 4,156.45Aviation Capital Group 4,253.90 277.8 4,531.70 4,423.85Macquarie AirFinance 3,738.55 61.55 3,800.20 2,487.75Aircastle Advisor 3,278.65 149.35 3,428.00 3,037.90Doric Asset Finance & Verwaltungs 2,743.60 N/A 2,743.60 2,350.35ICBC Leasing 2,680.80 5.7 2,664.50 N/AMC Aviation Partners/Mitsubishi Corporation 2,571.25 21 2,592.25 2,605.90Amentum Capital 2,393.75 131.3 2,525.05 2,216.65CDB Leasing 2,268.15 48.75 2,316.90 N/AHong Kong Aviation Capital 2,177.60 19.5 2,197 2,332.00DAE Capital 2,069.25 N/A 2,069.25 1,854.70SMFL Aircraft Capital 1,991.10 23.5 2,014.60 1,625.05Boeing Capital Corp 1,984.60 272.95 2,257.55 2,761.50

According to Higgins, manufacturer’s production rates are “the key

driver of stability in the industry”. He says that despite hearing a

variety of opinions of the matter he has faith the OEMs will get it right.

“Manufacturers, through this most recent cycle, have demonstrated

ability and a discipline around production rates which wasn’t the same

in other down cycles… Whereas they make announcements – with real

intent – about increased production rates and timelines, if the market

circumstances were to change I think the manufacturers would change.”

Martin’s view however, like much of his market analysis, differs from

other lessors. “Boeing and Airbus are not necessarily looking at overall

market supply and demand, they are just doing what their shareholders

want which is to produce the maximum number of aircraft.”

“Manufacturers sell aircraft to every customer who comes to buy aircraft,

rather like selling cars… A lot of people who used to lease aircraft are now

buying them, and that’s not because they can afford them, because then

they have to go back to a lessor to do a sale and leaseback. So the dynamics

of the market are changing. We are seeing a lot of aircraft coming onto the

market to replace aircraft that are coming off their fi rst leases – so seven to

12 years old.

“Because the manufacturers didn’t cut their supply during the

downturn there has been a relative excess of aircraft coming into the

market compared to demand and at the same time we’ve had airline

consolidation with very little start-up [airline] activity… the utilisation

of aircraft has gone up and we’ve needed less aircraft. What that means is

there’s been aircraft thrown out of the market at an earlier age – short-term

unemployed if you like.”

In terms of leasing older used aircraft Higgins says: “I wouldn’t say there’s

an absence of competition in that space.” He notes that other lessors,

namely Aircastle, have stated their intent to buy older aircraft. In the case of

Aircastle, eight- to 15-years-old.

While Avolon has a particularly young fl eet, just 1.6-years-old on average,

he says the company is not averse to buying older models. “We don’t have

a binary policy of ‘we don’t do used airplanes’.” He adds that the company

has bought aircraft as old as fi ve years and because of its relationships with

airlines it has had a number of opportunities to buy more. The decision

will come down to risk adjusted returns and only after looking at the

fi nancial and maintenance risks and technological obsolescence will it

make a decision. ■


Advanced aircraft f leet solutions to the world

“We offer flexible fleet solutions to our airline customers.” Our priority is to ensure that an assortment of top-quality aircraft and engine

selections are incorporated into our fleet options. Thus, ILFC can provide the most

flexible solutions for our airline customers. We work with the airframe and engine

manufacturers to offer the best value and product support packages. Our team

always stays abreast of the latest advances in aircraft technologies.

Meet our Fleet Planning team.

ilfc.com/fleetAdvanced aircraft f leet solutions to the world




AAR Aircraft Sales & Leasing 149.25 In Service 20 1 2 1 1 1

AAR Aircraft Sales & Leasing 22.65 Stored 2 2

AELIS Group 0.95 In Service 1

AerCap 6955.35 In Service 66 7 6 2 1 153 28 5 6

AerCap 219.8 Stored 3 2 11 1

AerGlobe 12.6 In Service 3

AerGlobe 11 Stored 3

Aergo Capital 73.8 In Service 27 10

Aergo Capital 34.3 Stored 14 16

Aerolease International 81.8 In Service 4

Aerolease International 50.5 Stored 5

Aeron Aviation Corp 0.1 In Service

Aerospace Management Capital 58.8 In Service 4

Aerospace Management Capital 29.4 Stored 2

Aerostar Leasing 55.35 In Service 5 1

Aerostar Leasing 10.65 Stored 1

Aerovista 6.5 In Service 4

Air Lease Corporation 1994.55 In Service 22 1 4 22 3

Air Lease Corporation 46.8 Stored 1

Air Transport Leasing 1 In Service 1

Air Transport Leasing 4.1 Stored 1 1

Airbus Asset Management 219.75 In Service 6 8

Airbus Asset Management 20.5 Stored 4

Aircastle Advisor 3278.65 In Service 44 13 10 12 1 1 25 20 1

Aircastle Advisor 111.7 Stored 3 1 5

Aircraft Asset Management 234.35 In Service 1 7

Aircraft Asset Management 23.05 Stored 1

Aircraft Financing and Trading 12 In Service

Aircraft Financing and Trading 7 Stored

Aircraft Leasing & Management 886.9 In Service 23 2 10 8 4

Aircraft Leasing & Management 38.6 Stored 1 5 1

Aircraft Purchase Fleet 1429.55 In Service 53 10

Airfl eet Credit Corp 53.7 In Service

Airfl eet Credit Corp 67.5 Stored 3

Airlease International 1.5 In Service

Airlease International 2.05 Stored

Airline Capital Leasing 0.65 In Service 2

Airline Capital Leasing 4.7 Stored 1 1

ALAFCO & Novus Aviation 237.75 In Service 1 1 3 3 1

ALAFCO 1578.8 In Service 16 4 1 27

ALAFCO 96.95 Stored 3

Alandia Air 2.7 In Service

Alandia Air 5.7 Stored

Aldus Aviation 319.3 In Service 16

Alpstream 99.45 In Service 3

Alpstream 74.4 Stored 2

Amentum Capital 2393.75 In Service 13 2 6 13 7 1 4

Amentum Capital 131.3 Stored 2 1

Apollo Aviation Group 113.7 In Service 11 1 1 2 2 1

Apollo Aviation Group 89.7 Stored 5 3 2 2

Archway Aviation 58.1 In Service 3

ASL Aviation 254.9 In Service 5 5 15 1

Aurora Aviation Group 6.7 In Service 2

Aurora Aviation Group 4.2 Stored 1

Manager Value Status 737 747 757 767 777 A300 A310A320 Family

A330A340 A380

ATR42ATR72 CRJs ERJs MDs




Automatic 46.5 In Service 3

Avation Plc 18 In Service

Avequis 344.15 In Service 7 4

Aviaco Traders International 3.7 In Service

Aviation Capital Group 4253.9 In Service 113 3 7 75 3 9

Aviation Capital Group 277.8 Stored 14 3 1 12 5

Aviation Leasing Group 38.7 Stored 2

Avico 39 In Service 1 2

Avion Aircraft Trading 189 In Service 6

Avline 7.4 In Service

Avmax Aircraft Leasing 112.95 In Service 7

Avmax Aircraft Leasing 41 Stored 3

Avolon 550.15 In Service 1 1 11

AWAS 4409.6 In Service 86 7 7 19 1 49 19 11

AWAS 72 Stored 7 1 3 2

BAE Systems 324.9 In Service 1 1

BAE Systems 118 Stored

Banc of America 643.55 In Service 13 5 1 2 7

Bank of Communications Finance 45 In Service 2

Bavaria International 257.6 In Service 10

Bavaria International 13.2 Stored 3 1

BBAM 6321.05 In Service 148 5 27 6 7 81 8 8

BBAM 149.3 Stored 11 1 1 1 4 1

BCI Aircraft Leasing 346.8 In Service 16 4 4 3 5

BCI Aircraft Leasing 7.75 Stored 4

Bluepoint Aviation 4 In Service 1

BOC Aviation 6249.9 In Service 65 1 19 71 6

Boeing Capital Corp 1984.6 In Service 22 1 32 8 1 2 28

Boeing Capital Corp 272.95 Stored 4 1

Bombardier Capital Leasing 10.9 In Service

Brihar Corporation 5.7 In Service 1

Business Aviation Services 11.3 In Service 2

Business Aviation Services 5.65 Stored 1

Capital Aircraft 0.3 In Service

Capital Aircraft 0.2 Stored

Capital Lease Aviation 65.9 In Service 3

Cara Capital Corp 1.45 In Service 5

Cara Capital Corp 1.05 Stored 3

Cargo Aircraft Management 410.05 In Service 2 30

Cargo Aircraft Management 99 Stored 1 8

CDB Leasing Company 2268.15 In Service 11 1 3 2 16 14 2 1

CDB Leasing Company 48.75 Stored 4

Changjiang Leasing Company 149.4 In Service 4 1

China Aircraft Leasing 247.7 In Service 8

CIT Aerospace 6623.4 In Service 81 11 8 1 1 122 23 1

CIT Aerospace 81.6 Stored 2 2

CIT Leasing Corp 27.55 In Service 2

Compass Capital Corp 27.45 In Service 1 4

Compass Capital Corp 1 Stored 1

CSDS Aircraft Sales & Leasing 4.7 Stored 1

DAE Capital 2069.25 In Service 16 5 16 11

DEFAG Leasing 68.2 In Service 1

Deutsche Bank 27.5 In Service 11

Deutsche Bank 11.8 Stored 1


A330A340 A380





Deutsche Structured Finance 46 In Service 3 1 1

Deutsche Structured Finance 10.7 Stored 2

Doric Asset Finance 2743.6 In Service 6 6 3 11

Dornier Aviation 2.3 In Service

Dornier Aviation 4.6 Stored

ECC Leasing 167.7 In Service 23

ECC Leasing 110.85 Stored 12

Erik Thun 139.05 In Service 8

European Capital Corporation 0.3 Stored 2

FGL Aircraft Ireland 53.75 In Service 2 1

First Greenwich Kahala 81.5 In Service 7 1 4 10

First Greenwich Kahala 9.5 Stored 2 1

Fortis Aircraft 2.8 In Service 1

GA Finance Services 12.6 In Service 1 1

GECAS 34564.6 In Service 624 26 22 70 40 3 474 27 3 233 156 34

GECAS 962.35 Stored 23 8 4 1 3 13 1 32 12 4

GK MDT Services 22.45 In Service 4

Global Aircraft Leasing Partners 0.25 In Service 1

Global Aircraft Leasing Partners 0.25 Stored 1

Global Aviation Asset Mgmt 1046.2 In Service 17 22 3

Global Aviation Asset Mgmt 20.3 Stored 1

Global Aviation Leasing 2.75 In Service 2

Global Aviation Leasing 0.7 Stored

Global Knafaim Leasing 132.1 In Service 1 4 4 2 1 5

Global Knafaim Leasing 19.5 Stored 1

GMT Global Republic Aviation 271.25 In Service 5 11

GMT Global Republic Aviation 75.75 Stored 3 3

GOAL 598.3 In Service 2 2 1 10 6

GOAL 6.4 Stored 1

Guggenheim Aviation Partners 1089.6 In Service 7 5 17 7 4 3 6

Guggenheim Aviation Partners 28.15 Stored 1 1

Hong Kong Aviation Capital 2177.6 In Service 10 4 2 2 31 12 6

Hong Kong Aviation Capital 19.5 Stored 1

Hong Kong International 526.75 In Service 4 8

Hwa-Hsia Leasing 68.6 In Service 2 3 1

ICBC Leasing 2680.8 In Service 13 9 7 17 8 7

ICBC Leasing 5.7 Stored 1

Icelandic Aircraft Mgmt 6 In Service

Icelease 26.3 In Service 1 3

Icelease 5.6 Stored 2

ILFC 27168 In Service 274 14 64 53 70 5 3 370 121 8

ILFC 695.05 Stored 10 2 1 1 1 1 1 16 2

Intrepid Aviation Group 22.9 In Service 3

Investec Global Aircraft Fund 442.45 In Service 4 1 4 2

ITC-Leasing 0.45 In Service 2

ITC-Leasing 0.2 Stored 1

ITOCHU AeroTech 235.35 In Service 6 1 3

Jackson Square Aviation 822.8 In Service 13 1 8

Jet Trading And Leasing 41.25 In Service 1 1 3

Jet Trading And Leasing 9.3 Stored 2 3

JetFleet Management Corp 86 In Service

JetFleet Management Corp 26.95 Stored

Jetlease 2.5 In Service 1

Jetlease 2.5 Stored 1


A330A340 A380





Jetran International 12.25 In Service 2

Jetran International 55 Stored 2 1 9

Jetscape 655.87 In Service 7 2 23

Jetscape 24 Stored 1 1

JT Power 3.75 In Service 2

JT Power 16.25 Stored 3 2

KAL Aviation 1.85 In Service 10

KAL Aviation 0.5 Stored 3

KG Aircraft Leasing 5.75 In Service 1

KJ Aviation Services 29.25 In Service 5

KV Aviation 12 In Service 3

Largus Aviation 55.05 In Service 1

Lease Corporation International 920.05 In Service 2 1 2 1 7

Lionhart Aviation Limited 104.8 In Service 4

Macquarie AirFinance 3738.55 In Service 63 1 4 1 4 1 72 9 2 2

Macquarie AirFinance 61.55 Stored 2 5

Magellan Group 1.8 In Service

Magellan Group 5.9 Stored 1

Mass Lease 42.2 In Service

Mass Lease 19.8 Stored

MC Aviation /Mitsubishi 2571.25 In Service 24 4 17 2 21 8 9

MC Aviation /Mitsubishi 21 Stored 1

MCC Financial Corp 1.8 In Service

MDT (UK) 16.8 In Service 1

Midair 4.75 Stored 1

Mitsui Bussan Aerospace 249.75 In Service 4 1 5 11

MK Aviation 12.6 In Service 2

Nordic Aviation Capital 901.05 In Service 10 1 76 4

Nordic Aviation Capital 41.25 Stored 5

Northern Lights Leasing 3.5 Stored 2

Novus Aviation 330.75 In Service 4 1 3 2 1 4

Novus Aviation 10.6 Stored 2

Nuomova 31.65 In Service 8 1

Ofer Aviation 167.9 In Service 4 2

Omega Air 0.1 Stored

ORIX Aviation 1419.15 In Service 36 3 7 1 35 6 2

ORIX Aviation 31.25 Stored 4 3

Pacifi c AirFinance 38 In Service 2 5

Pacifi c Coast Group 0.7 In Service

Palm Aviation 7 Stored

Pearl Aircraft Corporation 2.5 Stored 1

Pembroke Group 1899.9 In Service 22 2 8 13 4 2 1

Pembroke Group 21.2 Stored 1

Pembroke & Aircraft Financing 6.7 In Service

Pembroke & Aircraft Financing 10.2 Stored

Penerbangan Malaysia Berhad 946.5 In Service 17 12 4 1 9

Phoenix Aircraft Leasing 32.7 In Service 2 2 1

Phoenix Aircraft Leasing 4.8 Stored 1 2

Plane Business 6.2 In Service 1

Power Aircraft Services 4.25 In Service 1

Power Aircraft Services 2 Stored 2

Q Aviation 309.55 In Service 3 2 3 4 4

RAK Leasing 0.5 Stored 1

Raytheon Aircraft Credit 43.3 In Service


A330A340 A380





FINANCING THE WORLD'S FLEET, ONE AIRLINE AT A TIMEOver $3 billion of committed aircraft purchases since 2010

Jackson Square Aviation is one of the world's fastest growing privately-held aviation capital provider, with a fleet of over 70 new and committed next generation aircaft, serving multiple airlines throughout the world.

Operating leases · Finance leasesEngine finance · Pre-delivery payments

Acquisition of three Boeing 737-800’s

Sale/leaseback of two 2010 Airbus A319-100’s

Sale/leaseback of two 2011 Boeing 737-800 deliveries

Sale/leaseback of five 2011 Boeing 737-800 deliveries

Sale/leaseback of three 2011 Airbus A320-200 deliveries with PDP funding

Sale/leaseback of four Boeing 737-800 deliveries and one 2008 Airbus 319-100

Sale/leaseback of one 2010 Airbus A320-200 delivery and one 2010 A319-100 delivery

PDP funding of four 2011 Airbus A320-200 deliveries and sale/ leaseback of two 2008 Airbus A319-100’s

Sale/leaseback of one 2011 Boeing 777-300ER delivery and three 2011 Airbus A320-200 deliveries

Sale/leaseback of two 2011 Airbus A330-300 deliveries

Sale/leaseback of seven 2011-2012 Airbus A320-200 deliveries with PDP funding

Sale/leaseback of three 2011 Boeing B777-300ER deliveries

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JSA_Update_PrintAd_July2011_Update_Final_UBM.pdf 7/11/11 5:16:13 PM

Raytheon Aircraft Credit 16.65 Stored

RBS Aviation Capital 6369.6 In Service 106 118 2 2 9

RBS Aviation Capital 187.15 Stored 2 2 4

Regional Aviation 0.8 Stored 1

Regional One 7.5 In Service 3

Regional One 11.55 Stored

Rockton Management 4.4 In Service 1

RPK Capital Management 44.2 In Service 3 2 1 3

Runway Asset Management 5.95 In Service 6

Runway Asset Management 1.9 Stored 2

Saab Aircraft Leasing 196.1 In Service

Saab Aircraft Leasing 50.15 Stored

Sahaab Leasing 318.25 In Service 11

Santos Dumont Aircraft Mgmt 506.35 In Service 11 1 2 2

Santos Dumont Aircraft Mgmt 19 Stored 1

Sberbank Leasing 74.35 In Service 6 1

Sberbank Leasing 67.5 Stored 2

Sean Ho Aircraft Leasing 40.2 In Service 2

Showa Leasing 453.75 In Service 2 7 10 1 5

Sigma Aircraft Management 18 In Service 4

Sky Holding 492.15 In Service 5 1 14 4 1 10 12

Sky Holding 77.4 Stored 17 4 2 7

Skytech-AIC 116.7 In Service 2

SkyWorks Leasing 1159.45 In Service 5 4 33 10 19 5 32

SkyWorks Leasing 137 Stored 1 4 20

SMFL Aircraft Capital 1991.1 In Service 33 2 32 5 4

SMFL Aircraft Capital 23.5 Stored 1

Sojitz Aircraft Leasing 109.3 In Service 11

Sojitz Aircraft Leasing 11.8 Stored 1

Sumitomo Mitsui 425.7 In Service 1 1 8 1 2

Sverigefl yg Leasing 5.7 In Service

TAT Leasing Services 175.35 In Service 16

Ten Forty Corp 2 In Service

The Essence Group 5.4 In Service

The Flightstar Group 1 Stored 2

Tiger Aircraft Trading 34.7 Stored 17

Titan Aviation Leasing 14.15 In Service 1

Unconfi rmed 505.5 In Service 8 1 10 1 1

Universal Asset Management 71 In Service 1 4 6

Universal Asset Management 85.35 Stored 5 4 7

VEB-Leasing 306.15 In Service 1 3 2 4

Veling 371.9 In Service 6 3 4 2

Vietnam Aircraft Leasing 83.5 In Service 5

Volito Aviation Services 584.8 In Service 15 2 27 1

Volito Aviation Services 7.9 Stored 1 1

VTB-Leasing 467 In Service 12 3 5 3 9 2

Vx Capital Partners 155.05 In Service 2 10 2 9

Vx Capital Partners 4.6 Stored 1

Waha Leasing 45 In Service 2

Waha Leasing 2.75 Stored 1

World Star Aviation 84.5 In Service 20 2 2 1 1

Wor ld Star Aviation 35.6 Stored 19 2 2 1


A330A340 A380



FINANCING THE WORLD'S FLEET, ONE AIRLINE AT A TIMEOver $3 billion of committed aircraft purchases since 2010

Jackson Square Aviation is one of the world's fastest growing privately-held aviation capital provider, with a fleet of over 70 new and committed next generation aircaft, serving multiple airlines throughout the world.

Operating leases · Finance leasesEngine finance · Pre-delivery payments

Acquisition of three Boeing 737-800’s

Sale/leaseback of two 2010 Airbus A319-100’s

Sale/leaseback of two 2011 Boeing 737-800 deliveries

Sale/leaseback of five 2011 Boeing 737-800 deliveries

Sale/leaseback of three 2011 Airbus A320-200 deliveries with PDP funding

Sale/leaseback of four Boeing 737-800 deliveries and one 2008 Airbus 319-100

Sale/leaseback of one 2010 Airbus A320-200 delivery and one 2010 A319-100 delivery

PDP funding of four 2011 Airbus A320-200 deliveries and sale/ leaseback of two 2008 Airbus A319-100’s

Sale/leaseback of one 2011 Boeing 777-300ER delivery and three 2011 Airbus A320-200 deliveries

Sale/leaseback of two 2011 Airbus A330-300 deliveries

Sale/leaseback of seven 2011-2012 Airbus A320-200 deliveries with PDP funding

Sale/leaseback of three 2011 Boeing B777-300ER deliveries

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JSA_Update_PrintAd_July2011_Update_Final_UBM.pdf 7/11/11 5:16:13 PM


Partnering for sustainable growth: How lessors, airlines and OEMs can work together



Today’s airlines understand the benefi ts and options that leasing can deliver. Whether it is to provide fl eet fl exibility, fi nancial portfolio management, or to hedge against technical obsolescence, leasing is a strong part of an operator’s toolbox. Yet in order to meet airlines’ growing needs for fl exible fi nancing tools and customised solutions, lessors must adapt to offer a fuller range of services. Ray Sisson, president and CEO, AWAS provides his views.

sustainable growth: How lessors, airlines and OEMs can work together




THE AVIATION INDUSTRY IS DYNAMIC and always

evolving. Airlines, for example, have evolved from the

core fl ag carriers and regionals of the past, into mega-merged

global players, budget carriers, and hybrid airlines, all of

which are expanding rapidly from their continental roots.

The method by which airlines acquire aircraft has also

evolved. Today approximately 40 per cent of the world’s

active commercial fl eet is leased and it is estimated that the

fi gure will grow to over 45 per cent by 2015 and almost 48

per cent by 2020. Manufacturers project that in order to meet

demand the world’s fl eet will need to double by 2030. As

such, the importance of leasing has never been so great.

LEASING AS A GROWTH TOOLThe global economy has returned to a phase of

moderate but steady growth, now airlines and

lessors must evolve so that they are better able to

handle inevitable market shocks and to optimise

their business models for long-term profi tability.

Leasing has also become more popular because of myriad

post-recession policies that have significantly restricted

airlines’ access to more traditional funding sources –

such as the capital markets and bank financing. Basel III

requirements and the tightening of Export Bank credit

further impact on this issue.

In a progressive relationship a lessor assists a customer with its fl eet renewal by re-deploying assets that are no longer optimal to its needs… But in order to accomplish this, a lessor must have the scale, reach and relationships to be able to shuffl e or grow a portfolio.

THE AVIATION INDUSTRY IS DYNAMIC THE AVIATION INDUSTRY IS DYNAMIC T and always

evolving. Airlines, for example, have evolved from the Tevolving. Airlines, for example, have evolved from the Tcore fl ag carriers and regionals of the past, into mega-merged

global players, budget carriers, and hybrid airlines, all of

which are expanding rapidly from their continental roots.

The method by which airlines acquire aircraft has also

evolved. Today approximately 40 per cent of the world’s

active commercial fl eet is leased and it is estimated that the

fi gure will grow to over 45 per cent by 2015 and almost 48

per cent by 2020. Manufacturers project that in order to meet

demand the world’s fl eet will need to double by 2030. As

such, the importance of leasing has never been so great.

LEASING AS A GROWTH TOOLThe global economy has returned to a phase of

moderate but steady growth, now airlines and

lessors must evolve so that they are better able to

handle inevitable market shocks and to optimise

their business models for long-term profi tability.

Leasing has also become more popular because of myriad

post-recession policies that have significantly restricted

airlines’ access to more traditional funding sources –

such as the capital markets and bank financing. Basel III

requirements and the tightening of Export Bank credit

further impact on this issue.




Lufthansa Technik’s Aircraft Leasing and Trading Support (ALTS) is the fast, professional service that takes over when a leased aircraft changes operators. We handle the full spectrum of checks and modification work, including design, cabin furnishings and repainting — all the way up to the necessary inspections and approvals. In short, we take care of all the technical and administrative tasks of aircraft leasing for you, whether you’re the lessor or the lessee. Let’s talk about it!

Lufthansa Technik AG, Marketing & SalesE-mail: [email protected]/leasingCall us: +49-40-5070-5553

The shortest distance between two owners? Ask us.

More mobility for the world

239_210x278_LeasingLack_AircratFinanceGuide_ICv2_RZ01.indd 1 03.08.2011 11:09:53 UhrLufthansa Technik 0911.indd 1 18/08/2011 16:14

We often talk to our customers

about their fleets, work to

understand their unique operation

and develop long-term relationships

so that we can meet their needs and

anticipate their future requirements.

Customers tell us that they believe

their fleets should be a balanced

mix of leased and owned assets

with a percentage customised to meet the specifi c model of an

individual organisation.

An example of this type of progressive relationship is when a

lessor assists a customer with its fl eet renewal by re-deploying

assets that are no longer optimal to its needs. The asset is

handed to another more suitable customer and the former is

supplied with an asset more in keeping with its needs. But in

order to accomplish this, a lessor must have the scale, reach

and relationships to be able to shuffl e or grow a portfolio.

Another tool for airlines is the sale and leaseback model.

This is growing in importance as many customers have

placed signifi cant pipeline orders for newer more fuel-effi cent

aircraft. With fuel cost being the single greatest operating

drain on an airline’s bottom-line, access to modern aircraft

that can reduce fuel-burn by 10 to 25 per cent is critical to

sustained profi tability.

DRIVE FOR NEXT GEN TECHNOLOGIESAirlines have seen the future and they have responded

by ordering a part of it. These orders promise to deliver

significantly lower operating and maintenance costs and

enhance fleet performance. The combination of next

generation airframes and new engine options are critical to

improving airlines’ operational effi ciency as well as providing

signifi cant environmental benefi ts.

A mass of new assets will enter the market leaving the older

ones to be re-deployed. Airlines will need lessors to provide

creative solutions to manage their fl eet renewal programmes

and the fi nancing of new aircraft – and sale and leasebacks will

play a pivotal role in this.

However, many of these aircraft will not be delivered until

two to five years time, perhaps longer – and that is just for

existing orders. A large number of airlines are still looking

to upgrade and replace airframes of 20-years or older that

have become ineffi cient or are deemed unsuitable for further

investment due to low book values.

Airlines require aircraft that can be delivered in the near-term

and can still offer a 10 to 20 per cent operational benefi t versus

the aircraft they replace. By having a pipeline of efficient,

modern aircraft available, lessors can provide more immediate

solutions to customers who may not have delivery slots for

some time to come.

Ray Sisson, president and CEO, AWAS


Lufthansa Technik’s Aircraft Leasing and Trading Support (ALTS) is the fast, professional service that takes over when a leased aircraft changes operators. We handle the full spectrum of checks and modification work, including design, cabin furnishings and repainting — all the way up to the necessary inspections and approvals. In short, we take care of all the technical and administrative tasks of aircraft leasing for you, whether you’re the lessor or the lessee. Let’s talk about it!

Lufthansa Technik AG, Marketing & SalesE-mail: [email protected]/leasingCall us: +49-40-5070-5553

The shortest distance between two owners? Ask us.

More mobility for the world

239_210x278_LeasingLack_AircratFinanceGuide_ICv2_RZ01.indd 1 03.08.2011 11:09:53 UhrLufthansa Technik 0911.indd 1 18/08/2011 16:14AFG Yearbook 2012.indd 25 07/09/2011 13:53



The goal should always be to provide flexible access to

the right technology. Another way to do this is for lessors to

collaborate with the manufacturer to jointly evaluate and create

a customised package for the customer. The manufacturers

have a unique set of tools at their disposal, which when

combined with a lessor’s services can deliver a more potent and

effective overall solution.

There is also a great opportunity for lessors and OEMs to work

more closely on airframe development. A lessor has a unique

perspective on what the customer wants and how fl eets evolve

over time. Together, we can help optimise a programme that

will be successful today and for many years to come.

UNDERSTANDING THE METALProviding a fl exible fi nancing option is critical but a lessor’s

ability to understand the aircraft, provide technical expertise

and consultation to an airline will be of even greater importance

as fleets expand and house new technologies. We are often

asked to partner with our customers to evaluate potential

options, appraise current aircraft performance and plan for fl eet

modernisation. A lessor’s ability to provide this level of value-

added service can determine the depth of a relationship as well

as the quality of the solutions it can deliver.

We work with the airline to seamlessly customise new aircraft

for delivery and to reconfi gure and upgrade modern aircraft for

its next mission. The result is a better aircraft for the customer

and an asset that delivers optimal value over its lifetime.

We need to optimise the current marketplace conditions and

create partnerships that contribute to an airline’s bottom line.

Furthermore, we need long-term plans. The industry has stood

resilient against three decades of violent shocks including four

recessions, two fi nancial crises, two Gulf Wars and fl uctuating

oil prices. We have learnt important lessons but we must build

these into our long-term plans if we are to protect ourselves

from further shock.

This is an extremely important period for the aviation

industry. The International Monetary Fund (IMF) forecasts

global growth at 4.3 per cent this year with BRIC nations

running at approximately twice this projection. Airlines

and lessors need each other more than ever. Emergence from

financial crises, a return to global growth and the advent of

game-changing technologies all lie ahead. Together, we must

seize the opportunities for growth and profi tability. ■

The goal should always be to provide fl exible access to the right technology. A way to do this is for lessors to collaborate with the manufacturer to jointly evaluate and create a customised package for the customer. The manufacturers have a unique set of tools at their disposal, which when combined with a lessor’s services can deliver a more potent and effective overall solution.

By delivering double-digit fuel burn savings, Pratt & Whitney PurePower Engines provide next-generation benefits today. With up to 20% lower operating costs, half the noise and dramatically reduced emissions, these proven, dependable engines save operators up to $1.5 million per aircraft per year. Discover real engines that are Flight Years Ahead™. At PurePowerEngines.com.

In reality, the PurePower® Engine already does.Get the free app athttp://gettag.mobi

Client: Pratt & Whitney Commercial EnginesAd Title: Pure Power Engine Already Does - BlueprintPublication: Aircraft Finance GuideTrim: 210 mm x 278 mm • Bleed: 216 mm x 284 mm

It’s in our power.™

PurePower_Blueprint_AircraftFinanceGuide.indd 1 8/17/11 1:32 PM


By delivering double-digit fuel burn savings, Pratt & Whitney PurePower Engines provide next-generation benefits today. With up to 20% lower operating costs, half the noise and dramatically reduced emissions, these proven, dependable engines save operators up to $1.5 million per aircraft per year. Discover real engines that are Flight Years Ahead™. At PurePowerEngines.com.

In reality, the PurePower® Engine already does.Get the free app athttp://gettag.mobi

Client: Pratt & Whitney Commercial EnginesAd Title: Pure Power Engine Already Does - BlueprintPublication: Aircraft Finance GuideTrim: 210 mm x 278 mm • Bleed: 216 mm x 284 mm

It’s in our power.™

PurePower_Blueprint_AircraftFinanceGuide.indd 1 8/17/11 1:32 PM




FOR FINANCIERS OF COMMERCIAL AIRCRAFT, there

are important differences between financing smaller,

more prolifi c aircraft - such as the 737 or A320 Family - and

larger, more expensive aircraft – like the A330, A340, A380,

747, 767, 787 and 777. The majority of airline routes are

served using smaller jets as passengers are typically airborne

for under two hours. Also, schedules are built around a

frequency of service primarily designed to appeal to the

business traveller, which dictates the use of smaller aircraft

so load factors remain high enough to generate satisfactory

yields. A notable exception is when serving high densities of

traffi c between two major destinations. Such city-pairs are

best served using widebodied aircraft.

The costs associated with large aircraft make them suitable

mostly to the top-tier airline operators with commensurately

better fi nances. Consequently, the quality of the operator base

for widebodied aircraft tends to be less variable than it is for

single-aisles.

Ascend indicates that there are around 1,600 operators of

today’s 22,700 commercial aircraft. While over 17,000 are

single-aisles operated by more than 1,400 operators, there

are only 5,000 widebodied aircraft flown by fewer than

500 operators. Once subdivided by aircraft size, one might

reasonably conclude that the market for widebodied aircraft

is considerably less liquid as there are fewer remarketing

opportunities.

The principal risk of fi nancing such aircraft is that a default

may occur. IATA believes that airlines worldwide lost $9.9bn in

2009, made $16bn in 2010, and will see this reduced to around

$8.6bn in 2011. As a result, it is generally perceived that the risk

Few large aircraft programmes have enjoyed the fairytale success of the 777. Over time, various airlines commented that the 747 was “too big” or that the 767-300ER was “too small” — so in the late 1980s, the industry welcomed the prospect of a new aircraft type that was — in true Goldilocks fashion — just right. But fi nding favour from airlines is not enough — it must win over the fi nancial and investment community if it is to command good liquidity and value in the market. Simon Finn, SVP, aviation fi nance at DVB Bank gives his detailed fi nancial analysis of the aircraft type.

Financing the 777 FamilyFew large aircraft programmes have enjoyed the fairytale success of the 777. Over time, various airlines commented that the 747 was “too big” or that the 767-300ER was “too small” — so in the late 1980s, the industry welcomed the prospect of a new aircraft type that was — in true Goldilocks fashion — just right. But fi nding favour from airlines is not enough — it must win over the fi nancial and investment community if it is to command good liquidity and value in the market. Simon Finn, SVP, aviation fi nance at DVB Bank gives his detailed fi nancial analysis of the aircraft type.

Financing the 777 Family




of airline default has diminished compared to two years ago.

It can be argued that widebodied aircraft operators have

increasingly better credit, meaning there is less chance of

default and more stability in aircraft values. However, the high

capital cost, high transition costs and reduced remarketing

opportunities associated with widebodied aircraft suggest

that the severity of any default would be much greater for a

single-aisle type. Appraisers’ base and market values implicitly

assume an aircraft in half-life maintenance condition is ‘market-

ready’, but it is important that fi nanciers and investors do not

underestimate the up-front costs of maintenance and cabin

reconfi guration required to achieve this ‘market-ready’ status.

The value of the aircraft is one thing, but the value to the

seller may slide by many millions of dollars because of these

transition costs.

COMPETITIVE POSITIONThe 777 would become remarkable for being the fi rst twin-

engine aircraft capable of serving routes over 7,000nm.

However, Boeing had to compete with two major aircraft

manufacturers — Airbus and McDonnell Douglas. All

manufacturers believed the market needed an aircraft capable

of seating around 300 passengers in three classes to replace

and expand the market at that point served by the ageing DC-

10 and L-1011 tri-jet.

Entering service in 1990, the MD-11 was the fi rst replacement.

The MD-11 was essentially a stretched DC-10 derivative to

which McDonnell-Douglas incorporated the newest systems

technology and employed the popular General Electric (GE)

CF6-80C2 and Pratt & Whitney (P&W) PW4000-94 engines.

MD-11 tri-jets were aimed squarely at the long-range widebody

market and were marketed as being capable of seating close to

300 passengers in three classes.

Airbus took a different approach, splitting the market into

long-range and regional widebody offerings. The result was

the A330-300 and A340, which shared the same fuselage cross-

section as the preceding A300/A310 Family of widebodies.

However, wing, systems and engines were all new, giving the

new aircraft the range and effi ciency required to enter the new

market segment with the MD-11.

Airbus believed that twin-jet economics suited widebodies for

fl ights that averaged 3,000 -4,000nm, a surprising conclusion

given the consortium’s A300/A310 development history. For

the long-range market, Airbus selected a traditional four-engine

solution. Hindsight suggests that this was not the optimal

decision but, it is easy to forget that airlines and regulators were

unconvinced by the use of twin engine aircraft for long-range

fl ights. Also, by choosing the CFM56-5C to power the A340,

Airbus believed it had calculated a weight advantage over the

twin-engine solution. However, the A340’s climb performance

and cruise speed would eventually prove to be a competitive

disadvantage and four-engine maintenance costs would also

have their effect on the aircraft’s operating economics.




Although Boeing’s board had authorised the 777 programme

in 1989, the competing aircraft had entered service while

Boeing was still determining the design. Boeing had planned

to deliver two variants of the initial 777 series, followed by

a longer-range development. The first of the two variants

was to supply what Boeing called the ‘A-market’ and would

replace DC-10-10 and L-1011-1 aircraft, as well as satisfy

growth demand. The ‘B-market’ demand would be for an

A340 competitor in the long-range market. In the early 1990s,

Boeing had already spoken publicly on the possibility of

stretching its A-market aircraft for its Asian customers. Unlike

the competitors, the 777 would be an all-new design — new

fuselage, new wings (offered with a folding wingtip option

never selected by the airlines), new GE, P&W, and Rolls-Royce

powerplants and Boeing’s first commercial implementation

of a fl y-by-wire fl ight control system. These features and the

essential certifi cation for Extended Twin Engine Operations

(ETOPS) would make the 777 an expensive development

programme but ultimately these decisions would reward

Boeing with strong overall market share.

There is further competition. Airbus offers the A350XWB

type. The -900 series will offer long-range capability for 314

passengers and the -1000 version will be smaller than the

largest 777 series aircraft but with arguably better economics.

Boeing has postulated another 787 series called the -10, which

would be approximately the same size as the 777-200 Series

and might also therefore, bleed market share away from the

777. In fact, given the considerable effi ciencies of the new 787,

even the smaller 787-9 may offer seat-mile costs that make it a

competitor to the 777-200ER.

THE 777-200The 777-200A was the original name for the

A-market 777 offering, now known as the 777-

200. It entered commercial service with United

Airlines in June 1995. Boeing marketed this

initial offering with either two-class seating for

375 passengers or three-class seating for 305

passengers. A variety of weight schedules was

developed with the lowest schedule offering a

maximum take-off weight (MTOW) of 506,000lb

for a range of 4,100nm and the highest MTOW of

535,000lb giving a range of up to 5,210nm.

Other customers for the -200 included Air

China, All Nippon, British Airways, Cathay

Pacifi c, China Southern, Emirates, JAL and Thai

Airways International. While these customers still

retain many of their original aircraft more airlines

feature in the operator list due to secondary

market sales of aircraft originally delivered to

British Airways and United. Afrijet, Air India and

Transaero were all added to the operator list in

this way.

To date, relatively few 777-200 aircraft have been

remarketed – a process that is further complicated

by Boeing’s decision to offer engines from all three

major manufacturers on the initial 777 Family.

The fl eet of just 87 777-200 aircraft with only 12

operators would be a tough remarketing prospect

but as operators of one original equipment

manufacturers’ (OEM) engines are usually




unwilling to accommodate the expense of introducing a second

OEM’s product, sellers are left targeting an A-market that is split

between the three OEMs, not all of which operates the same

engine type. Otherwise, they may try to expand the operator

base by attracting a new operator.

Table 1 shows key market data for the various combinations

of engine manufacturers and airframes that compete in this

market. The statistics indicate that the 777-200 has proven

unpopular versus the dominant A330-300. The average age

of the 777-200 fl eet is almost twice that of the A330s and the

younger average fl eet age of the A330 indicates its sustained

demand. Additionally, no version of the A-market 777-200 has

achieved more than 10 operators while the operator base for the

Rolls-Royce-powered A330-300 offers much better remarketing

prospects. However, one should note that All Nippon, Japan

Airlines and United each have concentrations of the PW-

powered 777-200s.

Within the scope of a wider aircraft production programme,

aircraft of this seat-capacity and range play a key role for a

small number of airlines, particularly those in Asia. However,

the low volume of sales in this segment led Boeing to consider

it a niche market. The 777-200, with its minority share of the

segment, has generally failed to attract the favour of either the

operating lease companies or the asset-based lenders. While

not typical, the 2006 retirement of a 1995 vintage A-market

777-200 has also caused concern over the assumed useful

economic life of the 777-200. Some appraisers recorded big

market value changes for the 777-200. The weak market for

this original version of the 777 seems to be refl ected in the

volatility of its value.

Table 1




777-200ERBoeing’s 777-200 Increased Gross Weight (IGW) was envisaged

to serve the B-market and offer competition against the A340-

300 and MD-11. If the design choices for the 777 may have

hindered its success in the A-market against the mid-range

A330-300, the all-new wing, engines and fuselage seemed

to lend a long-term advantage to the 777 once the long-range

markets were the target.

Boeing presented an aircraft capable of seating 301 passengers

in three classes. The IGW variants featured MTOWs ranging

from 580,000lb - 632,500lb with corresponding variation in

range from around 5,800nm - 7,300nm. Later developments

of the 777 wing and structure led to further evolution of the

weight schedules, until an ultimate MTOW of 656,000lb was

offered, extending the range of the aircraft to over 7,700nm.

Boeing subsequently renamed all versions of the 777-200

featuring an MTOW of 580,000lb or more as the 777-200

Extended Range (ER). This enormous variation of weights and

capabilities highlights the fl exibility of the 777 aircraft design.

The new weights also demanded more powerful engines to

facilitate runway and aircraft climb-out performance.

The 777-200ER entered service with British Airways in

February 1997 and went on to attract orders from a variety of

airlines. Air France, Continental, Japan Airlines and KLM all

ordered the GE90-powered versions. All Nippon, Asiana,

Korean and United Airlines preferred their aircraft powered

by the PW4000-112, while American Airlines, Delta, Emirates

and Singapore Airlines chose aircraft powered by Rolls-

Royce’s Trent 800. Today, with most orders for the 777-200ER

seemingly placed, Rolls-Royce appears to have won the engine

OEM market share battle from GE, with P&W having the

smallest share. Operating lessors were more confi dent of 777-

200ER liquidity and BOC Aviation, GECAS and ILFC have all

ordered the type over the course of its programme.

While Table 2 shows the position of all modern types

deemed to be in direct competition with the 777-200ER, it

should be remembered that market acceptance of all types is

also being affected by orders that are gathering for the new

advanced technology A350XWB-900 (229), 787-9 (208) and

perhaps in time, the 787-10. The latest version of the 777-200

Series — the 777-200LR (Long-range) — features the same

seat capacity as the 777-200ER and arguably also dilutes

demand for the -200ER.

Very few MD-11 passenger aircraft are listed in the table

above, as following the merger of McDonnell Douglas and

Boeing, operators lost confi dence in the type and market values

collapsed. The majority of the MD-11 fl eet was converted to

freighters. From DVB’s perspective, passenger configured

MD-11s are the least liquid of the types shown. For all their

effi ciency and fl exibility, 777-200ER aircraft remarketing suffers

from the decision to offer a tri-source engine supply from

each of the major manufacturers. This disadvantage must be

weighed against the greater popularity and perceived effi ciency

of the 777-200ER fl eet, of which few are stored and for which a

small order backlog still exists.

Many banks have withdrawn from the sector and many that

remain prefer to contemplate business on a credit basis. In

better times, an asset-based lender would prefer to finance

the 777-200ER than the A340-300, as many Airbus operators

are thought to be examining fleet replacement plans. With

fuel prices escalating, the economics of the 777-200ER make

it less vulnerable to early retirement. Clearly, some care over

the airframe-engine combination is advisable as there are so

few operators. This will present something of a challenge for

remarketing. Avoiding too much exposure to a single operator’s

large fl eet is desirable.

THE 777-300In March 1993, Boeing was rumoured to be in talks with

Cathay Pacifi c to switch some of its orders from the shorter

A-market 777-200 to a new larger or stretched 777. Boeing was

thought to have held further discussions with ANA, JAL and

Thai Airways International. The talks resulted in the launch of

the 777-300 Series featuring a fuselage stretch that increased

the marketed three-class seating capacity to 368 passengers or

451 passengers in a two-class layout. A commensurate increase

in belly hold cargo also came, which pushed the maximum

optional MTOW to 660,000lb giving the -300 a range of just

over 6,000nm. As with the shorter -200 Series, all three engine

OEMs offered power for the 777-300 but, airlines selected only

the PW4098 and Trent 895, deeming the GE90 unsuitable.

The precedents for high-capacity regional aircraft are mostly

from the Asian market. It was unlikely that the 777-300

would attract broad market acceptance, nor did it. Today,

just seven airlines (all operating into Asia) carry the small

global population of 60 777-300s. Ascend data shows that

ILFC, BOC Aviation and Pembroke collectively own 11

Rolls-Royce powered 777-300 aircraft. While the specifics

of the transactions are not known, it is unlikely that there is

signifi cant residual value risk for the lessors who, rather like

a bank, are likely to rely on the credit of the lessee and the

integrity of the long-term lease revenue.

The 777-300 is unusually diffi cult for its small operator base

to replace. The niche nature of high-capacity regional services

does not encourage manufacturers to build aircraft specifi cally

Table 2




for such range and ‘misusing’ long-range aircraft is theoretically

unattractive as operating costs are sub-optimal for the airlines.

While harbouring no illusions regarding the liquidity or

resale value of the 777-300 fl eet, it seems the aircraft remains

fi nanceable largely due to its airline operators. Without this, the

aircraft would rely on its asset characteristics alone and as the

market indicates, these are not suffi cient to qualify the 777-300

for pure asset-based fi nance. Finally, while it has been possible

to compare other 777s with competitors on the basis of relative

seat-mile costs, comparable seat capacity and range capability,

when measured in this way, the 777-300 has no competition.

In June 1999, Boeing announced it was studying longer range

derivatives of the 777 and on February 29, 2000 the board

approved the launch. To achieve the additional range, the

aircraft would feature aerodynamic improvements in the form

of 6.5ft raked wingtips to reduce takeoff fi eld length, increase

climb performance and reduce fuel burn. A new and improved

gear was required to cope with the heavier weight schedules

and a semi-levered gear would enable the 777-300ER to takeoff

from fi elds with a limited runway length. In a departure from its

previous position on the 777 Family, Boeing gave GE sole engine

supplier status on the second generation aircraft, upsetting

airlines that had selected P&W or Rolls-Royce on fi rst generation

versions but gaining a formidable risk-sharing partner for the

longer-range 777 programme. For its part, GE developed a new

version of its GE90 able to supply either 110,100lb or 115,300lb

thrust depending on airframe requirements.

The fi rst of this new generation, the 777-300ER entered service

with Air France on April 29, 2004. The 777-300ER offers a

three-class seating capacity of 365 passengers and a range of

up to 6,240nm for the basic version and up to 7,930nm for the

version with the maximum optional weight schedule.

It seems overly generous, based on today’s data, to describe

the comparison as competition. One unkind (and unnamed)

commentator was moved to describe the A340-600 as

“road-kill”. While undoubtedly harsh, it is hard to deny

the dominance of the 777-300ER. The picture may change

given the A350XWB programme and the undefined nature

of the A350-1000. However, Boeing and GE have worked

hard to achieve this dominance and are likely to introduce

ongoing improvements to maintain the competitiveness of

the 777-300ER. Without the complication of a multi-source

engine supply, the 777-300ER has much greater remarketing

potential than any preceding 777 Family member and thanks

to a signifi cant fuel burn advantage over the A340-600, its sales

volume has been sufficiently robust to suggest better-than-

average residual value retention going forward. As well as

depth, the 777-300ER market is also broad with 34 operators

having this version either in service or on order. With 101 777-

300ER orders, Emirates’ fl eet concentration may be an issue

for financiers. Some caution over advance levels may also

be advisable, as pricing seems to have been highly variable

depending on the nature of customers and their order activity.

THE 777-200LR AND FREIGHTERThe 777-200 Long-range (LR) is marketed by Boeing with a

three class seat capacity of 301 passengers and a range of up

to 8,240nm for the basic version and up to 9,450nm for the

version with the maximum optional weight schedule. The 777-

200LR entered commercial service with Pakistan International

Airlines in February 2006.

Perhaps it pales in contrast to the larger 777-300ER but

somehow the orderbook for the 777-200LR variant disappoints.

The payload/range performance results from incorporating the

structural changes made for the -300ER to the shorter airframe

of the -200 Series. But unsurprisingly, airlines were already

pleased with the performance of the very fl exible -200ER and

while many did not feel the need for the additional range or

belly-freight payload advantage of the -200LR, relatively few

routes demanded the performance of the new 777-200LR.

Using the -200LR on routes that can also be served using the

-200ER is another ‘no-no’ as the LR’s extra structure and weight

mean that the -200ER may be more economical. Another

complication is that more routes support use of the larger 777-

300ER and as long-range routes offer limited opportunity for

frequency (airport slot timing is often key), demand for the

-200LR looks likely to remain constrained. Airbus’ competitor

offering - the A340-500 - found a similar indifference for ultra-

long-range capability but also suffered more noticeably in the

fi nancial crisis as some airlines cancelled orders or realised

that their requirement for the A340-500 no longer remained.

Neither of these is easy to fi nance on the basis of the asset alone

but the A340-500 suffers from four-engine economics in an

increasingly environmentally conscious world, whereas the

777-200LR benefi ts from its association with the overall success

of the twin-engine 777 Family. As with the A-market versions

of the original 777 Family, the 777-200LR is not considered

suitable for pure asset-based fi nance but may be considered in

combination with an appropriate airline/lessor credit. Further

pressure will come from the A350-900 and 787-9 which are




expected to offer seat-mile costs that will be very competitive

for the -200LR. Lastly, the 777-200LR may have more potential

for a life-extending role-change to cargo usage in the future

provided that market appetite for conversions does not dwindle

in the long-term and provided Boeing’s conversion costs can be

economically attractive.

The 777-200 Freighter (previously the 777-200 Long-range

Freighter) is capable of flying 4,885nm (9,045 km) with a

full 226,000lb payload and general cargo market densities.

Although the aircraft offers a lower payload than the 747-400F,

the same twin-engine economics that served the 777 so well in

the passenger market now offer good value to cargo airlines.

With the 747-400F out of production and the 747-8F due for

delivery in 2010, Boeing clearly intends to serve the future

needs of the large cargo aircraft market with a blend of the

777-200LRF’s lower trip costs and the 747-8F’s larger payload

and lower freight-tonne-kilometre (FTK) costs.

Despite the worst conditions for the air cargo market for

many years, Boeing has collected more than 80 orders for

the 777-200F and several good quality airlines feature in the

customer list. In terms of investor and finance appeal, it is

necessary to weigh up the pros of the aircraft. These include

competitiveness, lack of competition, quality of operator base

and the ongoing need for efficient large cargo aircraft. Now

they should be considered against the cons, which include the

volatility of long-term demand for air cargo traffi c, an increasing

supply of converted and affordable alternatives and the niche

nature of the large cargo aircraft market, which ultimately may

constrain liquidity. One advantage of taking risk on a freighter

investment is the lower transition costs that result from not

having to customise a passenger cabin before redelivery in the

event of a remarketing.

Like everyone else, the financial and investor community

would appreciate a black or white conclusion – ‘this aircraft is

bad’ or ‘that aircraft is good’ but as ever, it seems we are forced

to recognise the inevitable shades of grey. B-Market 777s and

the largest of the longer-range derivatives – the 777-300ER

have been the foundation of the aircraft type’s overall success.

While acknowledging the usual pitfalls of line numbers, their

associated specifi cation constraints and normal variations in

engine modifi cation standards and their potential to constrain

liquidity, it seems fair to conclude that market demand for the

majority of these long-range versions is sufficient to ensure

reasonable liquidity. This is not to say that default remarketing

would not produce sobering values — but this would mostly

result from the shock of a distressed remarketing and the

transition costs, rather than any underlying issues. The shock of

a default would be considerable, not least because it is deemed

so unlikely – this also lends stability to fl eet values.

The A-market 777s are an entirely different proposition.

These aircraft are generally not suited to pure asset-based

finance as they rely on strong market conditions for their

liquidity and value. In a weak market, the aircraft’s ongoing

appeal to investors and financiers is largely dependent

on the creditworthiness of the counterparty. The smaller

quantity of A-market 777 sales, condensed over a shorter

period also suggests that the A-market versions will have a

shorter serviceable life than the more popular and long-range

versions. As the quality of the operator base is so crucial to

maintaining widebodied aircraft values, the older average age

of the A-market fl eet is already prompting some of the original

operators to divest numbers of these aircraft from their fl eets.

The resulting value volatility may well reduce the level of

advance in fi nancings and prompt more conservative residual

value assumptions for lower balloon positions at the end of the

loan term.

So thanks to the 777-300ER in particular, the 777 Family’s

fairy-tale continues and while dark murmurings about the

possible impact of the A350-1000 have begun, whether or

not the fairy-tale eventually becomes ‘Grimm’ will depend

on Boeing’s ability to protect the Family with technological

advancements and by ensuring that the 777-300ER and future

derivatives maintain their competitiveness. For today’s long-

range markets though, the 777-300ER blend of range and

capacity remains ‘just right’ and the aircraft is a fi rm favourite

with fi nanciers of larger aircraft. ■

BOEING 777 FAMILY GROSS ORDERS TO DATE


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24/7/365 Hotline: 00 8000 AOG TEAM

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FPA_check ATEM112_ALNmod_ATEM 112 22/07/2011 13:23 Page 3




AFTER IT SUCCESSFULLY INTRODUCED THE A300

in the 1970s, Airbus’ options for a new project included

three separate designs: a single-aisle aircraft; a larger capacity

derivative of the twin-aisle A300 (the TA9); and a long-range

four-engine design (the TA11). Despite consortium partners’

support for the TA9 and a reluctance to compete head on with

other manufacturers in the single-aisle market, Airbus forged the

single-aisle, or what we now know to be the A320 Family.

However, studies for the twin-aisle projects continued and

another TA12 design emerging that would offer less range than

the TA11 but would also feature twin engines.

Around this time, the realities of programme fi nance began to

bite, as did the need for support from partner companies and

their governments. It became clear that developing the TA12

would negate the need for the TA11 and Airbus dropped the

idea of the long-range twin-engine TA12. It began instead to

examine ways to reduce programme costs by maximising

the commonality of parts used on both the TA9 and TA11. It

concluded that the two aircraft could share a common fuselage

cross section with the A300/A310. They could also share a

common wing, control systems (apart from the engines) and

common avionics. These aircraft would put Airbus in the big

league of commercial aircraft manufacturers — alongside

Boeing and McDonnell-Douglas — allowing it to offer products

for the short-, mid- and long-range passenger markets with a

support network to match. Airbus still needed to decide the size

of the two aircraft, it seemed sensible to target a size not offered

by Boeing (the A300 was in tough competition with the 767).

A twin-engine aircraft would be more effi cient than the DC-

10 or Lockheed’s L-1011 and there was no long-range aircraft

smaller than the 747SP. The aircraft would serve market

growth and replacement needs for early A300, DC-10 and

L-1011 aircraft.

Through the earlier A300/A310 and A320 programmes, Airbus

had developed its partnerships with the manufacturing supply

chain, created aircraft production procedures - logistics and

assembly, the use of advanced materials in the structure and a

philosophy for fl y-by-wire (FBW) control systems and digital

cockpits. Airbus was ready to bring this together in the A330 and

A340 aircraft without facing the constraints of its main rivals as

Boeing and Douglas derived their new aircraft designs from the

preceding 747 and DC-10 aircraft. On January 27, 1986, Airbus’

supervisory board approved the TA9 and TA11 projects.

By June 1987, 10 airlines had placed orders for 41 TA9 and

89 of the larger TA11 aircraft — enough for Airbus to offi cially

launch the two new aircraft types as the A330 and A340

respectively. Both aircraft would be assembled in the same

purpose-built state-of-the-art facility in Toulouse. The partners

ascribed a similar risk-sharing distribution to that for the A300.

Engines for the A330 would be growth versions of the CF6-80

and PW4000 (Rolls-Royce was to offer its RB211 derivative

later). CFM International was selected to supply CFM56-5C

engines for the A340 after the International Aero Engines (IAE)

consortium embarrassingly withdrew its Superfan engine.

Airbus had to increase wing area to compensate for the lost

performance. By 1988, the mid-range A330 twin-engine design

had been refined to feature a fuselage of identical length to

that of the long-range, four-engined A340. The A340 was

marketed in two series (each with different length fuselages)

with the A340-200 offering a range of 7,700nmi and seating 262

passengers and the A340-300 a range of 6,850nmi while seating

295 passengers, both in a three-class layout.

Next year will be the 20th anniversary of the A330’s fi rst fl ight. With a competitor and successor taking shape, now seems a good time to review the fortunes of this popular aircraft and to ask what the future holds. Simon Finn, SVP of aviation at DVB Bank investigates

Financing the A330




THE A330-300 AND -200 The A330 was initially offered as just one series — the A330-

300. It featured a range of 4,600nmi with two-class seating

for 335 passengers and a 204 tonne maximum take-off weight

(MTOW).

All aircraft programmes have their diffi culties; often design

weights increase and other features are altered or dropped

as the programme develops. At the time of the first flight

in November 1992, the A330-300 featured a MTOW of 212

tonnes and there was no sign of the variable camber wing that

had been vaunted as the initial designs were discussed. The

A330 did feature much of the advanced technology of the

earlier A320 and A340 aircraft. It had a type rating common

to the A340, fl y-by-wire fl ight controls and quiet, effi cient

full authority digital engine control (FADEC) engines from a

choice of three suppliers: General Electric, Pratt & Whitney

or Rolls-Royce. The cockpit was very similar to the A320,

which allowed pilots to cross-qualify from one type to the

other with little additional training. This saved airlines

money and offered the possibility of better optimised fl ight

crew scheduling. Another feature of the aircraft markets has

been that airlines nearly always want more payload/range

than the initial version of a new aircraft provides. Airbus later

introduced a 217 tonne weight upgrade package for the A330-

300 that increased its range to around 4,850nmi.

By November 1995, the A330-300 was well established

and was being flown by airlines including Air Inter,

Aer Lingus, Cathay Pacific, Malaysia Airlines and Thai

Airways. However, the A330-300 market appeared not to

be developing as quickly as Airbus might have hoped and

slow progress was being made in face of the twin-engine

777. Like the A340, the new version offered trans-Pacifi c

range capability but with a twin-engine configuration.

Another mid-range 777 version with trans-Atlantic

range was pitched directly against the A330-300 and had

siphoned its orders.

Airbus launched a new series of the A330 with a shorter

fuselage. The A330-M10 would carry 253 passengers in three

classes around 6,400nmi, putting it in direct competition

with Boeing’s 767-300ER, which until then was very

successful. It would carry 293 passengers in a two-class

layout, at much lower seat-mile costs, with better climb

performance and greater payload and range than the 767-

300ER. Improvements to A340-300’s wing structure would

be transferred to the new A330 giving it a 230 tonne MTOW.

A new centre-section fuel tank would provide the additional

range for the shortened twin-jet.

In August 1997, the A330-200 (formerly A330-M10) fl ew

for the first time with GE CF6-80E1 engines. It entered

service with Canada 3000 in April 1998. In December 1997,

the first flight of a PW4000-100-powered A330-200 took

place, followed by the fi rst fl ight of Rolls-Royce’s Trent 700

version in June 1998. Another 233 tonne MTOW option

further enhanced the A330-200 payload and range. A330-

200 structural changes would also be incorporated into the

production of the A330-300, allowing the 230 tonne version

an extra 700nmi range so that it could serve routes from

Europe to the US west coast or Europe to Asia.

COMPETITION AND SUCCESSION Boeing initially responded with the 767-400ER, stretched from

the 767-300ER. The market did not respond well to another

767 variant without the performance now available from the

A330-200.

It seemed the A330-200 would take the lion’s share of the

market for the coming decade, but of course, Boeing would

not let that happen. In 2004, it announced the 787. It would

offer two series of 787 with greater range and effi ciency than

the A330s. The 242-seat (three class) 787-8 is smaller than the

A330-200. The 280-seat 787-9 is also smaller than the A330-

300 but both 787s offer much lower trip and seat-mile costs

and have superior all-round performance versus their larger

A330 Family competitors. The all new twin-engine 787 design

— with its clever use of advanced materials, all new engines

and extensive application of new technology — sold rapidly

until the global fi nancial crisis of 2008.

Airbus’ response included a 238 tonne MTOW option that

would take the A330-200 range to over 7,000nmi. Sales of the

787 slowed as it became clear that Seattle had major supply

chain issues and was struggling to meet its own programme

schedule.

As the global economy slowly improved, orders for the A330

returned while demand for the 787 seems to have stalled

pending clarity on its first delivery and the performance

capability that early aircraft will achieve.

In light of the 787, Airbus predicted trouble for the A330

and took additional action to protect its share of the market.

After some false starts, it offered the twin-engine A350 extra

widebody (XWB) Family. This features a new fuselage cross

section that is wider than the A330, extensive use of advanced

materials, and payload/range capability with operating

performance to rival the 787-9. The market responded

positively to the lead A350XWB-900 series, which is due to

enter service in 2013 — approximately the same time as the

787-9. Two other series; the shortened 270-seat -800 and the

stretched 350-seat -1000 are planned to follow the -900 but

the ultimate performance and capability of both series are still

being defi ned.

Airbus also took steps to shore up the A330 by offering a

production freighter — traditionally a means of ‘bridging’ a new

aircraft programme (the A350XWB) when orders are expected

to diminish. It seems likely that the pricing of the passenger

aircraft was slashed in 2005 to stimulate demand for the A330

in the face of the 787. The freighter also had synergies with

the A330 multi-role tanker transport (MRTT) initiative, which

helped keep production costs to a minimum.

Airbus has recently begun to offer a further increase for

the A330-300’s MTOW of 235 tonnes and has aggressively

marketed the effi ciency of this series. It claims that the long-

range designs for the new generation A350XWB or 787 aircraft

will not result in a signifi cant disadvantage to the A330, which

has a lighter weight schedule optimised for the mid- to long-

range mission rather than for trans-Pacifi c range capability.

For many years, the thought of building a competitor to

the 747 would be enough to cause Boeing’s rivals to weep as

it contemplated the sheer size of the investment required.

However, the passenger and airline reaction to twin-aisles had




been enough to tempt Lockheed and McDonnell-Douglas into

the market with their L-1011 and DC-10 aircraft — largely

aimed at the US trans-continental and the trans-Atlantic

markets. The A300 and A310 achieved some success in

Europe, Asia, the Middle East and even with Boeing’s

favourite customer, American Airlines. But, Boeing soon

trumped the A300 and A310 with the 767, which sold in

great volume. Hindsight will not treat the A340 kindly given

its poor performance against those in the 777 Family with

comparable range. But, the A330 was a different story.

Five years after entry into service, there were over 130 A330s

in service with 25 airlines. Airlines in Asia were the biggest

operators. Cathay Pacifi c, Philippine Airlines, Korean Air,

Malaysia Airlines and Thai Airways all found the aircraft well

suited to their networks. In Europe, Air Lingus, Swissair and

Sabena were customers, though elsewhere demand seemed

a little low. Airlines were not convinced that the A330-300

offered the network fl exibility they could achieve with the

slightly larger and much longer range 777-200ER. Airline‘s

held that 300-seat aircraft should be capable of serving trans-




Pacifi c routes but having a 250-seater in the form of the A330-

200 was fi ne — airlines were used to aircraft of this size across

the Atlantic or for intra-regional work on routes with too

much traffi c for a narrowbody.

Demand is cyclical with peaks and troughs along the way but

the record shows that after an initial order fl urry, A330-300

orders were averaging perhaps just 15 per annum from 1995

to 2000, while A330-200 orders were averaging from 25 to 35

per year. Fast forward to the period of 2005 to 2010 and A330-

300 annual orders are suddenly averaging 35 to 40 with A330-

200 orders at an average of 60 per annum. It seems there was

always underlying demand for the A330-200 but demand for

the A330-300 was initially patchy and the market has grown

into the larger A330 as traffi c has increased. The market seems

also to have been reassured of Airbus’ effi ciency. With long-

term fuel prices climbing relentlessly, network fl exibility now

plays second fi ddle to route effi ciency. It’s true that you can not

deploy the A330 as widely as the 777 but judging by orders

there are plenty of routes on which it can be deployed more

effi ciently than existing competing aircraft.


FINANCING THE A330The finance and investor market will always have its

favourite aircraft models. Usually, these are narrowbodied

aircraft types whose vast operator base coupled with lower

acquisition, maintenance and transition costs are a big draw.

For widebodies, the 767 was the golden child

of the early 1990s but as the 1990s,

ended affections were switched to

the 777. Financiers and investors are

somewhat like magpies — conditioned

to want shiny objects, they drop the last as

soon as a more polished one comes along.

Widebodied aircraft are less liquid and feature

much higher acquisition, maintenance and transition

costs but they also tend to reside with the fi nancially stronger

airlines. This reduces the probability of default, a trait that is

attractive to banks in particular. The A330-300 in particular

has a good quality operator base and the breadth of appeal

for the A330-200 makes up for the more variable nature of its

operators.

Assuming the worst does happen, the tri-source engine

supply for the A330 may complicate remarketing as operators

would have to incur the cost of introducing another OEM’s

engine to its fl eets. Within each basic engine type there are also

some undesirable engine variants that fail to deliver suffi cient

performance and so impair value. Additionally, there are some

doubts regarding the scrap values of older A330s as the market

for the sale of engine material to MRO shops is small. In some

cases, these shops are exclusively required to use new engine

material at engine shop visits. This makes fi nancing for some of

the mid-to-old A330s unattractive.

Some other widebodied aircraft have suffered similar issues

but some more positive aspects of the A330 are not typical

among its competitors. Fly-by-wire (FBW) cockpits make it

easier for airlines to train and recruit pilots who have already

qualifi ed on other Airbus FBW types, this lowers the associated

costs of adding A330s to an airline’s existing A320 fl eet.

By far the biggest challenge however, is how to view the

A330s future residual value. A basic undersupply of aircraft

of this size means demand for the A330 will be high. Delays

to the 787 have exacerbated the problem causing airlines

such as Singapore to state that their orders for A330s were

motivated by the need for an “interim fl eet” until deliveries

of the 787 and A350XWB arrive. Almost all of the aircraft

delivered were placed on short-term five- or six-year

operating leases with an option for Singapore to extend them.



acquisition, maintenance and transition costs are a big draw.

For widebodies, the 767 was the golden child

of the early 1990s but as the 1990s,

ended affections were switched to

conditioned

to want shiny objects, they drop the last as

soon as a more polished one comes along.

Widebodied aircraft are less liquid and feature

much higher acquisition, maintenance and transition


The airline has recently repeated this by adding another 15

A330-300 to its existing fl eet of 19. Singapore is scheduled to

receive 20 787-9 and 20 A350XWB with deliveries beginning

in 2013.

The A330 fl eet has an average age of less than seven years,

so the majority of in-service aircraft are still with their original

airline operators. Over 1,000 A330 passenger aircraft have

been sold and more than 750 are in service with 95 operators.

Ascend indicates that just 10 A330s are in storage today — a

low proportion which refl ects low supply.

The A330 has also been a very popular aircraft with the

operating lessors who manage 44 per cent of the fl eet currently

in service. This is a high percentage and carries the risk that

airlines may choose to manage capacity in future downturns

by simply not renewing leases as they expire. With so many

airlines featuring on the order books of the 787 and A350XWB,

the threat to A330 residual values is clear. For all the caution

that these issues should encourage, the fact remains that for a

great many routes, the A330s are the most effi cient aircraft of

their size available today (and more importantly for many years

to come).

It will take a long time before suffi cient numbers of newer

competitors penetrate the market. The 787-8 is set to be the fi rst

new aircraft to threaten the A330 but it could be 2017 before

suffi cient numbers of them are in service (though this does not

mean A330-200 values are immune to normal market forces).

The larger 787-9 and A350XWB-900 are not likely to reach

critical mass until perhaps as late as 2020, meaning that the

threat to A330-300 values are likely to be lower.

Ultimately, a financier has to finance whatever the market

is buying. Markets are never wrong, they buy the best aircraft

for the job (do not misunderstand this — individual buyers

can easily be wrong and may wrongly purchase all kinds

of ‘interesting’ stuff). At this time though, with a loan tenor

potentially stretching up to 12 years ahead of us, it does not

hurt to pay close attention to the implications to the residual

values of any aircraft being fi nanced today.

This places pressure on all parties in a transaction

— especially those who want to continue using the same

cookie cutter that served them so well in the past. Someone

clever once said; ‘There is no such thing as bad weather, only

poorly prepared people with inappropriate clothing.’ For now

and for some years to come, the A330 will stand as the most

popular widebodied aircraft available for fi nancing — provided

we dress appropriately. ■



MARKET DEVELOPMENT: WIDE BODIED PASSENGER FLEET (Excludes747 and A380)




IN RECENT YEARS ‘CLAW-BACK’ RISK has been an

important issue for participants in aircraft pre-delivery

payment (PDP) transactions. PDPs are progress payments that

a buyer makes to a manufacturer while new aircraft are being

built. They represent a substantial cash expense for the buyer, on

average 20 to 30 per cent of the price of the aircraft.

Claw-back (in the context of a US bankruptcy proceeding)

refers to the situation in which the buyer (the airline or lessor)

wishes to retrieve their PDP. In US bankruptcy cases, security

deposits are considered to be a type of cash collateral paid by

the purchaser (who is then considered and referred to as the

‘purchaser-debtor’), and can be returned to them subject to a

ruling by the court.

As such, an airline or lessor, as the purchaser-debtor, has the

legal right to request that the OEM re-pay the cash collateral.

However, the airline requesting bankruptcy court approval

also has the burden of proving that each entity with an interest

in the collateral (i.e. the lender and the manufacturer) is

adequately protected.

Although there is no reported bankruptcy case that addresses

the use of cash collateral comprised of PDPs under an aircraft

purchase agreement, the analysis regarding whether a

bankruptcy court would allow PDPs to be used by a purchaser-

debtor is the same as for other types of security deposits.

The fi rst prerequisite is for the bankruptcy court to view the

PDPs as a security deposit. If or when that characterisation is

The claw-back risk is of importance to everyone involved in pre-delivery (PDP) transactions yet few understand its risk or how it might affect a transaction. Cameron Gee, shareholder at Vedder Price, de-mystifi es the claw-back risk in the US.

Lowering risk in pre-delivery transactions




made, details of the ‘equity cushion’ will be decided. Here, a

bankruptcy court would examine whether the interests of

the manufacturer and the lender – the two parties having an

interest in the PDPs – are being protected.

Exactly what constitutes ‘adequate protection’ is decided on

a case-by-case basis, with the focus being that the aggregate

secured creditor’s interests should be protected from any drop

in value during the US bankruptcy process.

In most circumstances, a debtor looking to use such cash

collateral will seek to show that each creditor is protected by

the equity cushion – i.e., the creditor’s other collateral has a

value greater than that of the debt owed to it.

Although there is no easy rule, most bankruptcy courts require

an equity cushion of at least 15 to 20 per cent with the exact

amount dependent on the facts and circumstances of each

case. Adequate protection can also be provided by other means

including replacement liens on other assets and/or required

periodic payments.

For both the manufacturer and lenders collateral is comprised

of the PDPs that were paid to the manufacturer, and the

intrinsic value of the purchase agreement. The value of the

purchase agreement is determined by comparing the purchase

price of the aircraft with the projected values for aircraft at the

time of scheduled delivery.

If the projected value is higher than the purchase price, the

equity cushion would cover the excess amount. If the equity

cushion provided by the intrinsic value of the purchase

agreement is suffi cient, a bankruptcy court could then order

some or all of the PDPs to be returned to the purchaser-debtor.

In theory, this type of order would not be detrimental to the

manufacturer or the lender because the bankruptcy court

has determined that they remain fully secured. In practice,

however, this system is problematic for lenders for two main

reasons. Firstly, a bankruptcy court will second-guess the

lender’s assessment of aircraft values and projected values –

and may not agree with the lenders calculations.

Secondly, the bankruptcy court can only estimate the

projected values. It is far from a perfect process and creates risk

that a bankruptcy court may inaccurately assess the intrinsic

value of the purchase contract.

If a purchaser-debtor decides to reject the purchase agreement

and not purchase the aircraft, its ability to recover the PDPs

may be very problematic as in doing so it reduces the overall

value of the collateral and exposes both the manufacturer and

the lender to collateral risk. This risk is what is referred to as the

claw-back risk.

Yet, the risk of claw-back is remote. In practise, a claw-back

exists only when future aircraft values remain high (or the

debtor has suffi cient alternative collateral to provide adequate

protection), but the debtor rejects the purchase agreement; this

situation rarely occurs.

Usually, a debtor will decide to reject its aircraft purchase




agreements in economic downturns – during which the values

of aircraft are dropping. In such a situation, a debtor will have

diffi culty showing that the purchase agreement alone provides

a sufficient equity cushion to justify its use of the PDPs.

Accordingly, claw-back seems unlikely in the most probable

scenario.

Furthermore, the legal basis for a claw-back faces numerous

hurdles. Manufacturers will use precise and considered

language in their purchase agreement to minimise the chances

that the PDPs are characterised as security deposits; rather,

the manufacturer uses express contractual terms stating that

the PDPs, once paid, are the property of the manufacturer as

compensation for the cost of the construction of the aircraft.

Under the terms of most aircraft purchase agreements, the

PDPs are described as absolute and unconditional payments –


as such only the manufacturer has an interest in the PDPs, not the purchaser.

Based upon the express terms of the purchase agreement, a purchaser-

debtor may have difficulty either characterising the PDPs as a security

deposit or other interest in which it has any reversionary interest. If the

manufacturer’s interpretation of the agreement is upheld the claw back of the

PDPs should not occur.

The claw-back risk described here is also mitigated in PDP financings

where there is little risk of a purchaser-debtor becoming the subject of a US

bankruptcy case. Where the bankruptcy laws applicable to the debtor do not

include similar concepts for a purchaser-debtor to recapture PDPs then US

claw-back analysis will not apply. However, there may be other claw-back

concepts that apply in the jurisdiction of a purchaser-debtor.

The effect of the claw-back risk analysis in the US has been that different

lenders have taken various approaches to PDP fi nancing transactions. Some

lenders accept claw-back risk as a necessary part of doing business because

of the remote chance it will occur, the protection the contract provides and

the legal impediments in place.

Some will proceed with the transaction but either discount the value of

their collateral to protect against the risk, have their transactions approved

on an unsecured basis or require that structural features be included to

minimise their risk.

Yet there are some who will reject the risk and the deal because of the

potential severity of the consequences – a claw-back could completely

eliminate the value of their collateral.

The variety of approaches is a result of mixed advice on the likelihood and

potential effect of a claw-back. With a clearer understanding of how claw-

back risk affects PDP transactions it is hoped that all parties will be able to

better determine an approach that works for their specifi c circumstances. ■

Many thanks to Michael J. Edelman, shareholder, Vedder Price, for lending

his bankruptcy expertise to the writing of this article.






IN TODAY’S COST-CONSCIOUS ENVIRONMENT,

THE single biggest expense for every airline is fuel. The

International Air Transport Association (IATA) predicts

that fuel costs constitute 27 per cent of an airline’s overall

operating costs in 2011, with the average price of a barrel of

oil reaching $96 over the 1Q of the year. The impact of this

rising expenditure is signifi cant. In May, IATA downgraded

its annual profi t forecast for the aviation industry to $4bn - a

54 per cent fall compared with the $8.6bn profi t forecast in

March 2011 and a 78 per cent drop compared with the $18bn

net profi t recorded in the full-year before.

As every dollar increase in the price of crude oil results

in about $1.6bn in new costs across the industry each year

– costs which European operators would need to pass onto

their customers – the outlook is certainly gloomy. So what

can be done to help European operators mitigate the impact

of these increased costs? There are solutions to minimise

this issue. Significant technological advancements both

in development and available today can increase airline

effi ciency, drastically reduce fuel consumption and thereby

decrease overall fuel costs,

The modernisation of air traffic management (ATM) is a

key area that will have a considerable impact on airline

operational effi ciency. Single European Sky ATM Research

programme (SESAR), which is committed to driving

modernisation in European ATM, and IATA both indicate

that improvements in ATM alone could improve fuel

effi ciency by 10 to 12 per cent, with even greater gains to be

realised from research and development in new fuels and

technologies within airframes themselves. To put this in

perspective, even a one per cent effi ciency gain saves up to

500,000 tonnes of fuel per year in Europe.

How the price of oil is fuelling ATM effi ciencyPaolo Carmassi, president of Honeywell EMEAI, explains how the current high price of jet fuel is making it more important than ever for airlines to adopt new ATM technologies to improve their operating effi ciency and, ultimately, their bottom line.

Paolo Carmassi, president of Honeywell EMEAI




THE ROUTE TO USING LESS FUELAs technology and advanced engineering are the foundations

of the aviation industry, it makes sense that technology plays

a central role in helping the industry combat the vexing

problem of the ever-increasing cost of fuel. With the smallest

improvements making big changes to fuel efficiency and

operating costs, let us take a look at one area where progress is

being made right now.

Instrument landing systems (ILS) have been in general use

since the 1960s, although the technology and concept dates

back to the early 1930s, when passenger air travel was quickly

evolving. With the number and frequency of fl ights continuing

to rise globally, there is an urgent need to provide an accurate

method of landing aircraft when visibility is poor. The idea of

using radio markers as data points was tested operationally in

1929 and faced its fi rst true test during a snowstorm in January,

1938 in Pittsburgh, Pennsylvania, when the first scheduled

passenger aircraft landed using only ILS. The concept is still the

same today as it was 70 years ago, but technology has evolved

significantly, giving us new and improved ways to provide

precision guidance to aircraft approaching and landing. This

enables pilots to minimise missed approaches and so reduce

overall fuel consumption.

However, despite innovations in ILS technology, the

increasing growth in air travel means we are still striving to

meet the future ATM demands of today and tomorrow. ILS

suffers from a number of technical limitations, such as signal

interference, multipath effects (for example, due to new

building works at and around airports) and its limited ability

to manage only one approach at a time. These challenges mean

that airports regularly suffer reduced capacity as visibility

worsens. In the US alone, 15 of the top airports experience

greater than 25 per cent reduced capacity when ceilings are

below 200ft. In these situations, aircraft are often forced to circle

in holding patterns, which burns more fuel, or even worse, are

diverted to alternative airports, causing an extension to the

aircraft’s total fl ight distance and further increasing fuel burn.

SESAR and IATA both indicate that improvements in ATM alone could improve fuel effi ciency by 10 to 12 per cent, with even greater gains to be realised from research and development in new fuels and technologies.

GROUND YOUR COSTS, NOT YOUR AIRCRAFTTo overcome ILS challenges, Honeywell has embraced ground-based

augmentation system (GBAS) technology, which is installed at airports

to identify and correct small errors in GPS signals and then transmit this

information to arriving and departing aircraft. Honeywell’s SmartPath is the

fi rst Federal Aviation Administration (FAA) certifi ed GBAS implementation

introduced into the US National Airspace System (NAS). It helps modernise

ATM, increases an airport’s operational capacity and enables substantial

maintenance and fuel savings by allowing aircraft to fl y either complex or

straight-in approaches, depending on air traffi c demands. Unlike existing

single runway systems, Honeywell’s GBAS can also support up to four

runway operations simultaneously. In comparison to ILS technology,

the potential savings for airports using GBAS could reach up to $500,000

per system, per year in reduced environmental and maintenance costs.

Currently, there are 25 SmartPath systems installed worldwide, including

the Newark, Grant County, Rio de Janeiro and Sydney airports.

Also designed to improve efficiency on approach, required navigation

performance (RNP) goes one step further by using GPS and Honeywell’s

inertial reference systems coupled with its fl ight management system (FMS)

and cockpit displays. RNP defi nes the navigation performance level required

to operate in a particular airspace or on a designated route (i.e. enroute,

terminal, or approach). RNP-approved systems provide the same onboard

capability to conduct traditional Area Navigation (RNAV) operations with

a higher degree of accuracy. This capability enables operations with reduced

obstacle clearance criteria for terminal area procedures as well as closer route

spacing - a major contributor to the benefi ts of performance-based navigation.

RNP is independent of ground-based navigation aids, which allow airlines to

fl y optimised fl ight paths with continuous descent into airports surrounded

by challenging terrain.




In order to meet the future demands of air travel, Honeywell is now developing and

certifying a suite of avionics systems as part of the SESAR and US-based Next Gen

initiatives, to improve safety, situational awareness and overall fuel effi ciency. One

such system is SmartView Enhanced and Synthetic Vision EVS/SVS. Designed to

display detailed real-time images of the terrain and key ground-based objects, EVS/SVS

enables pilots to see runways and the surrounding land relief even in poor visibility

to make approaches easier and safer. By enhancing the pilots’ view with an accurate

synthetic image that increases the completion of approach and landing manoeuvres and

decreases the number of descent aborts, diversions and re-attempts, fuel is saved and

safety increased. Currently, pilots fl ying Category 1 approaches in bad weather must

decide whether to continue or abort a landing attempt at 200ft. With a certifi ed EVS/

SVS system on the aircraft, the landing decision may be lowered to as low as 100ft,

increasing decision time and maximising the chance of a fi rst-time landing.

Eurocontrol’s Performance Review Commission (PRC) estimated the cost to users of unnecessary route extensions at a staggering €2.2bn ($3.09bn), and the environmental cost at 4.7 million tonnes of CO2. To help mitigate this impact, SESAR aims to reduce the environmental effect of every fl ight by 10 per cent through increasing system capacity by 70 per cent and reducing delays associated with take off.

HOW TO SAVE $100,000 IN FUEL COSTS PER FLIGHT Technology plays a key role in every stage of an aircraft’s fl ight,

and by retro-fi tting or upgrading, airlines can achieve major

improvements to overall performance effi ciency and reduce

fuel consumption and overall fl ight time. In Europe, by 2020,

SESAR is hoping to cut average flight time by eight to 14

minutes, cut 300 to 500kg of fuel and reduce CO2 emissions by

at least 948kg per fl ight.

As a key member of SESAR, Honeywell is helping to

accelerate efficiency and achieve these objectives. One

way the company is doing so is with its newly certified

advanced traffi c collision avoidance system (TCAS), which

can significantly reduce airline operating costs while

improving situational awareness and safety. Honeywell’s

recently certifi ed TCAS with SmartTraffi c maximises safety,

reduces operating costs and helps airlines gain effi ciencies.

Importantly, it enables an airline to incorporate in trail

procedure (ITP) on a transoceanic flight. ITP is designed

to reduce oceanic and remote area aircraft separation by

allowing aircraft to obtain a more efficient routing while

maintaining a safe, yet reduced distance from neighbouring

traffi c. With the system, pilots can choose a more effi cient

altitude during transoceanic fl ight routing and move to adopt

that route more quickly than with traditional TCAS systems.

The ability to change routes quickly and simply can enable

annual fuel savings of up to $100,000 per aircraft. Ultimately,

ITP and the next generation avionics system will allow

aircraft to fl y closer together and land more quickly without

sacrifi cing safety.




LEANER AND GREENER Overall, airlines are minimising their

environmental impact through more efficient

routing with the help of advanced flight

management systems (FMS). FMS help flight

crews compute the most effi cient fl ight profi le

and automatically navigate the aircraft. This

makes significant operational cost savings by

increasing the number of aircraft in the sky.

Eurocontrol’s Performance Review Commission

(PRC) estimated the cost to users of unnecessary

route extensions at a staggering €2.2bn, and the

environmental cost at 4.7 million tonnes of CO2.

To help mitigate this impact, SESAR aims to

reduce the environmental effect of every fl ight by

10 per cent through increasing system capacity

by 70 per cent and reducing delays associated

with take off and arrival to less than a minute.

In addition, synthetic fuels can also help reduce

emissions and ameliorate the fi nancial burden of

high oil prices. Through its petroleum technology

company—Honeywell UOP—Honeywell has

developed a sustainable aviation biofuel to help

airlines make further strides towards lower CO2

emissions and lower fuel costs. Made from a

renewable green plant source, the biofuel requires

no change to the aircraft’s engine technology

when used at a 50 per cent blend with a

petroleum-based jet fuel, and meets or exceeds all

specifi cations for fl ight. This also offers up to an

80 per cent reduction in greenhouse gas emissions

over full petroleum-based fuels.

Overall, as air travel continues to increase but

combines with volatile fuel prices, the need for

airlines to become more cost-effective, energy

efficient and environmentally friendly is now

more business critical than ever. Honeywell is

working with its partners across the industry to

bring next generation ATM technologies into

mainstream aviation as quickly as possible. As

the industry adopts these technologies under the

guidance of programmes such as Next Gen and

SESAR, the future impact of soaring oil prices

may not be as signifi cant a threat to the industry as

it appears today. ■


THE SUBJECT OF AIRLINE FEES is continually in the press;

most recently, the Department of Transportation’s (DOT)

call for fee transparency has added fuel to the fi re. Yet clarity

on additional fees should benefi t both consumers and airlines.

It is certainly not something that should cause airlines concern.

It is important to note that airlines already submit quarterly

reports, which list revenues from baggage and reservation

change requests. However, missing from the reports are, for

example, in-fl ight food sales, in-fl ight entertainment revenues

and other add-ons. These are currently reported collectively.

A SHIFT IN THE INDUSTRYAs from mid-August, airlines must disclose ancillary

revenue charges on their websites with a link listing all

fees. The DOT is still deciding whether airlines will have

to provide ancillary fee information to travel agents and

websites for further customer comparison. International

Air Transport Association (IATA) branded the recent

developments “troublesome” and its spokesperson, Perry

Flint, claimed they were “a signifi cant intrusion into the

commercial marketplace.”

New requirements on quarterly sales reports would

add 16 categories for submission. They aim to encourage

price transparency and to clearly inform travelers of all

additional fees and surcharges. This is not necessarily a bad

thing. Transparency can reward those airlines that develop

sustainable, non-fee-based ancillary revenue streams, in effect

creating a system of incentives that would be benefi cial not

only to airlines but to travelers and the industry as a whole.

A recent report from IdeaWorks highlights the increasing

pressure on airlines to fi nd new means to increase ancillary

revenues. Checked baggage fees are growing worldwide, with

The US Department of Transportation (DOT) recently called for airlines to provide in-depth reports on receiving fees from a variety of sources. This is a heated issue and it is one that has been developing since June 2010. Raphael Bejar, CEO of Airsavings, which helps airlines to lower costs and generate revenue, gives his views on the matter.

The futureof ancillary revenues






some of the most notable changes coming from prime routes,

namely: New York to Rome, Los Angeles to Tokyo and Tokyo

to London, plus domestic US and intra-Europe fl ights. United

Continental announced a new initiative to add second baggage

fees to fl ights such as those covering Asia and the Middle East.

The report clarifi es: “the windfall of cash that bag fees provide

at a time of economic peril is simply too compelling to ignore.”

In most cases, that is very true. There is little doubt that

ancillary revenues will increase – whether or not they are

reported. Just like any fee structure, there is a natural give and

take, which means additional baggage fees will reach a ceiling,

although airlines are still experimenting with how high that

ceiling is. After reaching the potential in one ancillary revenue

category, airlines need a new source to tap into. In-cabin sales

are an essential part of airlines’ ancillary revenues. In the Asia-

Pacifi c region, 71 per cent of airlines use a duty-free model of

in-cabin sales to generate ancillary revenues.

LOOKING CLOSER AT ANCILLARY REVENUESAfter a fl urry of new ancillary products and services, airlines

are searching for sustainable ancillary revenue solutions.

With the DOT’s push towards transparency, sustainable and

long-term revenues can provide a more enjoyable passenger

experience while exploring advanced branding methods.

In other words, opportunity is knocking. IdeaWorks’ report

shows that ancillary revenues netted airlines more than

$22.6bn in 2010. Ancillary revenues recorded for 47 carriers

jumped a healthy 60 per cent to more than $21bn last year.

Delta Airlines made the second-highest ancillary revenue

with $3.7bn. Industry experts note that the world’s largest

carrier has embraced the ancillary revenues model, adding

fees like in-flight Wi-Fi, onboard dining, and on-demand

movies. In addition, the UK’s airline easyJet’s 2H revenues per

seat are expected to improve by fi ve per cent, due in part to

ancillary revenue.




Air Berlin earned over €38m ($54.6m) in 2010 from duty-

free and in-fl ight sales; JetBlue’s ‘even More Leg-room’ seating

option contributed $85m of revenue in 2010. Third-party

sources for Allegiant Airways show revenue sources such as

hotel accommodation and ground transportation topped $24m.

US Airways’ economy seating option, Choice Seats, pulled $30

to $40m revenue in 2010.

Ancillary revenue strategies can seem confusing to the

uninitiated. Why complicate things with such an assortment of

add-ons? Instead of focusing on each product and how it ties

to the rest of the onboard experience, it is more appropriate to

think of the airline shop as a convenient one-stop destination.

The ticket provides a chance to shop for destination-based

products, forgotten travel essentials and gifts. This branding

opportunity allows airlines to add value, add sales, and add

experience — all the while keeping ticket prices down as an

incentive to enter and experience the ‘airline shop’.

The business class service can be greatly affected by the

length of travel times. One new revenue initiative allows

travelers to take advantage of local concierge services like hotel

reservations, ground transportation, and restaurant reservations

prior to touchdown. As the programme can be implemented

by airlines without any initial cost, it is an example of an

investment that increases ancillary revenue streams while

also increasing brand interaction. This new process could

conceivably be placed at any stage of the booking process and

with low costs to the user it provides airlines with plenty of

opportunity to increase revenue.




ANCILLARY REVENUES HEAT UPInnovation breeds new opportunity in any industry. As

traditional fees reach their ceiling and as transparency

becomes increasingly important to both airlines and travellers,

airlines need to look at adding new products and services

that will create tangible value throughout the entire journey –

starting in the booking path through to the very end of the trip.

Airlines are experimenting with goods and services that

show extraordinary promise. The popularity of concierge and

destination-based products is growing and it appears that more

airlines are willing to test and examine their efforts to produce

ancillary revenues of this kind. According to Amadeus and

Forrester in January 2011’s Cross-Sell Your Way to Profi t, “By

offering these services, airlines and other travel suppliers could

fulfi ll many of the product areas in which they don’t currently

participate while also offering a more comprehensive travel

experience to their customers.”

It may appear that consumers respond negatively to additional

fees however, the benefits additional services provide can

arguably out-weigh any qualms. Hotel stays, concierge services,

holiday insurance and weather protection are just a small

number of additional options to be enjoyed by the average

traveler. Moreover, as we see more airlines increasing their

sources of ancillary revenue the industry undoubtedly find

many more products and services to offer.

Untapped services promise substantial revenue increases, but

additional revenue can also be garnered from the technology

used to support these sales. Products and services will need

to be adjusted according to the demographic, route, season,

time, and carrier. Airlines should act now to experiment with

optimising their customer experience.

Businesses must learn to adapt, particularly in changing

times. The needs and desires of today’s travelers have

changed yet airlines have the opportunity to change with

them. To do this they must incorporate more pre-sell, online,

mobile and virtual products into their offerings and create a

more transparent and sustainable ancillary strategy which

appeals to passengers. Every product and partnership has

the potential to generate revenue while also complementing

a journey.

Sustainable ancillary revenue has vast potential. In light of

industry expectations and the needs of passengers, airlines

should pursue new revenue streams and services now —

regardless of pending DOT decisions. While fee-based ancillary

revenues have been criticised, sustainable initiatives provide

the chance for carriers to improve their reputation and profi ts.

Airlines need to start tapping into existing resources and

technology, starting with increased transparency.

It may be a simplistic view, but why complicate the ancillary

revenue debate any further? ■

© Airbus. A350 XWB




DURING THE DOWNTURN, ECA’S STEPPED up their

support of aircraft acquistions buoying sales when

fi nancing for aircraft was hard to fi nd. The regional jet market

also needed help. Demand for the aircraft rose particularly as

airlines were fi nding that aircraft with fewer seats could provide

economic effi ciency on routes with lower passenger traffi c.

Below, ATR discusses the importance of ECA funding for

its regional aircraft, a subject that in light of the 2011 Aircraft

Sector Understanding (ASU), which took effect on February 1

2011, is all the more topical.

Under the new ASU, regional aircraft are restricted to

the same fi nancing terms as larger jets — this is a change

from the preceding 2007 ASU under which large and

regional jets were divided into two categories with different

fi nancing rules for each. But Bombardiers’ CSeries confused

matters; developed by a regional aircraft manufacturer, it

would have been defi ned as a Category 2 jet, yet it competed

directly with Airbus’ and Boeing’s Category 1 aircraft. The

result was that all categories were scrapped. Now all aircraft

are on an equal footing in terms of financing, meaning

regional jets are no longer subject to more favourable

fi nancing terms.

Under the ASU, ECA premiums will increase alongside

market conditions, meaning banks and fi nanciers will be able to

provide similar loan terms to ECAs. However, regional aircraft

due for delivery up to 2013 are subject to a waiver.

The role of Export Credit Agencies (ECAs) in fi nancing commercial aircraft throughout the last downturn has been greatly touted. Few doubt the magnitude of their help in supporting airline fl eet development and preventing the desert graves fi lling with whitetails, yet few mention their impact with regard to small aircraft. ATR speaks out.

ECAs: A major asset for the sale of ATRs abroad




ATR ON THE IMPACT OF ECASAccording to ATR, the Franco-Italian manufacturer of

turboprop regional aircraft, the company has been especially

successful since the recovery of the turboprop market in

2005. It has received over 500 orders over the last seven

years, representing more than a third of all orders made since

the company was founded in 1981. In the 1H 2011, ATR

announced orders for 88 new aircraft, including a record 60

orders announced at the Paris Air Show.

ATR has a sizable portfolio of 175 operators located in 94

countries yet it is often faced with the perception — namely

from banks and fi nanciers — that regional market operators

(those that operate fl ights of up to approximately 800km), have

a lower profi le than their international counterparts.

Against this backdrop, the support provided by Export

Credit Agencies (ECAs) is a major, even indispensable, source

of financing for modest companies. Being a Franco-Italian

company, ATR has access to France’s ECA, Coface, and Italy’s

SACE. Both agencies support the export of ATRs by providing

responsible fi nancing along with credit insurance. They cover

up to 95 per cent of the bank’s financial undertaking in the

event of a customer default, therefore improving the economic

conditions of the loan for the airline.

In ratifying states, ECAs are governed by Organisation for

Economic Co-operation and Development (OECD) agreements,

which promote fair competition. Under these export credit

ECAs have played a crucial role in maintaining the levels of ATR deliveries and have allowed the company to deliver over 50 aircraft per year these past three years – record fi gures for the regional aircraft manufacturer.




rules the products of one country will not be favoured

over those of another signatory state, for example Canada’s

Bombardier or Europe’s ATR.

Following the last financial crisis and the severe lack of

liquidity, airlines increasingly resorted to export credit for

aircraft fi nancing. This is as much the case for Boeing or Airbus

jets as it was for regional aircraft like ATR’s. For Airbus, the

share of aircraft delivered with the aid of ECAs rose from 20 per

cent to around 35 per cent (taking the amount covered by ECAs

in 2010 up to $10bn). For ATR, the proportion covered by ECAs

rose from 40 to 55 per cent in 2010 (to approximately $400m).

ECAs have therefore played a crucial role in maintaining the

levels of ATR deliveries and have allowed the company to

deliver over 50 aircraft per year these past three years — record

fi gures for the regional aircraft manufacturer.

ATRs are also very popular on the used aircraft market

due to their enhanced reliability and low operating and

maintenance costs, this means that their high residual value

has become a real asset for both banks and ECAs. They know

that these aircraft can quite easily be placed with a leasing

company or airline.

In this context and to alleviate tensions concerning

government liquidity, the OECD recently (December 2010)

increased the cost of fi nancial support [under the 2011 ASU],

making bank fi nancing without the involvement of ECAs less

attractive. Naturally, for companies and manufacturers this

complicates the process of securing fi nancing for deliveries.

That said, it is interesting to note that over the 25 year-period

from 1986 to 2010, 204 ATR aircraft were fi nanced with ECA

support. That is 22 per cent of the 915 aircraft delivered. Of that

total, 711 or 78 per cent, were delivered without ECA support.

Only two of the ATR aircraft fi nanced with ECA support were

repossessed further to an event of default — that is less than one

per cent of the total aircraft fi nanced with ECA support. Those

two aircraft were soon placed on fi ve-year operating leases and

then sold for cash.

For a signifi cant period, the default rate for ECAs has been

extremely low and the agencies have made profits. This is

because the strict fi nancial analysis of regional airlines must

be enriched with additional factual information. Some such

The demand for regional jets and forecasted growth for the market should not be underestimated, indeed it is little known but approximately 30 per cent of the world’s airports rely solely on turboprop operations.




information has proven important to the understanding of

regional airlines’ financial performance and must be taken

into account during a comprehensive credit assessment. For

example, some regional airlines operate subsidised routes,

others are subsidiaries of larger airlines. Also, regional carriers

can operate routes with no or limited competition and with

good or low but stable profi tability.

In addition, because of market growth, there is likely to

be more interest in financing turboprops in the future. The

demand for regional jets and forecasted growth for the market

should not be underestimated, indeed it is little known but

approximately 30 per cent of the world’s airports rely solely

on turboprop operations. Also, lower operating costs and

operational fl exibility are keys requirements for many airlines

and more fi nanciers should take the specifi cities of regional

airlines into account during credit assessments.

In order to respond to market demand next year, ATR will

increase its production to more than 70 aircraft. In this context,

ECA financing will remain a strong source of ATR aircraft

fi nancing when it is in the best interest of the client. There is,

however, an area in which ECAs are of limited assistance to

exports — for example, import duties in certain countries. The

best example is China, with its 22.5 per cent import surcharge

on aircraft such as ATRs, which potentially compete with their

MA-60 turboprop, an aircraft that is neither certifi ed in Europe

nor the US. ■


THERE ARE MANY REASONS WHY Ireland has become

a global hub for aviation finance and leasing activities.

Tax is only one of them but it is arguably the most important.

Though not a tax haven, Ireland does offer a very favourable tax

regime. It also offers a long-standing industry of aviation fi nance

professionals, from aircraft and engine lessors to fi nancers to

legal advisors.

IRELAND’S ECONOMIC STANDINGIreland’s current fi nancial situation has been well documented.

As a result, there has been some interest as to whether the

Irish Government may be forced to increase corporate taxes.

This stemmed not from the International Monetary Fund

(IMF) which supports Ireland’s tax regime, but rather from

discussions at EU level. Ireland has however insisted on

In the world of aviation fi nance, one jurisdiction stands head and shoulders above the rest — Ireland. It is estimated that there are at least 30 lessors active in the region including AerCap, GECAS, ILFC and Boeing Capital. It is also estimated that about €83bn ($117bn) worth of aircraft are managed from Ireland. Why? Because of Ireland’s extensive tax treaty network. Ailish Finnerty and Caroline Devlin, both partners at Arthur Cox, explain the reasons for Ireland’s allure.



Ireland’s tax advantages


maintaining its corporate tax rates of 12.5 per cent, a position

taken by successive governments and supported across all the

main political parties in Ireland.

Ireland has continuously re-iterated its commitment to its tax

regime and in particular its corporate tax on trading profi ts. For

example, in The Strategy for the International Financial Services

Industry in Ireland 2011-2016, published by the Department

of the Taoiseach in July, 2011, it is states: “Ireland is absolutely

committed to maintaining its 12.5 per cent corporate tax rate.

This commitment is protected in an EU context by the principle

of unanimity in taxation matters, and is accepted as part of the

EU/IMF Memorandum of Understanding”. The view in Ireland

therefore is that the tax rate of 12.5 per cent is untouchable, and

this has been welcomed by those investing in Ireland.

When establishing an aviation leasing platform in any

jurisdiction, there are three principal issues that will be

of concern from a tax perspective, namely: that the entity

can receive lease rental payments from lessees in different

jurisdictions with little or no taxes withheld at local level; that

the entity suffers minimal tax; and that profi ts can be extracted

from the entity to investors in a tax effi cient manner with little

or no taxes withheld in the entity’s home jurisdiction.

Ireland has an extensive tax treaty network with

comprehensive double tax treaties signed with 63 jurisdictions

(of which 55 are in effect and the remainder are going through

the procedures required to become legally effective). The vast

majority of these treaties permit lease payments to be made

to an Irish lessor free of withholding tax in the lessee’s home

jurisdiction. This is a major advantage to Ireland as a favourable

jurisdiction for an aviation leasing platform as it ensures lease

payments can be received by the Irish lessor free of underlying

withholding tax in most cases.

TAX TREATMENT OF IRISH LESSORSUntil recently, an aviation leasing platform in Ireland was

generally established as an Irish resident trading company

availing of the 12.5 per cent rate of corporation tax which

applies to trading profi ts. This meant that the Irish company

was required to carry out a trade in Ireland requiring a certain

level of substance and activity. The capital cost of acquiring

the equipment would generally qualify for tax depreciation

(known in Ireland as capital allowances) over an eight

year period. The combination of the 12.5 per cent rate of

corporation tax and the generous capital allowances available

in respect of the capital cost incurred (together with deductible

financing and other costs) means that the Irish company

generally suffers a very low effective rate of tax.

Ireland has insisted on maintaining its corporate tax rates of 12.5 per cent, a position taken by successive governments and supported across all the main political parties in Ireland… The view in Ireland therefore is that the tax rate is untouchable, and this has been welcomed by those investing in Ireland.




An interesting new development has been the introduction of

an alternative means of structuring an aviation leasing platform

in Ireland, which simplifi es the trading analysis and lowers

the administrative requirements in Ireland. The new method

works best when investors wish to extract the profi ts from the

Irish vehicle (typically in a form of profi t participating debt)

rather than earn and retain profi ts in Ireland, but it is of course

possible to combine it with other structures to achieve this.

Since the passing of Ireland’s Finance Act 2011, it is now

possible for a special purpose vehicle (SPV) established in

Ireland to undertake leasing of plant and machinery – such

as aircraft, engines and rolling stock – and to avail of the very

favourable tax regime afforded by Section 110 of the Taxes

Consolidation Act 1997 (Section 110), a regime which has been

widely used for many years in securitisation and structured

fi nance transactions.

The Section 110 regime applies to a company engaged in

the holding or management of a wide variety of financial

assets – for example debt, share portfolios and all types of

receivables – and now may also hold, manage and lease plant

and machinery.

Minimising tax costs on on-going activites and on cash

extraction are crucial to any leasing SPV or platform. The

taxable profits of a company operating within the Secion

110 regime are computed broadly following the financial

accounts of the company. As a result the cost of funding

and other business expenditure is generally tax deductible

and SPVs are usually structured so that their net taxable

profi t is generally maintained at a negligible level as there

is no minimum profi t required for tax purposes. Interest on

profi t participating debt (or profi t stripping debt) issued by

a Section 110 company is generally deductible for it in the

computation of its taxable profi ts.

In the past, advisers to an Irish leasing SPV or platform were

usually required to model the profi ts of the leasing activity

to ensure that timing issues related to the ability to claim

capital allowances/tax depreciation did not result in tax

miss-matches. In most cases, this will no longer be needed

under the new regime as the ability to deduct interest on

profi t participating debt will resolve this issue as a matter of

legal structuring. This will reduce the administrative cost of

setting up leasing SPVs and platforms.

Ireland has an extensive tax network treaty… it s a major advantage to Ireland as a favourable jurisdiction for an aviation leasing platform as it ensures lease payments can be received by the Irish lessor free of underlying withholding tax in most cases.



ExperienceKPMG is a leading provider of

cross-border advisory services to the international aviation finance and leasing sector

www.kpmg.ie/aviation

© 2011 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

To find out more about how we can help you, please contact Tom Woods on +353 1 410 2589 or [email protected]

AirFinanceGuide_Advert.indd 1 02/09/2011 13:33AFG Yearbook 2012.indd 60 07/09/2011 13:54

ExperienceKPMG is a leading provider of

cross-border advisory services to the international aviation finance and leasing sector

www.kpmg.ie/aviation

© 2011 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

To find out more about how we can help you, please contact Tom Woods on +353 1 410 2589 or [email protected]

AirFinanceGuide_Advert.indd 1 02/09/2011 13:33AFG Yearbook 2012.indd 61 07/09/2011 13:54



EFFICIENT PROFIT EXTRACTIONThe Section 110 company, issuing profi t participating debt

to its investors and getting a deduction for doing so, offers

a very effi cient solution to profi t extraction. It is obviously

crucial to any structure that payments to investors be made

gross and not subject to any withholding tax applying in

Ireland. Investors can rely upon an Irish domestic exemption

from withholding tax for SPVs, which permits interest

payments made to a person resident in an EU member state

(other than Ireland), or a country with which Ireland has a

double tax treaty, (a relevant territory) to be made free from

withholding tax, provided that the recipient of the interest

does not carry out a trade in Ireland through a branch or

agency with which the interest payment is connected. This

exemption applies automatically without any application

being required. As stated above, Ireland has an extensive

network of double tax treaties.

This exemption and other exemptions – for example, for

interest paid on quoted eurobonds or commercial paper in

certain circumstances – are available as a matter of Irish

law and are in addition to the usual tax treaty exemptions

that may be available provided appropriate procedural

formalities are followed.

There is a specifi c exemption from Irish stamp duty for the

acquisition of aircraft or any interest or share in aircraft. If

the aviation lessor is structured as a Section 110 company

and provided it remains so, stamp duty will not apply on the

issue or transfer of securities issued by it.

Typically any VAT suffered by an Irish leasing company

(whether a trading company or the newer Section 110

companies) will generally be fully recoverable. In any event,

a cash fl ow advantage may be obtained from the fact that

Irish VAT legislation confirms that management services

(which includes portfolio management services) supplied to

an SPV falling within Section 110 can be supplied exempt

from Irish VAT. This exemption from VAT strengthens

Ireland as a location of choice, as recent European Court

decisions have confi rmed that these services are otherwise

within the VAT net.

As a general rule, the taxable profits of an Irish trading

company follow the accounting treatment. SPVs qualifying

as Section 110 companies can choose to calculate their

taxable profi ts using Irish GAAP as it existed in December

2004, unless they elect to use the GAAP applicable for

financial accounting purposes. This applies to existing

and new SPVs and can be useful in certain structures as

it eliminates the risk of a change in accounting rules and

generally solves any issues raised by IAS, such as potential

timing issues in the recognition of income and expenses.

The extension of the Section 110 regime to the leasing

sector is a very welcome addition to Ireland’s status as the

choice of destination for aviation leasing companies. This

new regime will operate side-by-side with existing structure

for leasing. Together with Ireland’s history in aviation

finance and leasing, its wealth of expertise in both areas

and its membership to the Organisation for Economic Co-

operation and Development (OECD) and the EU, the future

looks bright for aviation fi nance in Ireland. ■




WESTERN AND EUROPEAN OEMS AND suppliers see

the potential in China — and the profi t it could deliver.

But while business opportunities beyond the ‘Big Four’ airframe

OEMs (Boeing, Airbus, Bombardier and Embraer) signal reward,

they are also fraught with risk.

China’s AVIC is already flying the ARJ-21, a 70-90 seat

regional jet that competes against the incumbent 70-90 seat

E170/175/190, Bombardier’s CRJ-700/900 and Mitsubishi’s

new MRJ.

The ARJ-21 uses Western engines (GE’s CF34) and systems.

It looks like a mini MD-80 (which was assembled by Shanghai

Aviation Interests in the 1980s) but is heavier than its

competitor and almost certainly not as economical.

Furthermore, the ARJ-21 is years beyond its original entry into

service (EIS) date. It is now slated for late this year, yet critics

question whether even this delayed timeline will be met.

COMAC, affiliated with AVIC, is developing the mainline

C919, a 150-200 seat aircraft that bears a notable resemblance

to the A320. Specifications are similar but, like the ARJ-

21, the C919 appears (according to early data released by

COMAC) to be heavier. Like the ARJ-21, Western systems

are used extensively, but unlike the ARJ-21, the C919 has the

next generation engine — the CFM LEAP-X, and the promise

of 15 per cent lower fuel burn versus the venerable CFM56.

The ultimate fuel effi ciency improvement is unclear given the

sketchy specifi cations that have been released about the C919

and the suggestion that it will be heavier than the A320.

Regardless of the commercial viability of the two aircraft,

China’s goal to create a competitive aerospace industry means

Western OEMs and suppliers are scrambling to take part in this

emerging sector.

For example, Safran signed a joint venture (JV) in December

2009 with China to develop components and eventually an

indigenous engine for the C919; GE formed a JV in January

2010 with AVIC for technology transfer for avionics; Airbus

built its A320 assembly plant in Tianjin and contracted with

China to provide composites for the new A350; Embraer has an

E145 assembly plant in Harbin; and Bombardier uses Shenyang

companies to build fuselage sections for the Q400 turbo-prop

and the new CSeries.

China now has the largest world economy behind the US and it is using this growth to make its commercial aerospace industry a national priority. Furthermore, its government is building airports at a pace so rapid, Western offi cials could only dream of matching it. China is now a crucial aviation partner, yet it is also notoriously secretive and a potential threat to the West’s aerospace sector. Are we playing with the enemy, or allowing caution to hold us back? Scott Hamilton reports.

Doing business with China: The risks and rewards




THE KNOWLEDGE TRADEIn a congressional hearing in May 2010, Daniel Elwell, VP for civil

aviation of the Aerospace Industries Association (AIA), testifi ed that China

recognises its need to rely on the global supply chain in order to compete

with an international aircraft.

“To produce viable, domestically-produced aircraft, China needs to

have access to these capabilities either within its own borders or through

imports,” Elwell testifi ed. But it added: “The Chinese government would,

of course, prefer the former to the latter.”

Members of the global supply chain are happy for new business but

by assisting the Chinese aviation market, Western OEMs and suppliers

are effectively supporting new competitors. Even more sensitive is the

prospect of China applying its rivals’ pioneering technical knowledge to

military projects.

Chinese officials have been ambiguous about this, at times

indignantly denying they would misuse this knowledge

or engage in industrial espionage, and at others, talking openly about such

technology’s dual use for civilian and military products.

Members of the global supply chain are happy for new business but by assisting the Chinese aviation market, Western OEMs and suppliers are effectively supporting new competitors. Even more sensitive is the prospect of China applying its rivals’ pioneering technical knowledge to military projects.




The political and corporate ramifi cations of either making or

admitting to these charges could be devastating. Yet The 2010

Report to Congress of the US-China Economic and Security

Review Commission is unambivalent. It states unequivocally

that China is taking civilian technology and applying it to

military development, sometimes in the same building.

Mary Saunders, deputy assistant secretary for manufacturing

at the US International Trade Administration (ITA), told a

congressional hearing in May 2010 that: “China has increasingly

required that joint ventures be established as a condition

for awarding manufacturing contracts. These joint ventures

typically involve some element of technology transfer by the US

partner. The intention seems to be for China to develop domestic

capabilities in sub-systems in addition to airframes.”

“Chinese fi rms have used their leverage to extract offsets —

agreements to transfer some of the aircraft production along

with related expertise and technology — as part of the deals,”

the report says.

“Priority will go to foreign suppliers that design and

manufacturer products with domestic companies in China,” an

unidentifi ed deputy manager of COMAC said in 2008.

The Chinese government is unapologetic about demanding

technology and JVs in exchange for the privilege of doing

business in China. Western companies have little choice:

comply or be cut out. In a meeting in December 2010, hosted

by the department of commerce of one US state promoting its

supply chain in China, companies present were told they had

to provide Chinese JVs with the latest technology and they

also had to assume China was going to take their intellectual

property regardless of contractual safeguards. This was the

price of doing business. To stay ahead of the Chinese, the

Western companies had to continually develop the next

generation technology, the companies were told.

Louis Gallois, EADS’ CEO, was quoted by London’s Financial

Times (FT) in January about China’s spying. Within 24 hours,

EADS strongly denied the report. (The FT characterised it as a

Gallois retraction.) In an unusual spectacle, Tom Enders, CEO

of Airbus (an EADS subsidiary), and a subordinate to Gallois,

six days later defended China.

Yet not long after Airbus opened its A320 assembly plant in

Tianjin, the press reported that Airbus had fended off at least

four major cyber attacks on the plant.

The transfer of knowledge is critical to the development

of China’s aviation sector. Many consider both the ARJ-21

and C919 as concept aircraft with which the Chinese will

learn all they need to in order to build the next generation of

commercially competitive aircraft.




THE NEED FOR PARTNERSHIPS WITH THE WEST “China currently lacks the technology and know-how for

completing such a diffi cult project,” the congressional report

says. Engines are a particularly challenging area.

“Despite progress in other areas of aviation, China’s aviation

engine sector remains an Achilles’ heel…. A major obstacle is

China’s inability to successfully develop and manufacturer an

advanced turbofan engine.…Without the ability to successfully

produce a turbofan engine, China will remain dependent upon

imported engines,” the report adds.

This makes the JV with Safran for the eventual development

of an indigenous engine particularly signifi cant.

The ARJ-21 has some 200 orders and options, including

a handful with the US-based lessor GECAS, and regional

airlines outside China. The C919 — still in its infancy with

a planned fi rst fl ight in 2014 and an EIS of 2016 — received

its fi rst orders at the Zhuhai Air Show last November — 55

fi rm and 45 options, a rather disappointing number given

the pre-show expectations of hundreds, as was forecast by

government offi cials.

Given the familial relationship between GECAS and GE

Engines (supplier of the powerplants on the ARJ-21 and

C919), the few orders from GECAS were not surprising.

Its order also aids the certifi cation of the aircraft by the US

Federal Aviation Administration (FAA). US president

Obama pledged in November 2009 “to try and expedite FAA

certifi cation of the ARJ21, potentially eliminating a key barrier

to future international sales,” according to the congressional

report of 2010.

“Chinese fi rms have used their leverage to extract offsets — agreements to transfer some of the aircraft production along with related expertise and technology — as part of the deals.”Report to Congress of the US-China Economic and Security Review Commission, 2010.




IMPLICATIONS FOR AIRBUS AND BOEINGThe decision by Airbus to set up an assembly plant in Tianjin

was somewhat controversial. From Airbus’ perspective, the

move was purely commercial: it supports Chinese sales.

Airbus has not overtaken Boeing in orders for single-aisle

aircraft — a market monopolised by Boeing.

Airbus’ Enders explained his company’s decision to co-

operate with the Chinese in a typically candid remark during

the Airbus Innovation Days media event in Hamburg, in 2009.

To paraphrase, he remarked that the Chinese are going to

develop a commercial aerospace industry and if Airbus did not

help, somebody else would.

So far, the venture is far more successful than the MD-80/

MD-90 assembly plant in Shanghai. The McDonell Douglas

plant assembled, virtually by hand, only some 40 aircraft

during its entire existence. When an AFM reporter visited

the plant in December 1988, it was by Western standards

extremely primitive and demanded so much power

that during daylight hours, electricity to other parts of the city

was rationed.

The A320 plant replicates the high-tech assembly line in

Hamburg and it is moving toward producing 48 A320s a year,

more than the MD-80/90 facility did in 10 years.

While Enders claims the skills needed to assemble an aircraft

are quite different to those needed to design one, both are part

of a large jigsaw.

Boeing has used the emerging competitors as a reason to seek

cost controls. During 2008’s 58-day strike against Boeing by the

International Association of Machinists (IAM), Boeing’s CEO,

Jim McNerney, sent an email to his staff explaining why Boeing

needed to lower costs. Among reasons was the emerging

competition from Japan, Canada, Russia and China.

What McNerney did not include in the email was that

Boeing’s JVs in Japan, China and Russia helped to create these

new competitors.

Japan designs and builds wings and wing boxes for the

787. Boeing has a major engineering design centre in Russia

and is China’s biggest aerospace customer, according to the

2010 report.

Among its Chinese suppliers are: BHA Aero Composites;

Chengdu Aircraft Corp; Hafei; Shanghai Aviation Industries;

Shanghai Commercial Aircraft and Xian Aircraft.

McNerney has ties to China that pre-date his tenure at Boeing.

During his long career at GE, he became president of GE

Asia-Pacifi c in Hong Kong in 1993 at a time when there were

no operations in China. McNerney headed the effort to enter

China and by April 2004, after he left GE, the company did

$4bn in business there. After McNerney became CEO of 3M,

a non-aviation company, he continued his interest in China,

expanding 3M’s business relationships there.

Yet McNerney does not believe Boeing’s close ties with China

are leading to the transfer of sensitive technological knowledge

or threat a Western dominance in innovation.

During Boeing 2010 earnings call in January 2011, New York

Times’ reporter, Christopher Drew, asked McNerney how he

feels about GE and other suppliers transferring technology like

the 787 core computing system to the C919, to which McNerney

answered: “I don’t think that threatens the proprietary nature

or innovativeness of our airplanes here. If I did, I would raise

my hand, but I don’t see that. And we all have to strike a

balance between protecting our IP [intellectual property] and

innovation. And I don’t know what’s going on in the minds of

the GE folks. And I don’t want to try to represent it either.”

The 2010 Report to Congress of the US-China Economic

and Security Review Commission perhaps sums up the

current state of affairs best: “Building upon the knowledge

gained from previous joint ventures with foreign aviation

manufacturers, as well as the experience acquired during

the development of the ARJ-21, the C919 is China’s premier

commercial aviation project.” ■

“Despite progress in other areas of aviation, China’s aviation engine sector remains an Achilles’ heel…. A major obstacle is China’s inability to successfully develop and manufacturer an advanced turbofan engine.”Report to Congress of the US-China Economic and Security Review Commission, 2010.





69


RECESSIONS USUALLY PROVE TO BE

catalysts for deal-flow in the spare engine

market, as airlines seek to bolster balance sheets

by selling and renting back powerplants. That is

exactly what occurred during the fi rst downturn

of this century and many lessors were expecting to

add to their asset base in the run-up to the second.

That the latest drop in the cycle coincided with the

worst fi nancial meltdown in living memory would

have only heightened their appetite.

However, far fewer engines than expected were

offered for sale and leaseback deals. Low interest

rates and fuel prices, allied to the fact that many

airlines had already off-loaded spare engines

in the previous recession, meant there was far

less incentive for operators to sell, and far less

liquidity pressure on airlines than there had been

in the past.

“When we hit this particular recession, there

were some differences in how airlines handled

their on-balance-sheet engine fleets. Airlines

horded cash because they were not clear how

and if banks would lend to them. There was

AIRCRAFT FINANCE GUIDE 2012

never a sudden infl ux of engine sale-leaseback opportunities,

but rather a steady flow that did not exhibit any market

pressure. Airlines were also using different means to raise

cash like signing up to credit card and receivables deals,” says

Abdol Moabery, chief executive of aircraft and engine lessor

GA Telesis (GAT).

Since the recovery began, the situation has improved.

British component support specialist, AJ Walter Aviation

(AJW), moved into engine leasing in early 2011. Its director of

aircraft engine services, Steve Williams, describes “a growing

trend to move engines off the balance sheets”, particularly

among start-up airlines which traditionally outsource non-

core activities. Assisting this trend, he says, has been a rise

in funding opportunities that allow lessors to pursue sale and

leaseback deals.

A return to profi t for many airlines in 2010 also saw tentative

capacity increases, increasing the need for spare engines.

Bobby Janagan, general manager of the lessor, Rolls-Royce

and Partners Finance (RRPF), says: “Sale-leaseback is picking

up. It’s not up to 2007/8 levels because people are taking new

deliveries and there’s always a time-lag between the economic

recession and the aviation recession so we are only now

coming out of that bottom line.”

The niche business of engine leasing used to be somewhat counter-cyclical, as lessors exploited hard times to buy assets and drive sale and leaseback deals. However, more leasing companies have entered the market and many airlines were either unwilling or unable to offl oad spare engines in the last recession. Alex Derber looks at the consequences.

Engine leasing update




RATES AND RESIDUALSTight availability of some engine lines during the downturn

meant that their lease rates held up better than expected.

Janagan reports a disparity between widebody and

narrowbody engine trends, with widebody engines continuing

to command pre-crisis rents throughout the downturn due

to a shortage of supply, while the opposite held true for

narrowbody powerplants. “In the narrowbody market there

were a lot of speculators, both independents and airlines that

bought engines, so there was overcapacity in that market, and

that forced rental factors down in 2009/10,” he says.

Despite the setback, Janagan says that narrowbody engine

lease rates have now almost completely recovered. This is

even true of older engine types, according to Williams at AJW.

“There is a shortage of good quality lease engines in the market

and companies are reluctant to invest in the overhaul of lease

engines such as the CFM56 -3 because they are not sure of the

future demand profi le. This then places an additional premium

on the engines that are currently in circulation,” he says.

Residual values for older engines have also recovered, despite

the approaching introduction of new technologies such as

Pratt & Whitney’s geared turbofan and a new variant of the

bestselling CFM56.

According to Moabery, lease factors — the cost of rent as a

proportion of the engine value — remain under one per cent

for newer engines, and between one and two per cent for

older types.

“Residual values for narrowbody engines have endured

overall,” he comments. “While there were some distressed

situations in 2008 and 2009 that led to low-priced engine

availability, almost all have recovered, including the CFM56-3

and JT8D-200 series, which were hit the hardest in that period.”

There may also be little near-term danger of new equipment

damaging residuals, as Janagan points out: “Until aircraft get

parked and torn down, spare engines are required to support

the fl eet so values are likely to hold. Therefore we don’t see

a major deterioration in asset prices because the A320 neo is

coming.”




THE LEASING MARKETTraditionally, engine leasing has been dominated by three large

independent players: Engine Lease Finance, GA Telesis, and

Willis Lease Finance plus manufacturer-affi liated lessors such

as RRPF and GECAS Engine Leasing. In recent years, there

have been several smaller entrants to the market, including

AJW, ILFC (via its Aeroturbine subsidiary), Aersale and

Macquarie Aviation Capital.

One of the ‘big three’ independents, Florida-based GA Telesis

has a portfolio of roughly 65 engines, including: CFM56-3C1;

CFM56-5A1/F; CFM56-5B; CFM56-5C3/F; CF34-3A1; CF34-

3B1; CF6-80C2B1F; CF6-80C2A2; CF6-80C2A5; CF6-80C2B6F;

PW4056; PW4077; JT8D-219; and V2500.

GAT, which also leases aircraft and provides component

support, offers short- and long-term leases ranging from 60 days

to 60 months. Moabery says that the company currently has

eight engines off lease.

A perceived problem for independent lessors in the past has

been total care maintenance. On selling engines to airlines

— often at a heavy discount — OEMs would seek to tie their

customers into all-inclusive repair contracts. However, this

made it diffi cult for an airline to sell and lease back an engine

because the lessor would also demand a maintenance reserve

to compensate for the hours and cycles burned off an engine,

effectively forcing the airline to pay twice.

Despite the rise of total care, however, Moabery appears

unconcerned: With so many emerging markets, it is likely

that younger airlines do not want to deal with engine fleet

management, so it can make sense to hand that over to an OEM

or third party. On a dollar for dollar basis, an airline is defi nitely

better off not going with a total care programme as it limits fl eet

fl exibility and the maintenance reserves are built in, and paid

over the long term. I don’t think airlines look at total care as an

alternative to leasing and paying maintenance reserves. In fact,

we have leases with maintenance reserves with airlines under

total care programmes.”

With a portfolio of 350 engines, RRPF is among the largest

engine lessors in the world. A 50:50 joint venture between

Rolls-Royce and GATX Capital, RRPF sources its engines

from the open market and directly from Rolls-Royce the

manufacturer “at full list price”, according to Janagan. One-

third of the company’s portfolio supports Rolls-Royce’s total

care business, which guarantees spare engine support, while

the rest are leased directly to third parties.

That split may alter as airlines struggle to raise fi nance for

new engines from banks that are more willing to lend to a

stable operating lessor than an operator exposed to the myriad

pressures and crises of the air transport industry. “Rolls-Royce

used to bundle together spare engine services with engine sales.

Now we are trying to do a separate lease so the engine can be

sold to whomever,” says Janagan.

Unlike GECAS Engine Leasing, which stocks non-GE lines,

RRPF only offers Rolls-Royce and IAE engines. “Engines

need a lot of technical understanding in terms of pricing,

maintenance and risk — we don’t want to speculate by

being on other engine types where we don’t have that much

knowledge,” explains Janagan.

In other ways, though, Janagan notes the similarities between

RRPF and other types of lessor: “We’re all doing one job,

which is fi nancing assets for airlines, and the market is getting

bigger because the price of engines is going up and banks are

reluctant to lend directly to airlines. It’s about who offers the

best package, which is a combination of the return conditions,

maintenance requirements and the cost of the rent.”

Since launching its engine leasing business in January 2011,

AJ Walter Aviation has built up its portfolio to 20 powerplants,

all CFM56 variants. Of these, half are on conventional leases,

while half are running off ‘green time’. Though the company is

concentrating on the CFM56 in the short-term, it plans to add

CF680, V2500 and PW4000 engines in the future.

To support its new leasing business, AJW announced in

February 2011 that it was opening an engine services division

in Wales. The company’s CEO, Christopher Whiteside, said at

the time that he anticipated $50m worth of business within the

division’s fi rst 12 months.


CONTACT US TO: LEASE • BUY • SELL • POOL • EXCHANGE

AOG 24/7 SUPPORT

www.willislease.com +1.415.408.4769

WILLIS LEASE FOR ALL YOUR ENGINE NEEDS

ENGINE LEASING

• Conserve your capital• Customized lease terms

to suit your requirements• All engine types• Short-term, long-term, AOG

POOLING

• The means to keep your spares working for you • Easy access to spares when you need them • Online leasing reservation system• Pre-approved terms and conditions

TRADING

• Buying and selling engines• Purchase / leasebacks• Convert non-liquid assets to cash

ENGINE LEASING.PLANE AND SIMPLE.



COMPETITIONDespite the small infl ux of players such as AJW, engine leasing

remains a niche market, requiring expert fi nancial, technical

and risk analysis. As such, it is unlikely to ever attract the glut

of private equity and institutional-capital backed vehicles that

entered the aircraft leasing market in the mid-2000s.

GAT’s Moabery describes some of the pitfalls awaiting

speculative investors: “Securing an engine on lease is very

different to doing so with an aircraft. If a transaction is not

structured properly an investor can lose control or ownership

of their engine in certain jurisdictions. There are also issues

like performance management, foreign object damage and

PMA parts.”

Parts manufactured by parties other than the engine

manufacturer (PMA parts) continue to be a divisive issue: PMA

suppliers see lessor acceptance as a vital step towards industry

acceptance, but lessors normally insist that no PMA parts (or

DER repairs) are installed on their assets in case they damage

the residual value.

“All of our leases say there shouldn’t be any PMA parts. As an

operating lessor we put greater focus on our residual value and

that is factored into the lease rental. If we allow people to put in

PMA parts then the rental has to go up to offset the reduction in

residual value,” says Janagan at RRPF.

Another bone of contention is withholding tax, presently

applied to engine leases but not to aircraft. Janagan outlines

their fi nancial impact: “As more people are starting to lease

engines it’s becoming a major issue and cost to the airline.

In some countries it’s fi ve per cent and in some countries it

goes to 20 per cent. That’s quite a lot to pay each month on

top of rentals.

“If aircraft are treated as an exempt category for withholding

tax purposes, why not treat the next most expensive asset class

— spare engines — the same?” ■


CONTACT US TO: LEASE • BUY • SELL • POOL • EXCHANGE

AOG 24/7 SUPPORT

www.willislease.com +1.415.408.4769

WILLIS LEASE FOR ALL YOUR ENGINE NEEDS

ENGINE LEASING

• Conserve your capital• Customized lease terms

to suit your requirements• All engine types• Short-term, long-term, AOG

POOLING

• The means to keep your spares working for you • Easy access to spares when you need them • Online leasing reservation system• Pre-approved terms and conditions

TRADING

• Buying and selling engines• Purchase / leasebacks• Convert non-liquid assets to cash

ENGINE LEASING.PLANE AND SIMPLE.




Trends in engine lease ratesAs the market rises from the ashes of another recession it is time for the analysts to assess the damage, tweak the forecasts and welcome a new set of players to the table. Dr. Stuart Hatcher, head of valuations and modelling at IBA Group plays his part in the assessment as he evaluates engine lease rates.


THE MARKET IS RAPIDLY GATHERING pace and is fi lled

with the promise of what is to come. With their forecasts,

the OEMs have provided another glimpse of the future, airlines

have placed the orders, and lessors have contined to do battle

with new lessors as sale and leaseback margins are pushed to

the brink. Transaction volumes are key to many of the big lessors

as they know that new entrants and experienced competitors

outside the top fi ve will not be able to capture the best credits.

This leaves the others to take risks on operators with lower

credits and perhaps accept older equipment in order to achieve

the appropriate margins. In addition to this, the top fi ve are also

back to selling ‘packets’ of aircraft to other lessors in order to

prepare for new deliveries and to spread their risk. The buyers

may not get the best terms, but at least they are striking deals

with airlines that hold good credit.

IBA sees something similar in the engine leasing market. For

many years, OEM lessors and big independent companies such

as Willis Lease Finance and ELFC have dominated the sector.

However, in anticipation of market growth, new money is

pouring in from banks, KG funds and numerous equity funds,

each wanting to buy a piece of the action. Of course, none of

this is new – indeed it happened from 2005 to 2008 – but it

does highlight the willingness of many typically non-aviation

entities to invest in this business.

As with aircraft lessors, the majority of engine deals are

through the sale of small portfolios with leases attached. The

engines are typically older but it is still a win-win situation;

the lessor is able to cycle the older assets out and yet retain the

management fees, while the buyer can invest in a market with

potentially much higher returns.






THE THREE TIERS OF LESSORSThe engine leasing market can be split into several different business

models, each with its own targets and expectations regarding a return

on investment. How these different entities do business can also have a

considerable effect on how lease rates perform.

At the top level are OEM lessors. The primary focus for the OEM lessor is to

support its parent by helping to manage supply and demand. They do this by

absorbing over-production, providing short-term leasing to cover the OEM’s

fl eet-hour programme and maintaining market coverage by undercutting the

competition. To spread their own risk, the OEM lessors often sell portfolios to

independent lessors, MROs and investment groups.

Covering the middle ground are the large independent lessors and MROs

who will either buy engines from the OEM, the OEM lessors, or through sale

leasebacks with airlines. These companies will offer both long- and short-

term leased engines at rates that are typically higher than those offered by the

OEM lessors. Some cheaper deals are still available for good credits or long

lease terms, or where a large MRO contract is part of the process.

The fi nal group includes the rest of the market and satisfi es much of the

demand. This vast number of smaller lessors, banks and equity funds will

typically buy their engines from the OEM lessors and large independent

lessors with leases attached. The investment quality of the transaction will

often depend on volume and margins. Given also that many companies will

require a shorter return on its investment period, many of the engine deals

contain older engines and less credit-worthy lessees to keep rental margins

above one per cent per month.

THE ENGINE TYPES AND THEIR RATESThe most commonly leased engines are the

CFM56-5B, CFM56-7B and V2500-A5 families

of engines, which power the A320 and 737NG

aircraft. With over 16,500 engines in circulation

(fi tted and spare) powering nearly 8,000 aircraft

across nearly 500 airlines, the market remains

very liquid and a swarming battleground for

lessors.

This colourful market contains engines of many

different thrust levels and upgrade statuses which

can lead to a considerable contrast in rentals.

While the rule of thumb for new engine rentals

remains at around 0.82 per cent versus list prices,

the market for the mature and less fuel-effi cient

engines has displayed a marked level of volatility

over the past two years.

Over the past 12 months, we have seen many of

the mid- to long-term monthly lease rates rise for

new CFM56-5B Tech Insertion engines to today’s

rates of $60,000 for the -5B5/3 (A319), to $75,000

for the -5B4/3 (A320) and $80-85,000 for the

-5B3/3 (A321). The more mature P-designation

engines fair less well with rates of $40-70,000

Now that the availability of spare engines has increased, lessors will want to down-sell their exposure, which may lead to a drop in rates. Currently, these are reasonably high compared to the average market value of around $55-65,000. Going forward, we expect this market to decline.




for the same thrust range as above. In some instances, we

encounter some lower (and much higher) rates but there is

often a much larger deal at play.

The competing V2500-A5 engines tend to fall within similar

boundaries for the new engines although an excess in the

market did lead to a slight softening of rates last year. A new

V2533-A5 Select engine is expected to lease for around $85,000

a month, while a 10-year-old non-Select engine leases at closer

to $65-75,000 and even lower when on shorter terms. The more

common V2527-A5 variant should lease for around $60-70,000.

For the CFM56-7B engines that power the 737NG family, rates

tend to follow a similar pattern although pound for pound, the

-7B engine would often fair a little better than the -5B model.

As these engines are the most numerous, shopping around

can lead to signifi cant variances in rental rate. And as some

recent short-term deals that performed at much lower rates

suggest, MROs and OEM lessors will go a long way to shut-out

the competition.

This space will prove interesting following the launch of

the Leap-X and PW1000G engines. We envisage that the

older variants will suffer fi rst as fuel effi ciency and on-wing

reliability will woo most airlines wishing to protect their yields.

We expect another 8,000-10,000 engine deliveries within the

current narrowbody sector before the first A320 neo enters

service and so it will be another fi ve to 10 years from today

before the current standard engines feel strong competition.

The growing population of the latest standard engines has

already (marginally) affected rates for the older variants and we

expect that to continue indefi nitely.

A concern for many is the effect on V2500-A5 engine values

and rates given that International Aero engines (IAE) has not

provided a new core in the same vein as CFM International

(CFMI) and Pratt & Whitney. Despite this, we still expect IAE

to offer an upgrade programme to incorporate at least some of

the savings promised by others, as they will not want to lose

market share.

The graph below shows a forecast of the fitted engine

population for the A320 until 2030. Given the number of

engines that need replacing and an engine production level

of only 80-100 a month, it would take between 11 to 14 years

just to replace the existing fleet, let alone grow the world

fl eet. Therefore, engines that are kept in-line with the current

modifi cation status will still perform the best.

The next most prolifi c area is the ageing widebody market,

which utilises the CFM56-5C, the 94-inch version of the

PW4000, and the CF6-80C2 engines. Most lessors manage

signifi cant quantities of these engines and they trade regularly

in the leasing market. These are probably the largest engines in

which most lessors will comfortably invest. Their shop visit

costs are not outlandish and the LLP management for engines

averaging over six hours per cycle means there are several shop

visits between the replacement of parts.

Historically, the most stable engine has been the CF6-80C2

(FADEC). It is the most widely used widebody engine and is

relatively reliable and predictable. Despite a drop in 2008 to

2009 when many 747s were parked, the monthly rates for mid-

to long-term leases is still around $55-65,000.

The CFM56-5C market has been a little agitated recently

because of increasing part-outs of A340 aircraft. Until recently,

values for the -5C4 variant were reasonably strong as the

engine’s relatively short time on-wing meant the engine would

often be on lease.

Now that the availability of spare engines has increased,

lessors will want to down-sell their exposure, which may

lead to a drop in rates. Currently, these are reasonably high

compared to the average market value of around $55-65,000.

Going forward, we expect this market to decline as more of the

long-range twins enter the market. As the 787 fi nally makes

its appearance – followed by the A350 and more 777s – we

expect the retirement of more A340s, 767s and 747s and thus

an increase in the supply of spares.




SERVICING THE SMALLER MARKETSAt the other end of the market, we find the engines that

power the lighter aircraft. Many of these engines suffer from

the same market woes as the host aircraft, with the exception

of the larger CF34 derivatives, which are fi tted to Embraer’s

E-jets and larger Bombardier CRJs. In particular, the CF34-10E

series, which is fi tted to E190 and E195 aircraft, are in very

high demand and have lease rentals in the range of $45-70,000.

There is very little availability for the CF34-8C5 and CF34-8E5

and so rates are around $37-45,000 a month. In both cases, the

lower rates are indicative of longer terms to better credits and

not indicative of the market rate.

As much of the wind has been stripped from the C-Series’

sails it is diffi cult to foresee where this market is evolving. With

much of the market emphasis on larger aircraft and diffi culty

in achieving fuel effi ciency in smaller engines, the CF34-10E

may remain a dominant player until we see what the C-Series

can do. We expect that it is more likely that the smaller and

less effi cient CF34-8 engine will feel the pressure sooner with

the appearance of the MRJ and the Pratt & Whitney Geared

TurboFan.

The largest engines that power the long-range twins – the

A340-500, A340-600 and A380 – are still controlled by the

OEM lessors. There are three players within this sector; Rolls-

Royce with its Trent family, General Electric (GE) with the CF6-

80E and GE90 families and Pratt & Whitney (P&W) with the

PW4000-100 and -112 families.

Very few lessors own many of these engines, partly because

the purchase prices are very high and partly because most

of these engines are enrolled in fl ight-hour agreements with

the OEM and therefore the reserves are not held by the lessor.

Also, OEM lessors hold the lease margins low. For example,

despite a list price in excess of $30m, the GE90-115B engine

(which powers the 777-300ER) only leases for around $180-

210,000 as opposed to the $250,000 rate required to pay for

the fi nancing costs.

Some lessors have been able make this work but have

required a more realistic purchase price. Similar problems

have been encountered regarding other large engines but to a

lesser extent as rates have stayed higher. In this sector, the most

common engines we encounter are those for the A330. In order

of market share, these include the Trent 700, the CF6-80E1, and

the PW4000-100 engines. In all cases, the mid- to long-term

monthly rates range between $110-140,000 and depend on

availability, the thrust band and the lessor.

Looking forward, we believe that as more emphasis is placed

on the fuel and maintenance cost effi ciency of the long-range

twins, the A330 and 777-300ER market will remain reasonably

buoyant with more pressure placed on the older 777s, A340-

500 and A340-600 fleet. That said, with many of the larger

engines controlled by the OEM lessor, any pressure will remain

fairly well hidden from the rest of the market.

Apart from an increase in fi nancing from banks and despite

the substantial growth potential, the large engine market will

continue to be controlled by the OEMs. ■

TWO TO FIVE-YEAR TERM MONTHLY RATES FOR ENGINES FROM EACH SEGMENT MODEL AIRCRAFT LOW TYPICAL HIGH

CFM56-3C1 737classics $20,000 $32,000 $40,000

CFM56-5B5/3 A319-100 $45,000 $52,000 $62,000

CFM56-5B4/P A320-200 $50,000 $60,000 $65,000

CFM56-5B4/3 A320-200 $60,000 $70,000 $75,000

V2527-A5 A320-200 $55,000 $60,000 $75,000

V2533-A5 Select A321-200 $60,000 $70,000 $85,000

CFM56-7B22 737-700 $40,000 $55,000 $65,000

CFM56-7B24/3 737-700/800 $60,000 $68,000 $80,000

CFM56-7B26 737-800 $60,000 $68,000 $80,000

CFM56-7B26/3 B737-800 $70,000 $78,000 $83,000

CF34-8C5 CRJ700 $35,000 $37,000 $45,000

CF34-10E6 E195 $45,000 $60,000 $65,000

CF6-80C2B1F 747-400 $55,000 $63,000 $65,000

PW4060 767-300ER $55,000 $65,000 $68,000

CFM56-5C4 A340-300 $50,000 $60,000 $65,000

GE90-94B 777-200ER $140,000 $150,000 $190,000

GE90-115B 777-300ER $185,000 $210,000 $215,000

Trent 772B A330-200/300 $110,000 $120,000 $140,000

PW4168A A330-200/300 $110,000 $120,000 $140,000

CF6-80E1A3 A330-200/300 $110,000 $120,000 $140,000

The growing population of the latest standard engines has already (marginally) affected rates for the older variants and we expect that to continue indefi nitely.

Leasing engines worldwide.

Rolls-Royce & Partners Finance

Rolls-Royce & Partners Finance has more than 340

engines worldwide, representing over $2.5 billion

in market value - the largest worldwide portfolio of

Rolls-Royce and IAE engines. We have a proven track

record and over 20 years experience in tailoring spare

engine solutions, managing operating leases, sale

and leaseback and engine sales. This delivers the

highest level of technical, financial and leasing expertise

in the market today. Our financial power provides

customer benefits across our global network including;

reduced risk, cash flow preservation, the release of

engine equity, minimised residual value exposure and

engine acquisition financing.

Trusted to deliver excellence

http://rrpf.rolls-royce.com/RRPF/+44(0) 207 227 9142

AirlineFleetAd.indd 1 02/03/2011 13:28AFG Yearbook 2012.indd 78 07/09/2011 13:55

Leasing engines worldwide.

Rolls-Royce & Partners Finance

Rolls-Royce & Partners Finance has more than 340

engines worldwide, representing over $2.5 billion

in market value - the largest worldwide portfolio of

Rolls-Royce and IAE engines. We have a proven track

record and over 20 years experience in tailoring spare

engine solutions, managing operating leases, sale

and leaseback and engine sales. This delivers the

highest level of technical, financial and leasing expertise

in the market today. Our financial power provides

customer benefits across our global network including;

reduced risk, cash flow preservation, the release of

engine equity, minimised residual value exposure and

engine acquisition financing.

Trusted to deliver excellence

http://rrpf.rolls-royce.com/RRPF/+44(0) 207 227 9142

AirlineFleetAd.indd 1 02/03/2011 13:28AFG Yearbook 2012.indd 79 07/09/2011 13:55



Current trends in the used aircraft marketWithout doubt, demand for used aircraft has improved over the last 12-18 months and over the years, there have been several signifi cant trends in the evolution of used aircraft dispositions. Pete Seidlitz, president of Bristol Associates, examines the changes.




ANALYSIS OF THE USED AIRCRAFT market shows that

things are improving but even the best analysis can be

somewhat deceiving. For example, according to Ascend, at the

time of writing there were 54 747-400s shown in storage, but

after subtracting aircraft that are either under maintenance,

being reconfi gured or actively being parted-out that number

drops to 20 aircraft. Many of these (such as those belonging to

British Airways) are being kept as reserves and are not being

actively marketed.

According to Ascend’s fi gures, there were approximately 815

used narrowbody aircraft (A320/737NG families) sold during

July 2009 to July 2010. During the same period in 2010-2011,

the number of sales jumped to 1,235; that is a 50 per cent

increase. Even widebody types such as the 747 experienced a

25 per cent increase in sales and a 15 per cent increase in lease

transactions. While this is encouraging, it does not refl ect the

pricing at which those sales were executed.

As an aircraft remarketing firm, our involvement in the

industry indicates that while there is improved liquidity

pricing has not changed measurably — indeed, it had probably

eroded from the previous period. There is underlying logic

to this; over time, many owners have been able to bring their

book values down to a level where they can now mark price to

market for selling purposes and actually affect trades.




HISTORICAL TRENDSTwenty-fi ve years ago, used aircraft traded on a fairly simple

supply and demand basis. First-tier carriers typically bought

only new aircraft and pushed older aircraft into developing

markets. Residual expectations were not high. Information

was less accessible prior to the introduction of the internet and

mobile phone technology and there was value in being able to

fi nd and match an aircraft seller and a buyer. Today, the market

is much more effi cient and it is much easier to determine both

suppliers and potential users.

Over the years, the industry has become more focused on the

maintenance and technical attributes of a given asset. These

considerations include the variant, powerplants, avionics,

weights, and aircraft lineage. As salvage became an acceptable

outcome for an aircraft, scrutiny of the asset was drilled down

into the specifi c parts and components — thus heightening the

importance of precise maintenance records. The rise of leasing

companies further intensified this need as lessors became

exposed to the costs involved in transitioning aircraft from one

user to another.

While some things have changed over the years, others have

not. One key to liquidity in the aftermarket is still to have a

large operator base for a specifi c type. Boeing’s 737 Classics still

trade fairly readily, even though many are as old as 25 years.

As the type has moved down the food chain of operators it has

created a number of additional options for placing incremental

aircraft. On the other hand, the market for old F100s is

constrained by a small original operator base and the attendant

issues in accessing spares globally (versus Boeing or Airbus).

Another factor that continues to affect values is fuel.

Increased fuel prices continue to reduce the desirability of

older technology aircraft and push operators to younger,

more fuel efficient equipment. It significantly contributes

to the shortening of an aircraft’s useful economic life and it

has dampened demand and eroded pricing for four-engine

widebodies such as the A340 and 747. Yet, there is always a

market for less effi cient aircraft if pitched at the right price.

NEW AIRCRAFT AVAILABILITY AND BIFURCATED MARKETSWhile reviewing remarketing trends over the past 12-18

months, we have observed that several market factors have

increased their impact on used aircraft. One obvious change

over the last several years has been the aggressive production

rates maintained by both Airbus and Boeing. Unlike previous

down cycles, recent rates were not significantly reduced.

In the past, we typically competed with other providers of

similar used aircraft types in a given campaign. More recently,

we competed with new aircraft as well — either via the

manufacturer itself or more typically via a leasing company.

Pricing has become so aggressive on new aircraft that they

often provide a very attractive alternative, particularly in an

unstable fuel environment.

As lessors rent new or quite new aircraft to airlines with

increasingly weaker credits, it will be interesting to see how the

economics of those deals work out. It is our feeling that many

of these deals will unwind over time. While a small carrier

in a developing nation would love to have new technology

equipment, in many cases they do not have the resources

to efficiently operate and maintain new equipment, nor do

they have a suffi cient combination of utilisation and yield to

sustain the more expensive operation. Furthermore, lessors

and fi nanciers are now beginning to realise that transition costs

to the next carrier can be signifi cant and can radically change

the profi tability of a given asset, even in the event of a ‘friendly

default.’ While narrowbodies in particular (A320/737NG)

have a fairly wide user base and thus good liquidity in terms

of fi nding a replacement operator, factors such as down time,

low follow-on rates and delivery costs remain a potential drag

on the economics.

One trend that began several years ago and has accelerated

in the past 12-18 months has been the increased segmentation

of sub-markets, even within a given aircraft type. Factors such

as age, aircraft weights (and their upgradeability), existing

configuration, and any enhancements (such as winglets) in

many cases determine access to a given part of the market.

Probably the most dramatic change has been the increase in

chronological age as a determining factor of price. Age was

formerly viewed as a combination of chronological age and

the aircraft’s total fl ying time, but an older aircraft with low

times still brought a premium. Today the relevance of the year

of manufacture is a key consideration in any deal. However,

airframe times certainly remain a factor particularly in terms of

weighing hours/cycles remaining within major AD thresholds

in one unit versus another.

Also, aircraft are assessed in age-specifi c groups; 10-years-old

or younger; 10- to 15-years-old; and fi nally those greater than

20 years old. Values can vary dramatically between the aircraft

groups.Aircraft over 25 years of age are highly illiquid to the

point at which the most value is in the engines. While there

is generally a linear depreciation of value in each group, once

an aircraft moves to the next older bracket there is a signifi cant

one-time loss in liquidity and thus a loss in value.

A number of factors contribute to this phenomenon. A

major contributor is the various age restrictions that many

civil aviation authorities place on aircraft imported into their




country. Russia has a semi-formal 10 year maximum age and an

informal 15 year maximum; Brazil, China, Indonesia, India and

others each have 15 to 20 year limitations. This is particularly

problematic as these countries are historically some of the

largest takers of older, used aircraft. Their rules have several

effects, such as cutting off demand for aircraft older than 15-

to 20-years-old and increasing demand for younger aircraft.

We have recently been involved in a number of transactions in

which there has been signifi cant pressure to close a deal prior to

the aircraft reaching a certain age. Rising to a new age threshold

will further limit an aircraft’s potential market.

Financing is another particularly age-sensitive area. There

is abundant capital available for aircraft under 10-years-old,

aircraft of this age or younger are the most viable solution for

a leasing company seeking to build its portfolio quickly, and

for those who will use debt fi nancing to maximize the size of

its portfolio. The dramatic expansion of Export Credit Agency

(ECA) programmes — both to a wider variety of carriers as

well as to leasing companies — further augmented the capital

base for new, and in some cases used, aircraft. Lenders are

increasingly wary of long fi nance terms and high advance rates

against 10- to 20-year-old aircraft. The only exception would be

when a teardown could be comfortably incorporated into the

purchase price or implicit residual.

One would think that the impact of age on pricing would

lead to shorter fi nance terms refl ecting increased uncertainty

about future residual values. Shorter fi nance terms and lower

advance rates would logically lead to higher lease rates.

The Magellan Group provides integrated aftermarket aviation support services to the global airline industry. We sell, lease, and manage aircraft, engines, and spare parts to over 250 customers in 50 countries.

Airframe SupportRegional AircraftATR 42 / 72Dash 8 100 / 200 / 300 / 400Embraer 120CRJ 100 / 200

Commercial AircraftAirbus A300 / A310 / A320 / A340 / A330Boeing 737 / 747 / 757 / 767

Engine & Parts Sales & LeasingRegional EnginesAll PW100 series,including PW150 CF34 A1/B1 AE3007A1

Commercial EnginesCF6-50C2 / 80C2PW4000 CFM56V2500

Professional Services

Aircraft & Engine Management

Consignments & Purchasing of Surplus Inventory

Aircraft & Engine Leasing & Trading

Joint Ventures

Asset Management

Technical Advisory Services

www.magellangroup.netMagellan Aircraft Services • Charlotte, North Carolina • 704-504-9204 | Magellan Aviation Services • Shannon, Ireland • 353-61-474800

158527_Ad1.indd 1 9/29/10 1:03 PM


FPA_check 110_ATEM 110 21/02/2011 09:29 Page 3



GROWTH OF TEARDOWNSAnother interesting and growing sector in the aftermarket

is teardown. There are an increasing number of both large

and small companies in this position. Many of the larger

companies have developed sophisticated distribution

channels for airframe and engine parts and can effectively

monetise an out-of-service aircraft. Smaller companies can

opportunistically acquire an airframe or engine to satisfy spot

market opportunities.

Aircraft part-outs are another segments that is able to

attract fi nancing. This end of the business involves risks and

returns that are higher than more traditional leasing. A fi rm

with a track record in teardowns and the ability to manage

the inherent risk provides a logical place for private equity

and for those seeking above average rates of return. From a

remarketing perspective, we have seen end of life specialist

firms bid quite effectively against airline operators for

increasingly younger assets. We were involved in a 1999

A321 and 1994 777-200, both of which went to part-out. In

each case, the economics worked signifi cantly better for the

aircraft to be parted-out than for it to fl y.

The only caveat is that that parting-out is sometimes viewed

as a panacea. If companies in that sector are too aggressive

in acquiring aircraft for dismantling, it is possible that a

signifi cant oversupply in parts would follow.

The velocity of transactions in the used market has

increased over the past year and a half. We have seen our

market fueled by emerging demand in regions such as Russia

and Eastern Europe where both operational and tax issues

tend to favor used aircraft. Parts of Asia as well as Latin

America have also contributed to demand. Interestingly,

China and India — two huge growth markets — tend to

acquire new aircraft and are not particularly strong markets

for used aircraft.

The fates of both the new and used aircraft markets are tied

to those of airlines, which in turn are affected by national

and world economies. Given the current lack of clarity

about global economies, we are mindful of their impact on

our market sector. While the used market has improved and

continues to improve, the recovery is still fragile. ■


FPA_check 110_ATEM 110 21/02/2011 09:29 Page 3




FREIGHTER CONVERSION REPRESENTS ONE OF the

most interesting and challenging economic decisions for any

owner of a commercial jet, whether the aircraft is a narrowbody

or a widebody.

Factors such as the state of the cargo market, the availability

of aircraft for conversion, and what makes an aircraft a suitable

candidate (i.e. its age and operating history) are all highly

important. These must be considered with aircraft residual

values, the cost of conversion, the availability of fi nancing, and

even the state of the spare-parts market. Furthermore, when

an operator does choose to convert a freighter, it must decide

whether to own the aircraft or to lease it.

For instance, when it comes to choosing between buying

and converting an existing widebody aircraft versus leasing a

converted freighter from a third-party: “One of the countervailing

issues is the lack of ability to get fi nancing,” notes Robert Agnew,

president and CEO of Morten Beyer & Agnew. “There is not a

lot of credit around. You have to buy the aircraft, sit on it for 120

days [while it is being converted] — more if it is a widebody —

and all that while you have committed capital and you have to

pay for the conversion. It’s a costly process.”

A basic economic equation governs whether and when a

passenger aircraft is suitable for freighter conversion. It must

be old enough — or have accumulated enough fl ight cycles –

for the aircraft’s residual value to have declined to the point at

which the acquisition price, plus the cost of any maintenance

checks, plus the cost of conversion, leaves the owner with an

aircraft that it can either sell for a profit, or lease at a rental

which will achieve a suitable return on the owner’s investment

over a given time.

Cargo conversion: Choosing the right time For owners of commercial jets, deciding to convert passenger aircraft to freighters is an important economic move that involves several key variables. These can make a ‘yes’ decision compelling – or ‘no’ the only sensible option. Chris Kjelgaard reports.

Robert Agnew, president and CEO of Morten Beyer & Agnew




THE RIGHT TIME FOR CONVERSIONIn most cases, that ‘given time’ is 10 to 15 years for a

narrowbody or 15 to 20 years for a widebody. Commonly

accepted wisdom is that, in order to be suitable for a

conversion, a narrowbody aircraft needs to remain in operation

for 10 years or more after being converted, says Usman

Ahmed, senior analyst with IBA Group. For widebody aircraft,

the expectation is that the converted aircraft will remain in

service much longer than 10 years, because the widebody

typically will not have accumulated as many fl ight cycles as

a narrowbody jet before conversion, so its useful remaining

life will be longer. Calculations on conversion candidacy often

use the 50,000-cycle fi gure as a rough estimate for an aircraft’s

overall economic life, as structural safety rules on various

ageing-aircraft use this mark as a starting point for much

stricter inspection regimes that quickly eat into an aircraft’s

economic viability.

In many cases, residual values and cycle accumulation will

create a sweet spot for freighter-conversion suitability when

an aircraft has been in service from 15 to 20 years since new.

The suitable-age range can even be as much as 22 or 23 years,

depending on an aircraft’s fl ight-cycle accumulation, according

to Lars Becker, CEO of Airbus Freighter Conversions. In the

15 to 20 year age range, many narrowbodies have completed

30,000 to 35,000 cycles and many widebodies far fewer, so

they still have 15,000 cycles or more to go until they reach the

critical 50,000-cycle mark.

At the low utilisation rates at which cargo airlines typically

operate — particularly cargo integrators such as FedEx or

UPS — a remaining useful life of 15,000 cycles can keep an

aircraft in operation for well over 20 years. A freighter’s life

can be that long that the factors which eventually make an

aircraft uneconomic to operate are not a dramatic increased

maintenance costs associated with ageing-aircraft inspections,

but increasing fuel prices and stricter noise legislation.

Historically, notes Agnew, the ‘magic number’ at which

a widebody freighter conversion used to make most sense

economically was when the aircraft was 20- to 25-years-

old. “[Now] it seems to be a moving target — and it’s moving

earlier,” he says. This is due to factors such as fuel price — in

the heyday of the 747-400, jet fuel cost a small fraction of what

it does now and operators now want twin-engine widebodies

for most long-haul routes — and to the growth of export credit

financing to become a primary funding mechanism, which

has made new passenger aircraft widely available to smaller

carriers. Such airlines have become less interested in 15- to

20-year-old widebodies and for a time the residual values of

large widebodies fell sharply.

Until recently, that is. Because of a strong resurgence in the

cargo market following the crash of the industry, 747-400s have

become treasured candidates for freighter conversions. “All

of a sudden, [values] bounced back to a signifi cant percentage

of their old values,” says Agnew. “We saw a 20 per cent value

jump as people went back for 747s to convert to freighters.”

All things being equal, many 15- to 20-year-old passenger

aircraft will still be able to begin second lives as cargo aircraft

and make money for their owners and operators for long

enough to justify the costs of conversion. But not all things are

2 Cycle Per Day

Cycle Accumulation Frequency (annual)

Aircraft With

(Cycles)

Years to reach 50k at 5 day

rate


rate

16,000 65 54

18,000 62 51

20,000 58 48

22,000 54 45

24,000 50 42

26,000 46 38

28,000 42 35

30,000 38 32

32,000 35 29

34,000 31 26

36,000 27 22

3 Cycles Per Day


Aircraft With

(Cycles)


rate


rate

16,000 44 36

18,000 41 34

20,000 38 32

22,000 36 30

24,000 33 28

26,000 31 26

28,000 28 24

30,000 26 21

32,000 23 19

34,000 21 17

36,000 18 15

4 Cycles Per Day


Aircraft With

(Cycles)


rate


rate

16,000 33 27

18,000 31 26

20,000 29 24

22,000 27 22

24,000 25 21

26,000 23 19

28,000 21 18

30,000 19 16

32,000 17 14

34,000 15 13

36,000 13 11

1 Cycle Per Day


Aircraft With

(Cycles)


rate


rate

16,000 131 109

18,000 123 103

20,000 115 96

22,000 108 90

24,000 100 83

26,000 92 77

28,000 85 71

30,000 77 64

32,000 69 58

34,000 62 51

36,000 54 45

Frequency

Cycles Per Day

5 Days

6 Days

1 5 6

2 10 12

3 15 18

4 20 24

Annual Accumulation

Cycles Per Day

5 Days

6 Days

1 260 312

2 520 624

3 780 936

4 1040 1248

Credit: Precision Conversions, Boeing 757 Cycle Accumulation

Data only

Usman Ahmed, senior analyst, IBA Group

Lars Becker, CEO of Airbus Freighter Conversions




equal. For instance, notes Owen Geach, commercial director

of IBA Group, various developing countries have adopted

regulations that prevent imports of aircraft older than a certain

age. India usually bans imports of aircraft more than 15-years-

old, while China bans aircraft older than 20-years-old and

Nigeria aolder than 22-years-old.

Another problem, specific to and increasingly affecting

the 757, is that carriers and lessors have rushed to have their

aircraft retrofi tted with blended winglets. The 757 now seems

to have been ahead of its time. Boeing stopped producing the

aircraft not long before it took on a new lease of life with major

airlines as a transatlantic jet. The 757 remains in widespread

passenger service and the blended winglet adds enough

performance to make most passenger carriers want to have their

757 fl eets modifi ed. As a result, more than 300 757s have now

been fi tted with blended winglets.

However, says Brian McCarthy, VP of marketing and sales for

Precision Conversions:

“The alarming part for the afterlife of the airplane is that,

right now, you cannot convert a winglet-modified aircraft.”

Precision Conversions holds a 757-conversion supplemental

type certificate (STC) and is currently converting its 30th

757 to freighter confi guration. But through Aviation Partners,

Boeing controls all the engineering data on the 757’s blended

winglet and to date has not made it available to any of the three

757 freighter-conversion STC holders so they can perform

the analysis necessary to demonstrate that their STCs are

compatible with the major structural modification that the

installation of blended winglets represents.

“I would be quite concerned if I were an owner,” says

McCarthy. “Precision Conversions is working on a solution,

but [the winglet issue] is somewhat alarming for the value of

the airplane. Owners should pay special attention to that.” If

they wait too long to convert their 757s to freighters and in the

meantime have blended winglets installed, “residual values

will collapse immediately to scrap.”

“When certain 757s and 737 Classics get to the right age for

freighter conversions, the owner also has the option to part

them out,” notes Geach. This is particularly true for owners

wishing to realise a prompt return on their assets. IBA Group

estimates that, in the current market, for every two owners

wanting to convert their 15- to 20-year-old 737-300s or other

aircraft to freighters, 10 are choosing to tear their aircraft

down to release the value inherent in engines and aircraft

parts. As a result, many aircraft suitable for conversion —

‘feedstock’, as they are collectively known — will never

become candidates.

“Another trigger to sell a passenger aircraft” for freighter

conversion is if its passenger cabin requires a major

reconfiguration or refurbishment, says Wolfgang Schmid,

EADS EFW’s VP of sales, marketing and customer support.

This is a job that can cost $12m or more for a widebody, he says.

If the operator decides the aircraft is not worth such a major

investment, a clear alternative is to convert it to a freighter.

Summary of the Conversion Costs and Down Time

Models Conversion Providers Aquisition Cost Conversion Cost (US$) Resale Value

727 PF

Aeronautical Engineers. Inc $0.3m - $0.75m $1.2m (2007) $1.5m - $2m

Avborne Heavy Maintenance $0.3m - $0.75m $1.090m (2002) $1.5m - $2m

Hamilton Aviation $0.3m - $0.75m $1.2m (2002) $1.5m - $2m

737-200Aeronautical Engineers. Inc $0.3m - $0.75m $1.7m (2010) $1.5m - $2m

Stambaugh Aviation and Universal Cargo $0.3m - $0.75m $1.7m (2010) $1.5m - $2m

DC-9-30 Pemco World Air Services $0.3m - $0.75m unknown

L-100-20/30Lockheed unknown

Individual Operators unknown

TU-204-100 Tupolev $0.3m - $0.75m Factory Built

Narrowbody


737-300 AEI, IAI Bedek, Pemco $2m - $5m $2.3m - $2.5m (2010) $5.9 - $8m

737-400 AEI, IAI Bedek, Pemco $3.5m - $6m $2.9m - $3.2m (2010) $8.5m - $9.9m

MD-80 Aeronautical Engineers. Inc $0.5m - $3.75m $2.2m (2010) $2m - $4.5m

757-200 Boeing, Pemco, Precision conversions $6m - $10m (1986 - 1992) $4.9m (2010) $14m - $18m

A320 Airbus $6m - $13m (1988 - 1995) $4.1m (2010) $13m - $20m

A321-100 Airbus $13m - $19m (1994 -2001) $4.5m (2010) $20m - $26m

Widebody


A310-300 EADS $4.5m - $10m $8.5 - $9m (2011) $9 - $11.5m (1985 - 1992)

A300-600 EADS, B/E Aerospace $6.8m - $18.8m (1988 - 2002) $9.5m (2011) $18.5m +

767-300ER IAI Bedek, ST Aerospace $12.5 - $22m (1990 - 1998) $10m - $13m $27m - $38m

777-200ER Boeing $50m - $69m (1997 - 2002) $35m N/A

747-400 Boeing, IAI Bedek $18m - $27m (1989 - 1995) $25m - $30m $47m - $57m

Owen Geach, commercial director of IBA Group

Credit: IBA Group

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For a most efficient and cost-effective investment, turn toIAI-BEDEK one-stop Conversion & MRO House.

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IT’S ALL IN THE TIMING For freighter conversion to make sense, the

amount of available feedstock — the supply

side of the equation — must align with

customer demand. The process must also take

into account a temporal offset that depends on

the date of the conversion slot booked by the

customer and the duration of the conversion

process, which can vary from four to seven

months depending on the lead time for parts

and whether the aircraft being converted is

a narrowbody or a widebody. McCarthy says

Precision Conversions has now seen at least

two cycles of mis-match between supply and

demand, during which plenty of customers

want freighters but the feedstock is not available

for conversion. The scales then tip to having

many aircraft available but few customers who

want them.

Even when the stars do align, institutional

owners of converted widebody freighters can

still face an uphill battle in competing against the

economics of longer-lived new freighters if they

do not buy or convert their aircraft at the right

time, says Dan da Silva, VP of freighter conversion

for Boeing Commercial Airplanes.

Today, the overall cost of buying and converting

a 13- to 20-year-old Boeing 767-300ER can range

from $27m to $38m, according to Ahmed, but

da Silva says the cost might average $35m for an

aircraft with 15 years of economic life remaining.

For a lessor to make its business case stick at a 15

year life assumption, “The lease rate would have

to be $450,000 [a month],” says da Silva. “The

obvious diffi culty for the market is that you can’t

get $450,000 for a 767-sized freighter. You can get

$350,000 to $375,000.”

What this means, he says, is that because Boeing

(or IAI Bedek) is never going to discount its 767

conversion price by more than about 10 per cent

and so customers will never fi nd major savings

there. Customers must wait until the residual

values of suitable 767-300ERs drop considerably

before they buy their aircraft or release them from

passenger service.

Continuing high 767-300ER residual values

point to another problem affecting the freighter-

conversion industry in recent times. Although

Boeing launched its 767-300ER conversion

programme with All Nippon Airways (ANA)

in 2006 knowing it was doing so ahead of the

market, the company believed that, by the time

the ANA conversion programme ended in late

2010, 767-300ER values would have fallen to

where many aircraft would be suitable for, and

available for, conversion. However, says da

Silva, delays to the 787 and A380 production

programmes, and Airbus’ false start with the

737-300 Conversion Programme

Conversion House Down Time Main Deck Containers Net Structural Payload (lbs) (incl. Lower Deck)

AEI 90 days 9 × 88/125 39,779

IAI Bedek 60 - 70 days 8 × 88/125 + 1 × 60/96 39,118 / 38,318

Pemco 85 days 8 × 88/125 + 1 × 60/96 39,653 / 39,218

737-400 Conversion Programme

Conversion House Down Time Main Deck Containers Net Structural Payload (lbs)

AEI 90 days 10 × 88/125 41,310 / 44,310

IAI Bedek 60 - 70 days 9 × 88/125 + 1 × 88/64 39,749 / 42,749

Pemco 85 days 10 × 88/125 42,450

767-200ER Conversion Programme

Conversion House Down Time Main Deck Containers Net Structural Payload (lbs)

Aeronavali 140 - 150 days 20 × 88/125 92,134

IAI Bedek 110 days 19 × 88/125 84574

Credit: IBA Group

A350 in 2005, made airlines want to hang on to their 767-300ERs.

“We hope the 767 market comes sooner rather than later,” says da Silva. “With the 787

delivering this year, we expect the values of 767s and the appetite of airlines to renew

and extend their leases on older 767s to defi nitely go down. At the [ISTAT] conference in

March [2011], the interest from leasing companies in talking to us about 767 conversions

had grown exponentially since the meeting in Munich [ISTAT, October, 2010]. Then,

it was the 747-400 they were interested in. Now, those deals are consolidating, and we

expect the same with the 767.”

WHAT COMES NEXT?Customers are keenly watching three other conversion programmes. At the time of

writing Dresden-based Airbus Freighter Conversion (AFC) has already launched the

A320 and A321 conversion programmes with an order from AerCap for 30 conversions

in 2011 to 2015. The company — a joint venture involving EADS EFW, Airbus and

Russia’s United Aircraft Corporation and Irkut — had been in discussions with other

potential customers for slots from 2012 onwards as it sought to ramp-up production




to 15 to 20 aircraft a year. Along the way, AFC

hoped to launch the A321-100 conversion

programme in 2013, says Becker, noting AFC

was in discussions with two potential customers

to provide A321-100s for prototyping the

conversion. Eventually, AFC expected to convert

as many A321s as A320s.

Since the interview with Becker, Airbus

withdrew the A320 and A321 conversion

programmes. Some believe this was because

Airbus wanted to focus its rescources on the

A350 and neo programmes, others believe it was

due to poor demand — though ahead of Airbus’

announcement Becker seemed to think otherwise.

He says a number of good candidates are

becoming available among older A320s with

residual values from $7m to $10m and soon

A321-100 candidates with values from $12m to

$15m should be available. AFC saw prime A320

feedstock as being aircraft that are 18- to 20-years-

old. “We are getting some requests between 12

and 14 years but these are exceptions,” he says.

Ahmed believes the sizable number of A320s

likely to reach the market for conversion during

the next few years may make it extremely

difficult to establish an eventual conversion

market for 737NGs. Once the A320 programme is

established, hundreds more A320-family aircraft

will continue to become available for conversion

over time, impacting 737NG freighter demand.

Agnew sees older A320s as being natural

freighter competitors for 737-400s, saying: “I think

that’s going to be the race. [The 737-400] offers

one more container than the -300 for essentially

zero cost.” However, one big variable that could

dramatically impact the market for 737-300

and 737-400 conversions is how the new FAA-

mandated inspection regime for 737 Classics with

more than 30,000 cycles plays out following the

Southwest Airlines fuselage-rupture on April 1.

EADS EFW, meanwhile, is seeing a resurgence

in A300-600R conversions as up to six of the 32

former American Airlines aircraft are signed for

conversion (the rest of the fl eet is too run-out to

be suitable) and many of the 18 A300-600Rs that

Japan Airlines formerly owned, and the four

it formerly leased, are checked in. EADS EFW

is also expected to announce a significant new

conversion deal on ex-JAL aircraft. Once these

aircraft are converted, A300 conversions will end.

Meanwhile, A310-300 conversions will remain

at best a niche market, says Schmid. However,

some customers are close to signing A310-300

conversion deals, he says.

But the programme everyone has their eyes on is

the A330-300, an aircraft with no true competitor.

“It’s below the 777 and above the 767,” notes

Schmid. “It’s the most-demanded aircraft and

there will be some pretty good candidates in two to three years’ time. In the beginning, the

airframes are pretty expensive — but this is always the case, and then they get cheaper and

cheaper.” Given a three-year development programme, Schmid hopes EADS EFW will be

able to offer A330-300 conversions from 2014 or 2015. The only problem is “Demand is so

high there might not be enough A330-300s. It’s defi nitely a hot item.”

The company is not actively pursuing A330-200 conversions — it has no wish to

“interfere” with Airbus’ solid market for new A330-200Fs and in any case no A330-200

is yet old enough to make sense as a candidate — but Schmid notes that, “once we’ve

done the A330-300, the smaller aircraft is an easy jump.” However, while EADS EFW has

had some institutional-customer interest in converting A340-300s (and the job would be

essentially the same as that for the A330-300), Schmid says the company sees no end-user

market at present and would not accept any A340-300 conversions until operator interest

did become evident.

Another programme of great interest is the 777-200ER. “Some carriers would love

the 777BCF in a couple of years, but they don’t want to pay the prices”, says da Silva.

Originally, Boeing looked at converting non-ER 777-200s fi rst, but there are so few of these

(and almost all are operated by United) that it quickly turned its attention to the more

capable model. A timing problem is that while there are some 415 potential 777-200ER

candidates, only a few are in the oldest batch, completed from 1995 to 1997. “A large

number of 777-200ERs at prime age will be available later in the decade,” and this is once

the 787-9 and the A350 XWB enter service, da Silva notes. He says Boeing expects to have

the fi rst conversion slots available from about 2016, following three years of engineering

development. ■EADS Ad_Layout 1 07/09/2011 11:42 Page 1




Building a narrowbody freighter fl eet

TO SUCCESSFULLY CONVERT A NARROWBODY freighter,

several key issues must be understood and appropriate

decisions must be made. Some decisions require complex

analysis — for example, payload, volume, range, speed,

fl exibility and safety. Other considerations are more simplistic.

Take size and availability as an example. Narrowbody

freighters are often grouped into two size categories — small

and mid-size. The small group consists of out-of-production

models like the DC9, 737-200 and 727-100 and in-production

aircraft such as the 737-300/400. The mid-sized group is

dominated by the out-of-production DC8 and 727-200 and the

in-production 757-200.

One should note that the A320 and A321 are not included

here due to Airbus’ recent cancelation of the proposed A320

and A321 freighter conversion programmes. Out-of-production

models are being replaced due to a myriad of issues including

operating effi ciency, age, cost and reliability. Replacing these

‘Jurassic’ aircraft are the popular 737-300/400 and 757-200s.

Together, these aircraft account for well over 200 freighters in

operation and there are more to come thanks to the availability

of attractively priced feedstock, particularly the 737 Classic.

Successfully building a freighter fl eet is an intricate process. At its heart is the need to select the right aircraft for the job. Kevin Casey, president of Pemco World Air Services takes a look at some of the considerations that cargo operators may take when expanding their fl eet.




Configuration is another major issue. Will the operator

choose a fixed all-freighter arrangement or would quick

change (QC) capabilities and combi/special mission

characteristics be preferred? If a basic freighter is the right

choice, which layout works best? Take the 757F. It comes in

14, 14.5 and 15 pallet confi gurations. If your freight density is

extremely light, say 7lbs per cubic ft or less, then maximising

volume with the 15 pallet arrangement (2.5 per cent net

volume) makes sense. However, if your payload density is

typical and it is important to have a forward hazmat container

or a supernumerary-capable vestibule, then the 14 or 14.5

arrangement makes better sense.

To be viable, a freighter’s capability and economics need

to closely match its route (payload, volume, distance).

Freighters that are strong in one profile — for example the

757 on a 2000km, 60 tonnes, revenue tonne (RT) route, may

be uneconomical on another route — for example a 1500km

40 tonnes RT payload route, which is better suited to the 737.

Many thin intra-region routes favor efficient medium-range

aircraft that have a smaller volume — such as the 737-300F,

737-400F and 757-200F.

Express integrator operators are typically limited by volume

whereas general freight operators tend to be driven by weight

and a low utilisation environment, which makes fixed

cost amortisation a key consideration. Therefore, aircraft

acquisition and ownership costs are critical to a successful

operation in the narrowbody freighter market. The 737 and 757

acquisition costs are considered favourable, with the 737-300

of a particularly attractive value due to a large number of recent

retirements and the availability of well-maintained aircraft.

Although Airbus has indefi nitely suspended the A320 and

A321 conversion programmes, the tables to the right (drawn in

2Q, 2011) provide a cost analysis for four narrowbody freighters

OWNERSHIP ASSUMPTIONS

All in Jul 2010 $ 737-300SF 737-400SF A320-200SF 757-200SF

Airframe Acquisition Cost (Airclaims) $3,500,000 $7,000,000 $10,000,000 $10,000,000

Conversion Cost $2,500,000 $2,900,000 $5,000,000 $5,000,000

Total Acquisition Cost $6,000,000 $9,900,000 $15,000,000 $15,000,000

Useful Life 35 years 35 years 35 years 35 years

Age at acquisition 22 years 18 years 18 years 18 years

YOM 1988 1992 1992 1992

Remaining Life 13 years 17 years 17 years 17 years

Residual Value at End of Life $600,000 $990,000 $1,500,000 $1,500,000

Cash - Principal & Interest - Monthly $73,770 $111,360 $168,727 $168,727

OPERATING ASSUMPTIONS

737-300SF 737-400SF A320-200SF 757-200SF

Maintenance Cost Per FH $843 $885 $850 $969

Flight Crew Cost Per BH $100 $100 $100 $100

Base Utliization (BH Per Year) 2700 2700 2700 2700

Base Utilization (FH Per Year) 2500 2500 2500 2500

Overhead ($/BH) 0 0 0 0

SECTOR: SGN-HKG

737-300SF 737-400SF A320-200SF 757-200SF

Maximum Take-Off Weight (lb) 139,500 150,000 169,800 240,000

Maximum Take-Off Weight (kg) 63,409 68,182 77,182 109,091

Strucutral Payload (kgs) and Tare 18,400 21,542 22,584 30,900

Structural Payload (tonnes) and Tare 18.40 21.54 22.58 30.90

Block Time (hr) 2.35 2.31 2.28 2.27

Utilization (BH Hr per Year) 2,700 2,700 2,700 2,700

Tare (kg) 858 958 998 1,733

CASH OPERATING COSTS (US$ PER TRIP)

737-300SF 737-400SF A320-200SF 757-200SF

Principal & Interest 772 1,145 1,710 1,699

Flight Crew 235 231 228 227

Maintenance 1,563 1,605 1,513 1,712

Hull Insurance 259 255 251 249

Fuel (kg) 5,210 5,715 5,696 7,272

Fuel 3,514 3,855 3,842 4,905

Landing Fees 587 631 715 1,010

Navigation Fees 623 623 623 623

Airplane Ground Handling Fees 431 459 538 538

G&A 0 0 0 0

Cash Operating Costs $7,985 $8,805 $9,420 $10,964

COC/kg $0.455 $0.428 $0.436 $0.376

Relative COC/kg Base -22% -21% -32%

Relative Trip Cost Base -9% -2% 14%

Revenue $17,542 $20,584 $21,586 $29,167

Segment Operating Profi t/Loss $9,557 $11,779 $12,166 $18,203

TABLE 1

TABLE 2




— namely the 737-300, 737-400, A320 and 757 — across

several routes. From this data, we can see that the 737-300F has

a cost advantage on a trip cost basis. The 737-400F is second

best at nine per cent. Behind it is the 737-300F at 15 per cent

and 35 per cent less cost per trip compared with the A320F and

757F respectively.

On a unit basis, the 737-400SF has a fi ve per cent advantage

over the 737-300F on routes under 27,000 tonnes. However, on

routes over 27,000 tonnes, the 757-200F is the most attractive

narrowbody freighter.

The freighter analysis above demonstrates that the 737-

300 and -400 are compelling choices below 27,000 tonnes

meanwhile the 757-200 is most effective above 27,000. But

picking the right aircraft model is just one step. In addition

to this economic analysis, special consideration may be

required to assess environmental issues such as high ambient

temperature, high elevation or short runways. These require

specialised capability and effi ciency route studies.

Once a carrier has performed these studies above and

selected the right aircraft and arrangement, there are additional

considerations that are often overlooked but can generate

a surprising impact on future operations. For example, a

common mistake is to under-estimate the value of reliability

and durability. The aircraft must go under sound conversion

to ensure low operating costs and a high future value. A cargo

operator should consider whether dispatch reliability will be

adequate; how often their service will be interrupted due to

reliability or design issues (for example SID inspection intervals)

and how much repairs will cost (including ancillary costs such

SECTOR: SGN-HKG

Aircraft 737-300SF 737-400SF A320-200SF 757-200SF

Engine CFM56-3C CFM56-3C CFM56-5 RB211-535B4

Characteristics Conversion Conversion Conversion Conversion

MOTW/lb 139,500 150,000 169,800 240,000

MLW/lb 116,600 124,000 145,500 198,000

MZFA/lb 109,6000 117,000 137,790 184,000

OEW without Tare / lb 66,000 69,000 87,085 116,000

Maximum Structural Payload / lb 43,600 48,000 (new -400) 50,705 68,000

Tare – Containers / lb 1,892 2,112 2,200 3,820

Maximum Revenue Payload / lb 41,708 45,888 48,505 64,180

Revenue Payload (9lb/cu. ft Pallet, 5lb Bulk / lb)

38,406 43,906 45,170 68,550

Lower Hold Capability Bulk Vol. / ft. 1,068 1,376 1,114 1,830

Main Deck Cargo Capability

Pallet vol. 96x125 ft2. (Standard Dim.) 0 0 0 0

No. of 96x125 ft2. Pallet (Standard Dim.) 0 0 0 0

Pallet volume, 96x125 ft2. (Odd Dim.) 0 0 0 0

No. of 96x125 ft2.(Odd Dim.) 0 0 0 0

Pallet vol. 88x125 ft2. (Standard Dim.) 440 440 440 440

No. of 88x125 ft2. Pallet (Standard Dim.) 8.0 9.0 10.0 15.0

Pallet volume, 88x125 ft2. (Odd Dim.) 154 154 0 0

No. of 88x125 ft2. (Odd Dim.) 1.0 1.0 0 0

Container volume, LD3 ft2. 0 0 0 0

TOTAL MD CARGO VOLUME: ft2. 3,674 4,114 4,400 6,600

TOTAL WEIGHT BUILD UP / lb

Total Pallet Tare / lb 1,892 2,112 2,200 3,820

Adjusted (95%MD+50%LD) Total Cargo Volume, tls

4,024 4,596 4,737 8,430

TOTAL CARGO VOLUME, ft2. 4,742 5,490 5,514 8,430

TABLE 3

TABLE 4




as damage caused by cargo door location). The

highest quality conversion will reduce overall

operating maintenance costs while maximising

aircraft availability to generate revenue.

Operators must look for expertise across a

myriad of issues to improve the chances of

success when starting up a fl eet of narrowbody

freighters. These include project planning and

analysis, aircraft sourcing, fi nancing and credit

requirements, maintenance requirements,

entry into service and retirement, plus the

cost, reliability and valuable of the conversion

programme and the freighter it produces.

Without expert help with these important

issues, a freighter owner/operator can spend

substantial amounts of money and never achieve

the success it desires. The bottom line is to do

ones homework, to buy a quality airframe and

to choose a proven conversion product from a

quality service integrator. ■

TABLE 5

TABLE 6

TABLE 7




THE FINANCING OF AIRCRAFT SPARES

was irrevocably altered with the

introduction of low-cost carriers (LCCs) and the

maturation of the market for pooling parts. LCCs

refused to tie-up liquidity (even if they had it) in

buying non-revenue generating assets. In many

cases, LCCs operated aircraft on operating lease

arrangements and were even more averse to

tying up capital in spares.

Thankfully, and perhaps as a result, the market

for the commercial pooling of parts developed

— rather than investing in the purchase of parts,

airlines could buy the right to access pooled parts

with costs based on their availability and on the

delivery of service levels.

The fi nancing of aircraft spares had traditionally been left to airlines, which were encouraged by component OEMs to undertake capital intensive initial provisioning (IP) programmes that resulted in large capital investments and sunken costs. That was until two things came along to change it. John Avery, director of supply chain services and Ian Malin, treasurer and chief investment offi ce at AJ Walter explain.

Financing Aircraft Spares

MARKET FORCESThe idea of sharing assets to enjoy an economy of scale is not a

new one. It developed in Europe in the early 1970s, driven by

the introduction of the new generation of large-scale long-haul

aircraft such as the 747 and DC10. Several co-operatives were

formed — notably KSSU (KLM, SAS, Swissair and UTA) and

ATLAS (Air France, Alitalia, Iberia, and Lufthansa) — which

shared the investment and complexity of these new and much

larger-scale challenges between them. In retrospect however, it

is hard to tell if these collectives saved much money.

The next step was made in the 1980s when legacy carriers

started offering support to smaller airlines (often the new

breed of start-ups) to support their existing engineering lines.

The attraction for the new airline was not only access to stock

but also access to technical support. The established airline




benefited by making a revenue that was higher than the

incremental costs.

What was missing from the market at that time however was

a mechanism to efficiently finance these assets. The legacy

carriers could only offer access to the stock they already

owned and had no appetite to make additional investment,

particularly into parts they could not utilise on their own

fl eet. So this was only a partial solution. Users often felt they

received an indifferent service and had a strong suspicion that

if there was a problem the parent airline would protect its own

interests fi rst. What was missing was a parts-savvy commercial

organisation with access to capital and the willingness to

invest — yet the value of these highly mobile assets had to be

determined.

Still, fi nancing stock did become a third-wave interest — the

fi rst being aircraft and the second, engines — and it is now well

established and offers a number of options.

It is worth noting that component transactions are more

complicated than lending against aircraft or engine assets.

Fundamentally, this is driven by the sheer quantity of line

items, which can reach into the tens of thousands. Added to

that, lenders, particularly those in the USA who were the fi rst

to approach the market, had negative experiences in this asset

class. In an attempt to identify any unencumbered collateral for

secured fi nancing, borrowers often included large packages of

spare parts inventory. Very little discipline was applied to the

identifi cation and selection of spare parts collateral and often

things went missing. The collateral consisted of low-value

expendables, consumables, and inventory supporting obsolete

aircraft types. The market significantly matured since these

early attempts and as airlines continue to rationalise their fl eets,

inventory obsolescence risk is mitigated.




ASSET BASED FINANCING: RENT DON’T BUYSecured fi nancing is inherently less costly than

unsecured by virtue of a lien afforded on the

underlying assets. Put simply; you identify

assets you already own and borrow money

against them. A number of airlines that filed

for Chapter 11 bankruptcy protection in the US

worked successfully with lenders to implement

these types of facilities. It is approached very

conservatively by virtue of the low-value

ascribed to spare parts in a down market (often

the driver of Chapter 11 fi lings). Also, much of

the remaining value is based on the assumption

that the operator will emerge from bankruptcy

and continue to operate — any cessation of

operations compels the lender to dispose of assets

in uncertain times. But, if all goes well the airline

borrows potentially 20 to 30 per cent of the book

value of the asset, which becomes valuable cash

to ensure survival.

The idea that renting an asset is cheaper than

buying an asset requires careful analysis. In

addition to obvious cash flow considerations,

accounting and tax influence the decision.

The market for the leasing of aircraft parts is

still maturing but there is a good case for it,

particularly as it offers flexibility to structure

solutions suitable to a user’s needs.

The case is really driven by two factors;

economies of scale and specifi c asset selection.

Regarding specific asset selection, airlines

often fi nd it diffi cult to take a generic approach

to provisioning — specific part numbers and

quantities must be chosen based upon the fl eet

composition, which will undoubtedly change as

the business evolves. While it is easier to trade

in and out of aircraft types, it is difficult for a

company to transition itself from spare part assets

unless the organisation is specifi cally designed to

generate revenue from spare parts.




WHERE NEXT?Asset fi nancing continues to grow in line with the air transport industry.

Similarly, investment in the asset fi nance industry has grown rapidly with

an increasing demand for newer, more fuel efficient and safer aircraft.

Rotable assets are seeing a similar trend. The business model of MROs for

legacy carriers is proving inadequate, except in certain instances where they

achieve economies of scale. Although some are responding to the market

changes, many are not. Organisations are responding to this emerging

demand by developing mechanisms to provide fi nance to the evolving MRO

market and to invest directly into it.

The market continues to mature and consolidate — those who do not

utilise these new opportunities will face higher costs, while others will

make fi nancially and operationally motivated decisions to access such

arrangements. For the latter companies, one should expect to see a change

in behaviour as deals become larger and longer term. Airlines need to

make decisions that are smarter than ever before — one of which should

be to consider the long-term solutions to stocking spares. ■

Airlines are in the business of selling seats and

do not have an efficient mechanism to dispose

of surplus stock. As airlines re-equip, they must

repeat this exercise. When valuing an airline’s

inventory one will typically fi nd that half of the

assets are not being used, one quarter are ‘slow

moving’ and the final quarter see regular use.

However, this is not necessarily because of poor

decision-making.

In most cases an airline inventory is not the

result of a single planned investment decision

but rather a series of decisions over time which

together result in an undesirable mix of parts.

This would not happen if the airline had instead

made a decision to buy a service level from

a parts pool, rather than simply buying and

stocking parts.




Any global aviation business will be aware that in certain countries, in certain circumstances, payments help things happen. Sometimes, that is just the way things are done. But the UK’s new Bribery Act will make what seems a normal course of action, an illegal one. Richard Mumford, partner and head of the dispute division at ASB Law, a specialist in aviation law, explains.

The UK Bribery Act: Don’t get caught out




THE LEGISLATION IN EFFECTTo put this into context, consider the following example. An

executive jet owned by a UK operator sits on the tarmac in

a foreign country. It is hot, and the important clients sitting

on board are eager to return home. The aircraft needs fuel to

takeoff, so the UK crew approach the local offi cials and ask to

buy some. The sale of fuel in that country is heavily regulated

and can only be purchased from a single offi cial source. The

offi cial in charge of the fuel tells the crew that they can only

buy fuel if they pay him $1,000 as a personal fee to send over

a tanker and re-fuel the aircraft. This happens every time they

land in this particular country and they have the cash ready.

They pay the offi cial; he sends over the tanker, re-fuels the

aircraft and charges them for the fuel.

The crew see nothing wrong with this. In that country it is

customary to pay the offi cial (all the airlines do) and, after all,

they are paying him to do his job, not to do something improper

or illegal. None of this takes place in the UK. Surely this will

not be affected by the Bribery Act?

Unfortunately, they would be wrong. Under the act, it will be

an offence to seek to infl uence any foreign offi cial through the

payment of a bribe. The crew who pay and/ or offer the bribe

could be guilty of an offence that carries a sentence of up to 10

years in prison. If the aircraft operator has not taken adequate

steps to prevent bribery in its business, then it too will be

guilty of an offence and could face an unlimited fi ne. Its senior

management could be prosecuted if they consent to, or connive

in bribery. Only the foreign offi cial who demanded the bribe

remains unaffected.

Many aviation business managers reading this article can

see the problem that arises from this example. What were the

crew supposed to do? Had they refused to pay, they would

have been unable to leave. This could have caused signifi cant

delay, claims for compensation and loss of future business from

passengers, a damaged reputation and diffi culties next time

the operator fl ies into this particular airport. Unfortunately, the

Bribery Act has no defence of duress (i.e. it is not good enough

to claim that the crew had no real option but to pay the bribe).

Even if it did, this situation is precisely what the act is designed

to tackle.

THE UK’S NEW BRIBERY ACT 2010 will instil a blanket

ban on all forms of bribery, altering the way UK companies

operate and potentially limiting their trade.

The new legislation will cast the US’ Foreign Corrupt

Practices Act and the Alien Tort Statute, both of which only

impair the ability of US citizens to pay bribes abroad, as its

benign counterparts. The tougher UK legislation covers

all acts of bribery, whether fulfi lled or not; it covers bribery

both in the UK and abroad; and introduces criminal offences

committed by companies.

An OECD convention… sought to outlaw the bribery of foreign offi cials, but required implementation into local law. It has taken the UK 14 years to do so [but]… it was worth the wait, because the Bribery Act appears to go signifi cantly beyond our OECD commitment.




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To understand why, some background to the act is required.

In essence, bribery and corruption in developing countries

is considered to distort and harm their legitimate growth

into modern, free economies with opportunities for all. An

Organisation for Economic Co-operation and Development

(OECD) convention in 1997, which was signed by 38 countries,

sought to outlaw the bribery of foreign offi cials, but required

implementation into local law. It has taken the UK 14 years

to do so under signifi cant external political pressure, chiefl y

from the US. But from a political (rather than commercial)

perspective, it was worth the wait, because the Bribery Act

appears to go signifi cantly beyond our OECD commitment.

The act was drafted to catch every potential instance of

bribery. Indeed, no bribe need ever be paid; a mere offer of a

bribe is suffi cient and can be prosecuted, even if the bribe is

never paid and the improper conduct never takes place.

Politically, this is easy to understand — you cannot eradicate

bribery by having legislation that essentially prohibits someone

from paying bribes, unless they really feel they need to.

Evidence of payment or improper conduct may also be hard to

establish.

Commercially, the issue is much more blurred. Many

businesses expect to occasionally pay to get things done in

foreign countries. But the act applies to all companies, even

charities that do business overseas – so the aviation industry,

while hit hard because of its global reach, need not feel that it

has been singled out for special treatment.

It is also easy to understand why those states that have

implemented anti-bribery legislation might feel aggrieved at

those that have not. Consider another scenario. A country has

major oil reserves being exploited at a number of installations

400 miles up the coast from the capital. There is a steady fl ow

of personnel and equipment from the main airport in the

capital to a smaller landing strip at the oilfi elds.

The airports are controlled by the state and they put to tender

a single contract for the operation of those routes by helicopter

and aircraft. ‘Company A’ clearly puts in the best tender.

However, ‘Company B’ pays bribes to the offi cials making the

decisions. The offi cials offer to award the contract to ‘Company

A’ if they will only match the bribes. ‘Company A’ is based

in a country where it is an offence to pay bribes, so refuses.

‘Company B’ is not, so is awarded the contract.

Not fair, not right, but it happens all of the time. Even if

‘Company A’ had won the tender, it is quite possible that unless

it was prepared to pay bribes to gain access to maintenance,

fuel or other logistical needs, then its supply chain would have

dried-up, making the contract unworkable.

The only way to make this effective is to persuade everyone to

refuse to pay bribes – but that ideal, could it ever to be reached,

is a long-term goal. Neither Russia nor China are signatories. Nor

is any country in the Middle East or Asia beyond Japan, South

Korea and Israel. South Africa is the only signatory in Africa.

WHAT CONSTITUTES A BRIBE? Bribes do not only come in the form of cash-stuffed envelopes.

They can include administrative fees, commissions, grease

payments and other forms of apparent charging. More than

that, a bribe can be any ‘advantage’ given to another, so could

include lavish hospitality, honours, political favours or other

benefi ts without a strict monetary value.

The key to understanding whether something is, or is not, a

bribe is the purpose for paying it. If the purpose is to persuade

another person to do something ‘improper’, then it is a bribe. In

the case of a foreign offi cial, the test is even wider — it only has

to be intended to ‘infl uence’ them in their role, whether it is to

do something proper or not. That is why the crew in the fi rst

example committed the offence, even though they simply paid

an offi cial to do his job.

Whether something is ‘improper’ is crucially judged by how

a reasonable person would consider that conduct, were it to

take place in the UK. For these purposes, local foreign custom

is irrelevant. The only exception is where a foreign country

has written legislation expressly allowing bribery, but in the

opinion of the Ministry of Justice (MOJ), no such country

currently exists.


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ADEQUATE STEPSAll this may seem a little gloomy, and unfortunately it is. A

business will need to demonstrate that it has taken ‘adequate

steps’ to prevent bribery within its organisation. There are

a number of elements to this. First, it will need to enshrine

anti-bribery into the framework and culture of its business.

Employment contracts should outlaw bribery and a robust

anti-bribery policy should be put in place. But it needs to go

further than this. Staff should be trained and monitored to

ensure they understand and comply with their obligations.

This might be achieved through on-line training with

testing that allows a business to demonstrate a basic level of

understanding.

A business should also consider its interface with the

outside world. Robust terms and conditions should demand

compliance by any supplier or customer with the anti-bribery

legislation; there should be warnings and disclaimers on its

website and in its marketing literature; suppliers, agents and

brokers should be kept under particular scrutiny and control to

ensure that they do not cause the business to fall foul of the act.

Finally, senior management should be very careful not to

derogate from the restrictions and procedures put in place.

They should take a step back from their daily roles and pull

apart the processes of the company to identify areas that

are at particular risk of bribery, employing more resources to

anticipate and minimise that risk.

None of this can prevent a member of staff fi nding themselves

with an impossible choice to make – for example, the thirsty

aircraft stuck on the tarmac. By law, they must decline to pay

and take the consequences, hoping that eventually the errant

official will relent. In practice, this may take weeks and so

be entirely unworkable. By paying the bribe, they, and quite

likely the operator, will commit an offence. But will they be

prosecuted for it?

It is dangerous to assume not, but in order for a prosecution

to take place in the UK, a number of things would need to

happen. Firstly, someone would have to tell the UK authorities

(the police). Who would do that in these circumstances?

Probably not the offi cial, though his government might if they

wish to clamp down on corruption. It is also unlikely that the

passengers would, as they are probably unaware that a bribe

has been paid. The crew could, but would risk prosecution

themselves. However – and this is the biggest area of risk –

a disgruntled employee might. Departing and embittered

employees are the biggest source of risk for this type of

situation, and it is very dangerous therefore, for a company to

assume that payment of bribes might never come to light.

Of course, even if they do, the police would need to establish

an evidential case to a criminal standard of proof (beyond

reasonable doubt), and persuade the Crown Prosecution

Service (CPS) to take a prosecution. This would require them to

consider it in the public interest and worth the use of resources.

The latter point may depend on what message the police and

the CPS are trying to promote at that time. Essentially, the

higher profi le the offender and the offence, the more likely it is

to be prosecuted.

In the oilfields example, the risk is much greater because

a spurned tenderer will be highly likely to report a winning

bidder if bribery is suspected.

The government issued a consultation towards the end of

last year. It is due to publish guidance three months before the

act comes into force, although that guidance is now late. It is

imagined that they are wrestling with these issues, but in reality

it is unlikely that anything will be done to substantially temper

the effects of the act for businesses in the aviation industry. So

now is the time to take the steps outlined above, particularly to

consider the business and areas of risk, so that a strategy can be

developed to minimise or remove those risks and protect the

business.

However, high profi le or more substantial businesses will be

advised to look more closely at what they do and how they do

it in order to demonstrate that they have taken adequate steps

to comply. Whatever size of business, this should be part of a

current agenda and not delayed for long. ■

Senior management should be very careful not to derogate from the restrictions and procedures put in place. They should take a step back from their daily roles and pull apart the processes of the company to identify areas that are at particular risk of bribery, employing more resources to anticipate and minimise that risk.


YOUR DETAILS

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Post Code Zip Code

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Manufacturer

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Buyer Furnished Eqpt

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Engines

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Allied to Field

Advertising Agency

Other – please specify

Aviation Services

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Airshow/Conference Co

Aviation Association

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AIRCRAFT TRANSACTIONS JANUARY-JUNE 2011EQUIP Model New Owner/Operator Previous Owner/Operator Serial No. or No. of

(Orders)/ [Options]Engine Model Date of Manf. or First Exp. Deliv. Transaction Type Date

Source: OAG Fleet iNet

JANUARY328-310 Jetran JHK Development 3160 PW306B 2000-06 Sold 2011.01.14328-310 Petra Aviation Jetran 3160 PW306B 2000-06 Sold 2011.01.14707-366C Israeli Air Force Wilmington Trust 20919 JT3D-7 1974-06 Sold 2011.01.19717-2CM Blue1 SAS 55060 BR715A1-30 2000-06 Sub-Leased 2011.01.31717-2BL BCC Leasing Aerocaribe 55167 BR715A1-30 2003-02 Returned 2011.01.19717-2BL BCC Leasing Aerocaribe 55169 BR715A1-30 2003-05 Returned 2011.01.19717-2BL BCC Leasing Aerocaribe 55177 BR715A1-30 2003-12 Returned 2011.01.19717-2BL BCC Leasing Aerocaribe 55178 BR715A1-30 2004-01 Returned 2011.01.19717-2BL BCC Leasing Aerocaribe 55180 BR715A1-30 2004-05 Returned 2011.01.19717-2BL BCC Leasing Aerocaribe 55183 BR715A1-30 2005-01 Returned 2011.01.24717-2BL BCC Leasing Aerocaribe 55185 BR715A1-30 2005-06 Returned 2011.01.23717-2BL BCC Leasing Aerocaribe 55190 BR715A1-30 2005-10 Returned 2011.01.19717-2BL BCC Leasing Aerocaribe 55194 BR715A1-30 2006-03 Returned 2011.01.24737-247 Northrop Grumman Northrop Grumman 19605 JT8D-9A 1968-07 Transferred 2011.01.06737-230 Conviasa Rutaca 22124 JT8D-15 1980-11 Sub-Leased 2011.01.01737-2Y5 Business Aviation Group Aerolineas Galapagos 23847 JT8D-15A 1987-06 Returned 2011.01.18737-2Y5 South Florida Leasing Business Aviation. 23847 JT8D-15A 1987-06 Sold 2011.01.18737-2Y5 Belina Export South Florida Leasing 23847 JT8D-15A 1987-06 Sold 2011.01.21737-2Y5 Business Aviation Group Aerolineas Galapagos 23848 JT8D-15A 1987-06 Returned 2011.01.18737-2Y5 South Florida Leasing Business Aviation. 23848 JT8D-15A 1987-06 Sold 2011.01.18737-2Y5 Belina Export South Florida 23848 JT8D-15A 1987-06 Sold 2011.01.21737-2X6C Esperanza Aviation Aloha Air Cargo 23124 JT8D-17A 1984-07 Returned 2011.01.11737-347 BCI Moscow Airlines 23183 CFM56-3B1 1985-04 Returned 2011.01.18737-3T0(W) Continental Airlines Continental Airlines 23374 CFM56-3B1 1986-02 Sold 2011.01.18737-3T0(W) As & L Continental Airlines 23374 CFM56-3B1 1986-02 Sold 2011.01.18737-347 BCI Moscow Airlines 23442 CFM56-3B1 1986-05 Returned 2011.01.18737-322 Security Pacifi c Leasing United Air Lines 24250 CFM56-3C1 1988-11 Returned 2011.01.27737-322 Wells Fargo Wilmington Trust 24250 CFM56-3C1 1988-11 Sold 2011.01.27737-3K2 Jetscape Aircraf Jetscape Aircraft 24327 CFM56-3B2 1989-04 Transferred 2011.01.25737-3K2 NAS Jetscape Aircraft 24327 CFM56-3B2 1989-04 Leased 2011.01.25737-382 Triton Aviation Airlift Service 24365 CFM56-3B2 1989-02 Returned 2011.01.28737-33A Viva Aerobus Ansett Aviation 25010 CFM56-3C1 1991-02 Leased 2011.01.01737-33A CIT Aerospace NAS 25033 CFM56-3B2 1991-03 Returned 2011.01.05737-3M8 Southern Aircraft Consultancy Tag Aviation 25040 CFM56-3B2 1991-02 Transferred 2011.01.06737-33A Tonle Sap Airlines Astraeus Airlines 25119 CFM56-3C1 1991-05 Sub-Leased 2011.01.18737-3Y5 Boeing Capital Leasing Moscow Airlines 25614 CFM56-3C1 1993-04 Returned 2011.01.31737-36N Aircraft Finance Trust Aft Trust-Sub 1 28563 CFM56-3C1 1997-07 Sold 2011.01.21737-31S Deutsche Structured Finance Nouvelair Tunisie 29116 CFM56-3C1 1998-02 Returned 2011.01.10737-4Y0 Iraqi Airways Eastok Avia 23980 CFM56-3C1 1988-12 Sub-Leased 2011.01.01737-4K5 Sky Wells Fargo 24129 CFM56-3C1 1989-09 Leased 2011.01.07737-4S3 Transalpine Leasing Boeing Capital 24165 CFM56-3C1 1989-04 Sold 2011.01.27737-4S3 Transaero Airlines Transalpine Leasing 24165 CFM56-3C1 1989-04 Leased 2011.01.27737-4S3 Transalpine Leasing Boeing Capital 24166 CFM56-3C1 1989-04 Sold 2011.01.25737-4S3 Transaero Airlines Transalpine Leasing 24166 CFM56-3C1 1989-04 Leased 2011.01.25737-4Q8 Aurora Leasing ACG Acquisition 24709 CFM56-3C1 1991-08 Sold 2011.01.05737-4B6 Buraq Air Transport Celestial Aviation 26531 CFM56-3C1 1993-03 Leased 2011.01.11737-4K5 Wells Fargo Japan Transocean Air 27102 CFM56-3C1 1992-10 Sold 2011.01.10737-46J Twelth Waha Lease RAK Airways 27213 CFM56-3C1 1994-02 Returned 2011.01.01737-476 Qantas Airways Jetconnect 28152 CFM56-3C1 1996-10 Returned 2011.01.31737-4M0 Sailplane Leasing Garuda Indonesian 29204 CFM56-3C1 1998-06 Returned 2011.01.01737-4M0 Aercap Sailplane Leasing 29204 CFM56-3C1 1998-06 Sold 2011.01.15737-4M0 Nok Airlines Aercap 29204 CFM56-3C1 1998-06 Leased 2011.01.15737-4M0 Celestial Aviation Garuda Indonesian 29205 CFM56-3C1 1998-06 Returned 2011.01.01737-548(W) Barkham Associates Air Baltic 24919 CFM56-3B1 1990-11 Returned 2011.01.01737-548 Jetscape Aviation Jetscape Aviation 25737 CFM56-3B1 1992-02 Transferred 2011.01.25737-548 Rossiya Airlines Jetscape Aviation 25737 CFM56-3B1 1992-02 Leased 2011.01.25737-548 Jetscape Aviation Jetscape Aviation 25739 CFM56-3B1 1992-03 Transferred 2011.01.25737-548 Rossiya Airlines Jetscape Aviation 25739 CFM56-3B1 1992-03 Leased 2011.01.25737-524(W) Continental Airlines Wells Fargo 28911 CFM56-3C1 1997-11 Lease-Buyout 2011.01.14737-524(W) Continental Airlines Continental Airlines 28911 CFM56-3C1 1997-11 Sold 2011.01.19737-524(W) Wells Fargo Continental Airlines 28911 CFM56-3C1 1997-11 Sold 2011.01.19737-524(W) Continental Airlines Wells Fargo Bank 28912 CFM56-3C1 1997-12 Lease-Buyout 2011.01.21737-524(W) Continental Airlines Continental Airlines 28912 CFM56-3C1 1997-12 Sold 2011.01.21737-524(W) Wells Fargo Continental Airlines 28912 CFM56-3C1 1997-12 Sold 2011.01.21737-524(W) Continental Airlines Wells Fargo 28913 CFM56-3C1 1997-12 Lease-Buyout 2011.01.28737-524(W) Continental Airlines Continental Airlines 28913 CFM56-3C1 1997-12 Sold 2011.01.28737-524(W) Wells Fargo Continental Airlines 28913 CFM56-3C1 1997-12 Sold 2011.01.28737-7BK CIT Aerospace CIT Leasing 30617 CFM56-7B22 2001-03 Sold 2011.01.28737-790(W) Lucky Air ILFC 30663 CFM56-7B24 2003-09 Leased 2011.01.23737-7BX(W) Southwest Airlines ACG Acquisition 30745 CFM56-7B20 2001-11 Leased 2011.01.28737-73V Macquarie Easyjet 32423 CFM56-7B20 2003-12 Returned 2011.01.21737-73V BOC Aviation Easyjet 32426 CFM56-7B20 2004-03 Returned 2011.01.30737-790(W) Ethiopian Airlines CIT Group 33012 CFM56-7B24 2003-03 Leased 2011.01.09737-790(W) Asky Airlines Ethiopian Airlines 33012 CFM56-7B24 2003-03 Sub-Leased 2011.01.10737-7BD(W) 1263343 Alberta Enerjet 33920 CFM56-7B20 2005-06 Returned 2011.01.20737-7BD(W) ACG Enerjet 33920 CFM56-7B20 2005-06 Returned 2011.01.20737-7CT(W) ACG Boeing 38096 CFM56-7B22 2010-12 Delivered 2011.01.20737-7CT(W) Westjet ACG 38096 CFM56-7B22 2010-12 Leased 2011.01.20737-7CT(W) Westjet Boeing 40338 CFM56-7B22 2011-01 Delivered 2011.01.27737-7KG(W) Dubai Aerospace Boeing (-32) CFM56-7B22 - Cncl-Order 2011.01.01737-7DM(W) US Air Force Boeing 40706 CFM56-7B27 2010-12 Delivered 2011.01.17737-700(W) Boeing Business Jets Boeing (1) CFM56-7B27 2012-12 Ordered 2011.01.24737-8K2(W) Enerjet Transavia Airlines 28248 CFM56-7B27 2002-04 Sub-Leased 2011.01.12737-883 SAS Sas Struktur 28318 CFM56-7B26 2000-03 Sale-Leaseback 2011.01.27737-8K2(W) Jet2 Transavia Airlines 28375 CFM56-7B26 1998-07 Sub-Leased 2011.01.05737-85F Macquarie Air Berlin 28821 CFM56-7B26 1998-10 Returned 2011.01.13737-85F Calima De Aviacion Macquarie Aircraft 28821 CFM56-7B26 1998-10 Leased 2011.01.13737-85F Enter Air Macquarie Aircraft 28823 CFM56-7B26 1998-11 Leased 2011.01.17737-8AS(W) Germic Moscow Airlines 29936 CFM56-7B24 2002-10 Returned 2011.01.20







737-8AS(W) Germic Moscow Airlines 29937 CFM56-7B24 2002-10 Returned 2011.01.20737-8BK(W) CIT Aerospace Virgin Blue Airlines 30620 CFM56-7B26 2001-10 Returned 2011.01.24737-8Q8(W) Air Jamaica Caribbean Airlines 30645 CFM56-7B26 2002-04 Sub-Leased 2011.01.10737-8Q8(W) T'way Air ILFC 30654 CFM56-7B27 2003-02 Leased 2011.01.21737-8Q8(W) ILFC Yemenia 30661 CFM56-7B26 2002-07 Returned 2011.01.17737-8Q8(W) Sunwing Airlines Eurocypria Airlines 30671 CFM56-7B27 2003-03 Returned 2011.01.27737-8Q8(W) ILFC Eurocypria Airlines 30671 CFM56-7B27 2003-03 Returned 2011.01.27737-8Q8(W) Flyfi refl y MAS 30702 CFM56-7B26 2006-05 Sub-Leased 2011.01.12737-8Q8(W) Flyfi refl y MAS 30703 CFM56-7B26 2006-05 Sub-Leased 2011.01.01737-8Q8(W) Wells Fargo ILFC 30720 CFM56-7B26 2007-03 Sold 2011.01.27737-8AS(W) RBS Aerospace Ryanair 33557 CFM56-7B24 2003-12 Returned 2011.01.26737-881(W) All Nippon Airways Arieru Leasing 33901 CFM56-7B26 2010-10 Sale-Leaseback 2011.01.28737-86N(W) Neos Celestial Aviation 34257 CFM56-7B26 2006-07 Leased 2011.01.26737-8AS(W) Ryanair Boeing 35036 CFM56-7B24 2011-01 Delivered 2011.01.28737-8AS(W) Ryanair Boeing 35037 CFM56-7B24 2010-12 Delivered 2011.01.25737-8AS(W) Ryanair Boeing 35038 CFM56-7B24 2010-12 Delivered 2011.01.25737-890(W) Alaska Airlines Boeing 35201 CFM56-7B27 2010-12 Delivered 2011.01.25737-890(W) Alaska Airlines Boeing 35202 CFM56-7B27 2010-12 Delivered 2011.01.24737-8HG(W) Air India Express Kai Ting Aircraft 36338 CFM56-7B26 2009-06 Sale-Leaseback 2011.01.12737-8HG(W) Kai Ting Aircraft Air India 36339 CFM56-7B26 2009-09 Sold 2011.01.12737-8HG(W) Air India Express Kai Ting Aircraft 36339 CFM56-7B26 2009-09 Leased 2011.01.12737-8HG(W) Air India Express Kai Ting Aircraft 36340 CFM56-7B26 2009-11 Sale-Leaseback 2011.01.12737-8K5(W) Tui Travel Boeing 37248 CFM56-7B27B1 2011-01 Delivered 2011.01.31737-8K5(W) Thomson Airways Tui Travel 37248 CFM56-7B27B1 2011-01 Leased 2011.01.31737-8Q8(W) ILFC Boeing 38819 CFM56-7B26 2010-12 Delivered 2011.01.28737-8Q8(W) Xl Airways France ILFC 38819 CFM56-7B26 2010-12 Leased 2011.01.28737-8JP(W) NAS Boeing 39045 CFM56-7B26 2011-01 Delivered 2011.01.27737-8JP(W) JSA Intl Boeing Company 39045 CFM56-7B26 2011-01 Sold 2011.01.27737-8JP(W) NAS JSA International 39045 CFM56-7B26 2011-01 Leased 2011.01.27737-8U3(W) RBS Aerospace Boeing 39920 CFM56-7B26 2010-12 Delivered 2011.01.14737-8U3(W) Garuda Airways RBS Aerospace 39920 CFM56-7B26 2010-12 Leased 2011.01.14737-89L(W) Air China Boeing 40015 CFM56-7B26 2010-12 Delivered 2011.01.31737-8KN(W) Flydubai Boeing 40241 CFM56-7B26 2010-12 Delivered 2011.01.19737-8AS(W) Ryanair Boeing 40300 CFM56-7B24 2010-12 Delivered 2011.01.13737-8AS(W) Ryanair Boeing 40301 CFM56-7B24 2010-12 Delivered 2011.01.19737-8AS(W) Ryanair Boeing 40302 CFM56-7B24 2011-01 Delivered 2011.01.28737-8AS(W) Ryanair Boeing 40303 CFM56-7B24 2010-12 Delivered 2011.01.24737-8AS(W) Ryanair Boeing 40304 CFM56-7B24 2011-01 Delivered 2011.01.28737-846(W) Japan Airlines Boeing 40350 CFM56-7B24 2010-12 Delivered 2011.01.27737-846(W) JJ Phoenix Boeing 40350 CFM56-7B24 2010-12 Sold 2011.01.27737-846(W) Japan Airlines JJ Phoenix 40350 CFM56-7B24 2010-12 Leased 2011.01.27737-82R(W) Pegasus Airlines Boeing 40720 CFM56-7B26 2010-12 Delivered 2011.01.24737-890(W) Alaska Airlines Boeing (2) CFM56-7B26 2012-12 Ordered 2011.01.25737-8H6(W) MAS Boeing (10) CFM56-7B26 2016-01 Ordered 2011.01.30737-8FVERX Boeing Boeing 40595 CFM56-7B27 2010-12 Transferred 2011.01.22737-8FVERX US Navy Boeing (6) CFM56-7BE27 2012-10 Ordered 2011.01.21737-990ER(W) Alaska Airlines Boeing (13) CFM56-7B27 2014-03 Ordered 2011.01.25737-990ER(W) Alaska Airlines Boeing [15] CFM56-7B27 2016-02 Optioned 2011.01.25747-341 Air Atlanta Icelandic Saudi Arabian Airlines 24108 CF6-80C2B1 1988-04 Returned 2011.01.03747-446 Aersale Japan Airlines 25260 CF6-80C2B1F 1991-08 Sold 2011.01.07747-481 All Nippon Airways 25645 CF6-80C2B1F 1993-04 Returned 2011.01.25747-446 Wells Fargo Japan Airlines 26362 CF6-80C2B1F 1999-01 Sold 2011.01.24747-422 Atlas Air United Air Lines 26892 PW4056 1996-08 Leased 2011.01.18757-232 Federal Express Wilmington Trust 22909 PW2037 1986-05 Sold 2011.01.07757-232 Federal Express Wilmington Trust 22912 PW2037 1986-09 Sold 2011.01.04757-251 Kellstrom Wells Fargo 23197 PW2037 1985-06 Sold 2011.01.26757-23A(ETOPS) Astraeus Airlines Saudi Arabian Airlines 24292 RB211-535E4 1989-02 Returned 2011.01.12757-236(ETOPS) Santa Barbara Airlines Pegasus Aviation 24370 RB211-535E4 1989-02 Leased 2011.01.04757-236(ETOPS) Neodell Thomson Airways 25593 RB211-535E4 1992-05 Returned 2011.01.15757-236(ETOPS) Federal Express Neodell 25593 RB211-535E4 1992-05 Sold 2011.01.21757-2Q8(WETOPS) Wells Fargo ACG Acquisition 25624 PW2037 1993-03 Transferred 2011.01.28757-2Q8(WETOPS) Delta Air Lines Wells Fargo 25624 PW2037 1993-03 Leased 2011.01.28757-236 Federal Express British Airways 25806 RB211-535E4 1994-01 Sold 2011.01.12757-256 Privilege Style Safi Airways 26241 RB211-535E4 1993-07 Returned 2011.01.10757-28A(ETOPS) Aerolinea Principal Chile Mint Airways 26276 RB211-535E4 1996-02 Sub-Leased 2011.01.22757-2Z0 SF Airlines Air China 27269 RB211-535E4 1994-04 Sold 2011.01.01757-236 Thomas Cook Airlines Wells Fargo 29945 RB211-535E4 1999-05 Leased 2011.01.17757-236 Thomas Cook Airlines Wells Fargo 29946 RB211-535E4 1999-06 Leased 2011.01.27767-281 Cargo Aircraft Mgmt Abx Air 23141 CF6-80A 1984-11 Returned 2011.01.25767-246 Dynamic Jetlease Au7 23213 JT9D-7R4D 1985-04 Sold 2011.01.05767-2EYER(TT) Boeing Boeing Defense 33689 CF6-80C2B6FA 2007-01 Returned 2011.01.12767-2EYER(TT) Italian Air Force Boeing Company 33689 CF6-80C2B6FA 2007-01 Sold 2011.01.12767-3G5ER Wilmington Trust ILFC 24258 PW4060 1989-01 Sold 2011.01.10767-3G5ER Hawaiian Airlines Wilmington Trust 24258 PW4060 1989-01 Leased 2011.01.10767-383ER BCI Tui Airlines 24848 PW4060 1990-07 Returned 2011.01.26767-383ER Global Knafaim Leasing BCI 24848 PW4060 1990-07 Sold 2011.01.27767-383ER Business Air Global Knafaim Leasing 24848 PW4060 1990-07 Leased 2011.01.27767-319ER Omni Air Omni viation 24875 CF6-80C2B6 1991-05 Leased 2011.01.31767-3Y0ER GMG Airlines Aerousa. 24948 PW4060 1991-06 Leased 2011.01.13767-3Q8ER China Eastern Shanghai Airlines 28207 PW4060 1998-03 Sub-Leased 2011.01.01767-36DER China Eastern Shanghai Airlines 35155 PW4062 2006-07 Leased 2011.01.01767-36DER China Eastern Shanghai Airlines 35156 PW4062 2006-11 Leased 2011.01.01767-381ER(W) All Nippon Airways Titan Leasing 40565 CF6-80C2B6F 2010-10 Sale-Leaseback 2011.01.31767-381ER All Nippon Airways Boeing 40566 CF6-80C2B6F 2010-12 Delivered 2011.01.17777-212ER Euro Atlantic Airways Biman Bangladesh 28513 TRENT892B 1998-05 Returned 2011.01.31777-260LR Ethiopian Airlines Boeing 40772 GE90-110B1L 2011-01 Delivered 2011.01.26777-39MER Air France Boeing 37434 GE90-115B 2010-12 Delivered 2011.01.20777-39MER ALC Boeing Company 37434 GE90-115B 2010-12 Sold 2011.01.20777-39MER Air Austral ALC 37434 GE90-115B 2010-12 Leased 2011.01.20777-3F2ER Turk Hava Yollari Boeing 40710 GE90-115B 2010-12 Delivered 2011.01.24







777-323ER American Airlines Boeing (2) GE90-115B 2012-10 Ordered 2011.01.18A300B4-622R Wells Fargo Japan Airlines 641 PW4158 1992-05 Sold 2011.01.20A310-222V Phoenix Aircraft Air Bagan 419 JT9D-7R4E1 1986-04 Returned 2011.01.14A310-304 Global Principal Finance Royal Jordanian 416 CF6-80C2A2 1986-03 Sold 2011.01.07A318-111 Avianca Wells Fargo 2328 CFM56-5B8/P 2004-10 Leased 2011.01.26A319-112 CIT Leasing Royal Falcon Jordan 1124 CFM56-5B6/2P 1999-10 Returned 2011.01.23A319-112 Wells Fargo Wilmington Trust 1124 CFM56-5B6/2P 1999-10 Sold 2011.01.23A319-112 TACA Wells Fargo 1598 CFM56-5B6/P 2001-10 Leased 2011.01.21A319-112 Lan Airlines Wells Fargo 1612 CFM56-5B6/P 2001-10 Leased 2011.01.10A319-112 Aerolineas Galapagos ILFC 1866 CFM56-5B6/P 2002-11 Leased 2011.01.11A319-112 Aerolineas Galapagos ILFC 1872 CFM56-5B6/P 2002-11 Leased 2011.01.19A319-132 ILFC Mandala Airlines 2784 V2524-A5 2006-05 Returned 2011.01.13A319-132 ILFC Mandala Airlines 2797 V2524-A5 2006-05 Returned 2011.01.13A319-112 Whitney US Leasing Wells Fargo 3790 CFM56-5B6/3 2009-02 Sold 2011.01.18A319-112 Whitney US Leasing Wells Fargo 4275 CFM56-5B6/3 2010-04 Sold 2011.01.10A319-112 Brussels Airlines Whitney Leasing 4275 CFM56-5B6/3 2010-04 Leased 2011.01.14A319-132 Lan Airlines Airbus 4563 V2524-A5 2011-01 Delivered 2011.01.26ACJ319-115 Aircraft Rental Leasing Global Jet Aircraft 2837 CFM56-5B7/P 2006-08 Sold 2011.01.13ACJ319-115 Investec Intl Aircraft Rental Leasing. 2837 CFM56-5B7/P 2006-08 Leased 2011.01.13ACJ319-115 Reliance Commercial Reliance Commercial Pvt. 2837 CFM56-5B7/P 2006-08 Sub-Leased 2011.01.13ACJ319-115 Airbus Volkswagen Ag 4024 CFM56-5B7/3 2009-09 Leased 2011.01.01A320-214 Unknown Lotus Airline 1054 CFM56-5B4/2P 1999-06 Returned 2011.01.21A320-214 Celestial Aviation AFS Investments 1171 CFM56-5B4/P 2000-01 Sold 2011.01.14A320-214 Hello Celestial Aviation 1171 CFM56-5B4/P 2000-01 Leased 2011.01.14A320-233 Wells Fargo Wells Fargo 1339 V2527E-A5 2000-10 Transferred 2011.01.25A320-233 Tam Linhas Aereas Wells Fargo 1339 V2527E-A5 2000-10 Leased 2011.01.25A320-214 ILFC Turkuaz Airlines 2048 CFM56-5B4/P 2003-06 Returned 2011.01.28A320-214 Sky Airline Air Malta 2665 CFM56-5B4/P 2005-12 Sub-Leased 2011.01.03A320-214 Air Berlin Belair Airlines 2991 CFM56-5B4/P 2006-12 Returned 2011.01.21A320-214 Azerbaijan Airlines Air Berlin 2991 CFM56-5B4/P 2006-12 Leased 2011.01.21A320-232 Amentum Leasing Mandala Airlines 3524 V2527-A5 2008-06 Sold 2011.01.31A320-232 Amentum Leasing Mandala Airlines 3543 V2527-A5 2008-06 Sold 2011.01.31A320-212 Aerco Mandala Airlines 391 CFM56-5A3 1992-12 Returned 2011.01.13A320-212 Wells Fargo Aerco 391 CFM56-5A3 1992-12 Sold 2011.01.26A320-211 Smartlynx Airlines Israir 426 CFM56-5A1 1993-04 Returned 2011.01.07A320-214 Philippine Airlines Avolon 4415 CFM56-5B4/3 2010-09 Sale-Leaseback 2011.01.01A320-214 Air Philippines Air Philippines 4415 CFM56-5B4/3 2010-09 Sub-Leased 2011.01.02A320-214 Juneyao Airlines Airbus 4429 CFM56-5B4/3 2010-12 Delivered 2011.01.13A320-232 Shenzhen Airlines Airbus 4435 V2527-A5 2011-01 Delivered 2011.01.21A320-214 Philippine Airlines Avolon 4504 CFM56-5B4/3 2010-11 Sale-Leaseback 2011.01.01A320-214 Air Philippines Air Philippines 4504 CFM56-5B4/3 2010-11 Sub-Leased 2011.01.02A320-214 Air Arabia Airbus 4539 CFM56-5B4/3 2010-12 Delivered 2011.01.06A320-233 BOC Aviation Airbus 4543 V2527E-A5 2010-12 Delivered 2011.01.12A320-233 Arcu Aircraft Leasing Airbus 4543 V2527E-A5 2010-12 Sold 2011.01.12A320-233 Lan Airlines Arcu Aircraft Leasing 4543 V2527E-A5 2010-12 Leased 2011.01.12A320-232 CIT Leasing Airbus 4548 V2527-A5 2010-12 Delivered 2011.01.17A320-232 Spirit Airlines CIT Leasing 4548 V2527-A5 2010-12 Leased 2011.01.17A320-232 British Airways Airbus 4551 V2527-A5 2010-12 Delivered 2011.01.18A320-232 Air Lease Airbus 4553 V2527-A5 2010-12 Delivered 2011.01.27A320-232 Air New Zealand Air Lease Corp 4553 V2527-A5 2010-12 Leased 2011.01.27A320-214 Easyjet Airbus 4554 CFM56-5B4/3 2010-12 Delivered 2011.01.06A320-214 GECAS Airbus 4555 CFM56-5B4/3 2011-01 Delivered 2011.01.31A320-214 Acquarius Airbus 4555 CFM56-5B4/3 2011-01 Sold 2011.01.31A320-214 Star Flyer Acquarius 4555 CFM56-5B4/3 2011-01 Leased 2011.01.31A320-214 Easyjet Airbus 4556 CFM56-5B4/3 2010-12 Delivered 2011.01.12A320-216 AirAsia Airbus 4557 CFM56-5B6/3 2011-01 Delivered 2011.01.20A320-216 Thai AirAsia Airasia 4557 CFM56-5B6/3 2011-01 Leased 2011.01.20A320-214 ACG Airbus 4558 CFM56-5B4/3 2011-01 Delivered 2011.01.20A320-214 Bank Of Utah Airbus 4558 CFM56-5B4/3 2011-01 Sold 2011.01.20A320-214 Virgin America Bank Of Utah 4558 CFM56-5B4/3 2011-01 Leased 2011.01.20A320-214 GECAS Airbus 4559 CFM56-5B4/3 2011-01 Delivered 2011.01.25A320-214 AFS Investments Airbus 4559 CFM56-5B4/3 2011-01 Sold 2011.01.25A320-214 Virgin America AFS Investments 4559 CFM56-5B4/3 2011-01 Leased 2011.01.25A320-214 AWAS Airbus 4562 CFM56-5B4/3 2011-01 Delivered 2011.01.18A320-214 AWAS Airbus 4562 CFM56-5B4/3 2011-01 Sold 2011.01.18A320-214 Frontier Airlines AWAS 4562 CFM56-5B4/3 2011-01 Leased 2011.01.18A320-214 GECAS Airbus 4564 CFM56-5B4/3 2011-01 Delivered 2011.01.31A320-214 Saudi Airlines GECAS 4564 CFM56-5B4/3 2011-01 Leased 2011.01.31A320-214 Air Berlin Airbus 4565 CFM56-5B4/3 2011-01 Delivered 2011.01.19A320-214 Air Berlin GECAS 4565 CFM56-5B4/3 2011-01 Sale-Leaseback 2011.01.19A320-214 Air Arabia Airbus 4568 CFM56-5B4/3 2011-01 Delivered 2011.01.31A320-214 Air Arabia Seagull 4568 CFM56-5B4/3 2011-01 Sale-Leaseback 2011.01.31A320-232 Aerventure Airbus 4569 V2527-A5 2011-01 Delivered 2011.01.28A320-232 Hainan Airlines Aerventure 4569 V2527-A5 2011-01 Leased 2011.01.28A320-232 China West Air Airbus 4569 V2527-A5 2011-01 Sub-Leased 2011.01.28A320-214 Aer Lingus Airbus 4572 CFM56-5B4/3 2011-01 Delivered 2011.01.21A320-214 Cebu Pacifi c Air Airbus 4574 CFM56-5B4/3 2011-01 Delivered 2011.01.25A320-214 BOC Aviation Airbus 4579 CFM56-5B4/3 2011-01 Delivered 2011.01.31A320-214 Aerofl ot Airlines BOC Aviation 4579 CFM56-5B4/3 2011-01 Leased 2011.01.31A320-214 Niki Luftfahrt Airbus 4581 CFM56-5B4/3 2011-01 Delivered 2011.01.27A320-214 Lift Ib Spain Spring Airlines 879 CFM56-5B4/P 1998-08 Returned 2011.01.07A320-214 Senegal Airlines Lift Ib Spain 879 CFM56-5B4/P 1998-08 Leased 2011.01.07A321-231 Asiana Airlines Wells Fargo 1174 V2533-A5 2000-02 Leased 2011.01.31A321-231 Asiana Airlines AWAS 1970 V2533-A5 2003-05 Leased 2011.01.07A321-231 Air Busan AWAS 1970 V2533-A5 2003-05 Sub-Leased 2011.01.07A321-211 Bellevue Aircraft Leasing Atlasjet International 2117 CFM56-5B3/P 2003-12 Returned 2011.01.14A321-231 Wind Rose Easyjet 2462 V2533-A5 2005-04 Leased 2011.01.27A321-231 Wind Rose Easyjet 2682 V2533-A5 2006-01 Leased 2011.01.28A321-211 Saudi Airlines Airbus 4542 CFM56-5B3/3 2011-01 Delivered 2011.01.24A321-231 Lufthansa Airbus 4560 V2533-A5 2011-01 Delivered 2011.01.12







A321-211 Saudi Airlines Airbus 4577 CFM56-5B3/3 2011-01 Delivered 2011.01.31A321-211(W) Thomas Cook Airlines Airbus (12) CFM56-5B3/3 2014-08 Ordered 2011.01.25A330-243 MTAD Airbus 1186 TRENT772B-60 2010-12 Delivered 2011.01.14A330-343E Aerolinea Principal Chile Iberworld Airlines 1097 TRENT772B-60 2010-02 Sub-Leased 2011.01.05A330-343 Air China Airbus 1187 TRENT772C-60 2010-12 Delivered 2011.01.25A330-343E Swiss International Airbus 1188 TRENT772B-60 2010-12 Delivered 2011.01.21A330-343E Saudi Airlines Airbus 1189 TRENT772B-60 2010-12 Delivered 2011.01.12A330-343 HKIA Leasing Airbus 1190 TRENT772B-60 2010-12 Delivered 2011.01.25A330-343 Hainan Airlines HKIA Leasing 1190 TRENT772B-60 2010-12 Leased 2011.01.25A330-303 GECAS Airbus (2) CF6-80E1A3 2012-01 Ordered 2011.01.24A330-302 GECAS Airbus (10) CF6-80E1A4B 2014-10 Ordered 2011.01.24A330-300 Tui Travel Airbus (2) 2015-04 Ordered 2011.01.27A340-313X Hi Fly Adagold Aviation 117 CFM56-5C4 1995-08 Returned 2011.01.01A340-313X Adagold Aviation Adagold Aviation 117 CFM56-5C4 1995-08 Sub-Leased 2011.01.02A340-313X Hi Fly Air Algerie 450 CFM56-5C4 2002-01 Returned 2011.01.01A340-313X Adagold Aviation Air Algerie 450 CFM56-5C4 2002-01 Sub-Leased 2011.01.02A380-842 Qantas Airways Airbus 050 TRENT972-84 2009-08 Delivered 2011.01.31A380-842 Qantas Airways Qf Eca A380 050 TRENT972-84 2009-08 Sale-Leaseback 2011.01.31A380-842 Qantas Airways Airbus 055 TRENT972-84 2010-07 Delivered 2011.01.13A380-842 Qantas Airways Qf Eca A380 055 TRENT972-84 2010-07 Sale-Leaseback 2011.01.13A380-841 Asiana Airlines Airbus (6) TRENT970-84 2014-04 Ordered 2011.01.06

FEBRUARY717-2K9 Blue1 Bavaria Leasing 55053 BR715A1-30 1999-12 Leased 2011.02.19717-231 Airtran Airways Hawk Leasing 55074 BR715A1-30 2000-07 Leased 2011.02.28717-231 Airtran Airways BCC Leasing 55081 BR715A1-30 2000-12 Leased 2011.02.07727-21 Al Salam Aircraft Express Camel Aviation 19006 JT8D-7A 1966-03 Sold 2011.02.01737-291 OH Capital Assets Cavalier Sports Marketing 21069 JT8D-9A 1975-04 Sold 2011.02.14737-205 Icaro Express Arrivair 22022 JT8D-17A 1979-10 Sold 2011.02.15737-228 Trigana Air Service Wells Fargo 23004 JT8D-15A 1983-01 Leased 2011.02.01737-3H4 Infi nity Trading Wells Fargo 22947 CFM56-3B1 1985-09 Sold 2011.02.18737-3T0(W) Continental Airlines Continental Airlines 23375 CFM56-3B1 1986-02 Sold 2011.02.17737-3T0(W) As & L Continental Airlines 23375 CFM56-3B1 1986-02 Sold 2011.02.17737-3S3 ACG Acquisition Aerolineas Galapagos 23787 CFM56-3B2 1987-03 Returned 2011.02.17737-322 Unknown Gol Transportes Aereos 23952 CFM56-3B2 1988-03 Returned 2011.02.18737-322 Brickell Asset Mgmt Wells Fargo 24538 CFM56-3C1 1989-08 Sold 2011.02.28737-33A Viva Aerobus Ansett Aviation 25032 CFM56-3C1 1991-02 Leased 2011.02.25737-33A Webjet Linhas Aereas CIT Aerospace 25033 CFM56-3B2 1991-03 Leased 2011.02.04737-33A Wells Fargo Wells Fargo 25138 CFM56-3B2 1991-10 Sold 2011.02.17737-3Y5 BCC Leasing Boeing Capital 25614 CFM56-3C1 1993-04 Sold 2011.02.09737-3L9 Celestial Aviation Norwegian 27337 CFM56-3C1 1994-03 Returned 2011.02.16737-3L9 Sriwijaya Air Celestial Aviation 27337 CFM56-3C1 1994-03 Leased 2011.02.25737-36M Ames-Camo Central Connect 28333 CFM56-3C1 1996-07 Returned 2011.02.01737-36N Viva Aerobus Aircraft Finance Trust 28563 CFM56-3C1 1997-07 Leased 2011.02.11737-4Y0 Sky King Wells Fargo 23866 CFM56-3C1 1988-07 Leased 2011.02.15737-4C9 Enter Air Volito Aviation 25429 CFM56-3C1 1992-01 Leased 2011.02.04737-436 Dillondell Air One [Italy] 25851 CFM56-3C1 1992-10 Returned 2011.02.01737-46J East Air Twelth Waha Lease. 27213 CFM56-3C1 1994-02 Leased 2011.02.27737-4K5 Wells Fargo Japan Transocean Air 27830 CFM56-3C1 1994-10 Sold 2011.02.28737-548(W) Deta Air Barkham Associates 24919 CFM56-3B1 1990-11 Leased 2011.02.28737-524(W) Continental Airlines Wells Fargo 28901 CFM56-3C1 1997-07 Lease-Buyout 2011.02.15737-524(W) Continental Airlines Continental Airlines 28901 CFM56-3C1 1997-07 Sold 2011.02.16737-524(W) Wells Fargo Continental Airlines 28901 CFM56-3C1 1997-07 Sold 2011.02.16737-73S(W) Jet Time Elviria Leasing. 29083 CFM56-7B22 1999-09 Leased 2011.02.28737-7BX(W) Southwest Airlines ALC B377 30746 30746 CFM56-7B20 2002-02 Leased 2011.02.28737-73V(W) Wells Fargo Macquarie Aircraft 32423 CFM56-7B20 2003-12 Sold 2011.02.23737-73V(W) Aeromexico Wells Fargo 32423 CFM56-7B20 2003-12 Leased 2011.02.28737-73V BOC Aviation Easyjet 32427 CFM56-7B20 2004-03 Returned 2011.02.21737-7BD(W) Cameroon Airlines ACG 34480 CFM56-7B20 2006-03 Leased 2011.02.28737-7H4(W) Southwest Airlines Boeing 36669 CFM56-7B24 2011-01 Delivered 2011.02.10737-7H4(W) Southwest Airlines Boeing (1) CFM56-7B24 2011-11 Ordered 2011.02.07737-83N(WETOPS) ILFC Saga Airlines 28249 CFM56-7B27B1 2002-04 Returned 2011.02.09737-86N(W) Yakutia Airlines Oh Aircraft I-15 28617 CFM56-7B26 2000-02 Leased 2011.02.10737-81Q BBAM Moscow Airlines 29052 CFM56-7B26 2000-04 Returned 2011.02.28737-8F2(W) Turk Hava Yollari Anadolujet 29778 CFM56-7B26 1999-07 Returned 2011.02.01737-8AS(W) Spicejet Wilmington Trust 29925 CFM56-7B24 2000-05 Leased 2011.02.18737-883 SAS Moskovia Airlines 30467 CFM56-7B26 2000-07 Returned 2011.02.16737-83N(WETOPS) ILFC Saga Airlines 30706 CFM56-7B27B1 2001-08 Returned 2011.02.09737-8AS(W) RBS Aerospace Ryanair 33558 CFM56-7B24 2004-01 Returned 2011.02.06737-8AS(W) RBS Aerospace Ryanair 33559 CFM56-7B24 2004-01 Returned 2011.02.11737-8AS(W) RBS Aerospace Ryanair 33560 CFM56-7B24 2004-01 Returned 2011.02.22737-838(W) Qantas Airways Boeing 34185 CFM56-7B24 2011-01 Delivered 2011.02.14737-838(W) Jetconnect Qantas Airways 34185 CFM56-7B24 2011-01 Leased 2011.02.14737-838(W) Qantas Airways Boeing 34203 CFM56-7B24 2010-12 Delivered 2011.02.01737-838(W) Jetconnect Qantas Airways 34203 CFM56-7B24 2010-12 Leased 2011.02.01737-838(W) Qantas Airways Boeing 34204 CFM56-7B24 2011-01 Delivered 2011.02.16737-838(W) Jetconnect Qantas Airways 34204 CFM56-7B24 2011-01 Leased 2011.02.16737-8AS(W) Ryanair Boeing 35039 CFM56-7B24 2011-01 Delivered 2011.02.10737-8AS(W) Ryanair Boeing 35040 CFM56-7B24 2011-01 Delivered 2011.02.09737-8AS(W) Ryanair Boeing 35041 CFM56-7B24 2011-01 Delivered 2011.02.03737-8AS(W) Ryanair Boeing 35042 CFM56-7B24 2011-02 Delivered 2011.02.25737-890(W) Alaska Airlines Boeing 35200 CFM56-7B27 2011-01 Delivered 2011.02.22737-86N(W) Celestial Amc Airlines 35220 CFM56-7B26 2007-09 Returned 2011.02.28737-8K5(W) Tui Travel Boeing 37252 CFM56-7B27B1 2011-01 Delivered 2011.02.17737-8K5(W) ACG Tui Travel 37252 CFM56-7B27B1 2011-01 Sold 2011.02.17737-8K5(W) Tuifl y ACG 37252 CFM56-7B27B1 2011-01 Leased 2011.02.17737-8GJ(W) Spicejet Boeing 37365 CFM56-7B24 2011-01 Delivered 2011.02.04737-8GJ(W) Virgodell Boeing 37365 CFM56-7B24 2011-01 Sold 2011.02.04737-8GJ(W) Spicejet Virgodell Ltd. 37365 CFM56-7B24 2011-01 Leased 2011.02.04737-86J(W) Pegasus Airlines Air Berlin 37746 CFM56-7B26 2009-11 Sold 2011.02.17







737-86J(W) Air Berlin Boeing 37760 CFM56-7B26 2011-01 Delivered 2011.02.15737-86J(W) Air Berlin ALC B738 37760 37760 CFM56-7B26 2011-01 Sale-Leaseback 2011.02.15737-86N(W) GECAS Boeing 38011 CFM56-7B26 2011-01 Delivered 2011.02.01737-86N(W) China Eastern GECAS 38011 CFM56-7B26 2011-01 Leased 2011.02.01737-86N(W) Shanghai Airlines Boeing 38011 CFM56-7B26 2011-01 Sub-Leased 2011.02.01737-86N(W) GECAS Boeing 38012 CFM56-7B26 2011-01 Delivered 2011.02.16737-86N(W) Xiamen Airlines GECAS 38012 CFM56-7B26 2011-01 Leased 2011.02.16737-86N(W) GECAS Boeing 38013 CFM56-7B26 2011-02 Delivered 2011.02.24737-86N(W) Shandong Airlines GECAS 38013 CFM56-7B26 2011-02 Leased 2011.02.24737-8K5(W) ACG Boeing 38097 CFM56-7B26 2011-01 Delivered 2011.02.16737-8K5(W) Tuifl y Nordic Bank Of Utah 38097 CFM56-7B26 2011-01 Leased 2011.02.16737-8JP(W) NAS Boeing 39046 CFM56-7B26 2011-01 Delivered 2011.02.22737-8JP(W) JSA Intl Boeing 39046 CFM56-7B26 2011-01 Sold 2011.02.22737-8JP(W) NAS JSA International 39046 CFM56-7B26 2011-01 Leased 2011.02.22737-81D(W) AWAS Boeing 39412 CFM56-7B26 2011-01 Delivered 2011.02.22737-81D(W) AWAS Boeing 39412 CFM56-7B26 2011-01 Sold 2011.02.22737-81D(W) NAS AWAS 39412 CFM56-7B26 2011-01 Leased 2011.02.22737-8FE(W) RBS Aerospace Boeing 39921 CFM56-7B26 2011-01 Delivered 2011.02.02737-8FE(W) RBS Aerospace Boeing 39921 CFM56-7B26 2011-01 Sold 2011.02.02737-8FE(W) Virgin Blue Airlines RBS Aerospace 39921 CFM56-7B26 2011-01 Leased 2011.02.02737-8KN(W) Flydubai Boeing 40242 CFM56-7B26 2011-01 Delivered 2011.02.07737-8KN(W) Flydubai Fly Leasing 40242 CFM56-7B26 2011-01 Sale-Leaseback 2011.02.07737-8AS(W) Ryanair Boeing 40305 CFM56-7B24 2011-01 Delivered 2011.02.18737-8AS(W) Ryanair Boeing 40306 CFM56-7B24 2011-01 Delivered 2011.02.17737-8AS(W) Ryanair Boeing 40307 CFM56-7B24 2011-01 Delivered 2011.02.07737-8AS(W) Ryanair Boeing 40308 CFM56-7B24 2011-02 Delivered 2011.02.25737-846(W) Japan Airlines Boeing 40351 CFM56-7B24 2011-01 Delivered 2011.02.09737-846(W) JJ Phoenix Boeing Company 40351 CFM56-7B24 2011-01 Sold 2011.02.09737-846(W) Japan Airlines JJ Phoenix 40351 CFM56-7B24 2011-01 Leased 2011.02.09737-86J(W) Air Berlin Boeing (-2) CFM56-7B26 - Cncl-Order 2011.02.01747-281B(F) Veteran Airline Wells Fargo 24399 CF6-50E2 1989-07 Leased 2011.02.28747-412 RB Leasing Pullmantur Air 26555 PW4056 1996-02 Returned 2011.02.28747-412 El Al Wilmington Trust 26555 PW4056 1996-02 Sold 2011.02.28757-251 Delta Air Lines US Bank 23846 PW2037 1988-07 Lease-Buyout 2011.02.07757-21B ACG China Southern 25083 RB211-535E4 1991-03 Returned 2011.02.01757-28A(ETOPS) Mint Airways Aerolinea Principal 26276 RB211-535E4 1996-02 Returned 2011.02.13757-28A Westjet North American Airlines 26277 RB211-535E4 1994-12 Sub-Leased 2011.02.13757-204 Jet2 Abbey National 26967 RB211-535E4 1993-01 Leased 2011.02.11757-29J Aerolease Boeing Capital 27204 PW2037 1993-11 Sold 2011.02.18757-29J Brickell Asset Mgmt Aerolease 27204 PW2037 1993-11 Sold 2011.02.18767-246 Au7 Japan Airlines 23214 JT9D-7R4D 1985-06 Sold 2011.02.02767-246 Dynamic Jetlease Au7 23214 JT9D-7R4D 1985-06 Sold 2011.02.02767-283ER ACG Avianca 24728 PW4060 1990-04 Returned 2011.02.01767-3G5ER Wilmington Trust ILFC 24257 PW4060 1988-12 Sold 2011.02.03767-3G5ER Hawaiian Airlines Wilmington Trust 24257 PW4060 1988-12 Leased 2011.02.03767-383ER Icelandair Santa Barbara Airlines 25365 PW4060 1991-09 Returned 2011.02.22767-33AER Aerosvit Airlines Royal Brunei Airlines 25533 PW4056 1992-08 Leased 2011.02.12767-322ER Wells Fargo Wells Fargo 27114 PW4060 1993-02 Sold 2011.02.04767-322ER United Air Lines Wells Fargo 27114 PW4060 1993-02 Leased 2011.02.04767-322ER Wells Fargo Wells Fargo 27158 PW4060 1993-06 Sold 2011.02.04767-322ER United Air Lines Wells Fargo 27158 PW4060 1993-06 Leased 2011.02.04767-343ER GECAS Alitalia 30009 CF6-80C2B6F 1999-03 Returned 2011.02.20767-346ER Japan Airlines Boeing 40366 CF6-80C2B7F 2010-11 Delivered 2011.02.03767-381ER All Nippon Airways Boeing 40567 CF6-80C2B6F 2011-01 Delivered 2011.02.22767-316ER Lan Airlines Boeing (3) CF6-80C2B7F 2012-07 Ordered 2011.02.15777-36NER GECAS Boeing 38290 GE90-115B 2011-01 Delivered 2011.02.22777-36NER Egyptair GECAS 38290 GE90-115B 2011-01 Leased 2011.02.22777-319ER Air New Zealand Boeing 38406 GE90-115B 2010-12 Delivered 2011.02.15777-319ER DAE Leasing Boeing Company 38406 GE90-115B 2010-12 Sold 2011.02.15777-319ER Air New Zealand DAE Leasing 38406 GE90-115B 2010-12 Leased 2011.02.15777-306ER Air France Boeing 39972 GE90-115B 2011-01 Delivered 2011.02.07777-306ER KLM Air France 39972 GE90-115B 2011-01 Leased 2011.02.07777-3F2ER Turk Hava Yollari Boeing 40711 GE90-115B 2011-01 Delivered 2011.02.07777-3F2ER Turk Hava Yollari Boeing 40793 GE90-115B 2011-01 Delivered 2011.02.23777-3FXER Etihad Airways Boeing (3) GE90-115B 2013-04 Ordered 2011.02.07777-32WER Tam Linhas Aereas Boeing (2) GE90-115B 2014-08 Ordered 2011.02.25777-3M0ER Aerofl ot Airlines Boeing (8) GE90-115B 2013-10 Ordered 2011.02.28787-9FX Etihad Airways Boeing (-4) GENX-1B70 - Cncl-Order 2011.02.01A300B4-622R Wells Fargo Japan Airlines 729 PW4158 1994-02 Sold 2011.02.24A300B4-622R Wells Fargo Japan Airlines 753 PW4158 1995-05 Sold 2011.02.14A300B4-622R Wells Fargo Japan Airlines 770 PW4158 1996-03 Sold 2011.02.14A318-111 Avianca Wells Fargo 2333 CFM56-5B8/P 2004-10 Leased 2011.02.22A319-112 Aerolineas Galapagos ILFC 1882 CFM56-5B6/P 2002-12 Leased 2011.02.03A319-112 Aerolineas Galapagos ILFC 1925 CFM56-5B6/P 2003-02 Leased 2011.02.16A319-112 Calliope ILFC 2126 CFM56-5B6/P 2004-01 Sold 2011.02.28A319-112 Aerolineas Galapagos Calliope Ltd. 2126 CFM56-5B6/P 2004-01 Leased 2011.02.28A319-132 Belle Air Europe Belle Air 2335 V2524-A5 2004-10 Sub-Leased 2011.02.14A319-112 Germania Unknown Lessor 3589 CFM56-5B6/3 2008-07 Leased 2011.02.24A319-112 Brussels Airlines Whitney US Leasing 3790 CFM56-5B6/3 2009-02 Leased 2011.02.03A319-132 Lan Airlines Airbus 4598 V2524-A5 2011-02 Delivered 2011.02.15A319-132 Lan Airlines Bandurria Leasing 4598 V2524-A5 2011-02 Sale-Leaseback 2011.02.15A319-132 Lan Airlines Airbus 4605 V2524-A5 2011-02 Delivered 2011.02.17A319-132 Lan Airlines Bandurria Leasing . 4605 V2524-A5 2011-02 Sale-Leaseback 2011.02.17ACJ319-115 Sonair China Sonangol 2675 CFM56-5B7/P 2006-02 Returned 2011.02.01ACJ319-115 White Airways Sonair 2675 CFM56-5B7/P 2006-02 Sold 2011.02.02ACJ319-133 Hilly Sky Group Airbus 4583 V2527M-A5 2011-02 Delivered 2011.02.22ACJ319-100 Unknown Airbus (1) 2015-02 Ordered 2011.02.01A320-211 GA Telesis British Airways 042 CFM56-5A1 1989-04 Returned 2011.02.28A320-214 CIT LTU International 1385 CFM56-5B4/P 2000-12 Returned 2011.02.24A320-214 Austrian Airlines CIT Leasing 1385 CFM56-5B4/P 2000-12 Leased 2011.02.24







A320-214 Genesis Lease LTU International 1441 CFM56-5B4/P 2001-02 Returned 2011.02.17A320-214 Brussels Airlines Genesis 1441 CFM56-5B4/P 2001-02 Leased 2011.02.17A320-214 CIT Leasing Air Jamaica 1747 CFM56-5B4/P 2002-02 Returned 2011.02.01A320-214 Interjet CIT Leasing 1747 CFM56-5B4/P 2002-02 Leased 2011.02.02A320-211 NBB Muse All Nippon Airways 219 CFM56-5A1 1991-06 Returned 2011.02.02A320-232 CIT Leasing China Southern 2334 V2527-A5 2004-11 Returned 2011.02.21A320-232 CIT Aerospace CIT Leasing 2334 V2527-A5 2004-11 Sold 2011.02.21A320-232 ACG Wizz Air Hungary 2688 V2527-A5 2006-02 Returned 2011.02.01A320-214 Azerbaijan Airlines Air Berlin 2865 CFM56-5B4/P 2006-07 Leased 2011.02.11A320-211 Vueling Airlines Iberia 323 CFM56-5A1 1992-04 Leased 2011.02.01A320-232 Lan Airlines Aeroasis 3264 V2527-A5 2007-09 Returned 2011.02.02A320-232 Lan Airlines Aeroasis 3330 V2527-A5 2007-11 Returned 2011.02.02A320-231 Wells Fargo Wells Fargo 376 V2500-A1 1992-10 Sold 2011.02.25A320-216 AWAS Aircraft Purchase Fleet 3846 CFM56-5B6/3 2009-03 Sold 2011.02.23A320-216 Alitalia AWAS 3846 CFM56-5B6/3 2009-03 Leased 2011.02.23A320-216 AWAS Aircraft Purchase Fleet. 3906 CFM56-5B6/3 2009-04 Sold 2011.02.24A320-216 Alitalia AWAS 3906 CFM56-5B6/3 2009-04 Leased 2011.02.24A320-214 RBS Aerospace Easyjet 4157 CFM56-5B4/3 2009-12 Returned 2011.02.08A320-214 Century Tokyo RBS Aerospace 4157 CFM56-5B4/3 2009-12 Sold 2011.02.08A320-214 Easyjet Century Tokyo Leasing 4157 CFM56-5B4/3 2009-12 Leased 2011.02.08A320-214 Easyjet Easyjet 4157 CFM56-5B4/3 2009-12 Sub-Leased 2011.02.08A320-214 China Southern Airbus 4456 CFM56-5B4/3 2011-01 Delivered 2011.02.17A320-232 Air China Airbus 4473 V2527-A5 2011-01 Delivered 2011.02.24A320-232 Tiger Airways Airbus 4561 V2527-A5 2010-12 Delivered 2011.02.25A320-214 Avianca Airbus 4567 CFM56-5B4/3 2011-01 Delivered 2011.02.10A320-214 Wells Fargo Airbus 4567 CFM56-5B4/3 2011-01 Sold 2011.02.10A320-214 Avianca Wells Fargo 4567 CFM56-5B4/3 2011-01 Leased 2011.02.10A320-216 AirAsia Airbus 4571 CFM56-5B6/3 2011-01 Delivered 2011.02.01A320-216 Indonesia AirAsia Airasia 4571 CFM56-5B6/3 2011-01 Leased 2011.02.01A320-214 Juneyao Airlines Airbus 4573 CFM56-5B4/3 2011-01 Delivered 2011.02.15A320-232 Lan Airlines Airbus 4576 V2527-A5 2011-01 Delivered 2011.02.08A320-232 Lan Airlines Bandurria Leasing. 4576 V2527-A5 2011-01 Sale-Leaseback 2011.02.08A320-232 Jetblue Airways Airbus 4578 V2527-A5 2011-01 Delivered 2011.02.10A320-232 Hainan Airlines Airbus 4580 V2527-A5 2011-01 Delivered 2011.02.18A320-232 Beijing Airlines Hainan Airlines 4580 V2527-A5 2011-01 Leased 2011.02.18A320-216 AirAsia Airbus 4582 CFM56-5B6/3 2011-01 Delivered 2011.02.09A320-216 Indonesia AirAsia Airasia 4582 CFM56-5B6/3 2011-01 Leased 2011.02.09A320-232 Air Lease Airbus 4584 V2527-A5 2011-01 Delivered 2011.02.21A320-232 Air New Zealand Air Lease Corp 4584 V2527-A5 2011-01 Leased 2011.02.21A320-214 GECAS Airbus 4586 CFM56-5B4/3 2011-01 Delivered 2011.02.14A320-214 Spring Airlines GE Capital 4586 CFM56-5B4/3 2011-01 Leased 2011.02.14A320-214 Easyjet Airbus 4588 CFM56-5B4/3 2011-01 Delivered 2011.02.09A320-214 GECAS Airbus 4589 CFM56-5B4/3 2011-01 Delivered 2011.02.17A320-214 Celestial Aviation Airbus 4589 CFM56-5B4/3 2011-01 Sold 2011.02.17A320-214 Aigle Azur Celestial 4589 CFM56-5B4/3 2011-01 Leased 2011.02.17A320-214 Easyjet Airbus 4591 CFM56-5B4/3 2011-01 Delivered 2011.02.03A320-232 CIT Leasing Airbus 4592 V2527-A5 2011-01 Delivered 2011.02.22A320-232 Wells Fargo Airbus 4592 V2527-A5 2011-01 Sold 2011.02.22A320-232 Spirit Airlines Wells Fargo 4592 V2527-A5 2011-01 Leased 2011.02.22A320-214 Niki Luftfahrt Airbus 4594 CFM56-5B4/3 2011-02 Delivered 2011.02.16A320-214 Niki Luftfahrt GECAS 4594 CFM56-5B4/3 2011-02 Sale-Leaseback 2011.02.16A320-232 BOC Aviation Airbus 4595 V2527-A5 2011-02 Delivered 2011.02.23A320-232 Wells Fargo Airbus 4595 V2527-A5 2011-02 Sold 2011.02.23A320-232 Spirit Airlines Wells Fargo 4595 V2527-A5 2011-02 Leased 2011.02.23A320-232 Lan Airlines Airbus 4597 V2527-A5 2011-02 Delivered 2011.02.11A320-232 Lan Airlines Bandurria Leasing 4597 V2527-A5 2011-02 Sale-Leaseback 2011.02.11A320-232 Indigo Airbus 4603 V2527-A5 2011-01 Delivered 2011.02.17A320-232 Indigo Orix Aviation 4603 V2527-A5 2011-01 Sale-Leaseback 2011.02.17A320-214 Air Berlin Airbus 4606 CFM56-5B4/3 2011-02 Delivered 2011.02.28A320-232 Indigo Airbus 4609 V2527-A5 2011-02 Delivered 2011.02.28A320-232 Indigo Avolon 4609 V2527-A5 2011-02 Sale-Leaseback 2011.02.28A320-232 Dubai Aerospace Airbus (-9) V2527-A5 - Cncl-Order 2011.02.01A320-214 Dubai Aerospace Airbus (-9) CFM56-5B4/3 - Cncl-Order 2011.02.01A321-211 MC Aviation Nouvelle Air Ivoire 1017 CFM56-5B3/P 1999-04 Returned 2011.02.27A321-211 ILFC Turkuaz Airlines 1905 CFM56-5B3/P 2003-01 Returned 2011.02.11A321-231 Atlasjet Intl AWAS 1950 V2533-A5 2003-03 Leased 2011.02.10A321-231 Tam Linhas Aereas Airbus 4570 V2533-A5 2011-01 Delivered 2011.02.22A321-231 Lufthansa Airbus 4585 V2533-A5 2011-01 Delivered 2011.02.08A321-211 Saudi Airlines Airbus 4590 CFM56-5B3/3 2011-01 Delivered 2011.02.14A321-231 Lufthansa Airbus 4607 V2533-A5 2011-02 Delivered 2011.02.17A321-211 Niki Luftfahrt Airbus 4611 CFM56-5B3/3 2011-02 Delivered 2011.02.24A321-211 Niki Luftfahrt GECAS 4611 CFM56-5B3/3 2011-02 Sale-Leaseback 2011.02.24A330-223 Hsh Nordbank Arik Air 1002 PW4168A 2009-05 Repossessed 2011.02.01A330-243 Aircastle Advisor Airbus 1191 TRENT772B-60 2011-01 Delivered 2011.02.07A330-243 South African Airways Aircastle Advisor 1191 TRENT772B-60 2011-01 Leased 2011.02.07A330-202 CIT Leasing Airbus 1198 CF6-80E1A4 2011-02 Delivered 2011.02.25A330-202 Qantas Airways CIT Leasing 1198 CF6-80E1A4 2011-02 Leased 2011.02.25A330-202 Jetstar Airways Airbus 1198 CF6-80E1A4 2011-02 Sub-Leased 2011.02.25A330-223(HGW) Korean Air Lines Airbus 1200 PW4170 2011-01 Delivered 2011.02.14A330-223 China Southern Airbus 1202 PW4170 2011-02 Delivered 2011.02.22A330-243 Zamrid Emirates 365 TRENT772B-60 2000-10 Returned 2011.02.01A330-243 Zamrid Emirates 372 TRENT772B-60 2000-11 Returned 2011.02.01A330-202 Novair Airlines Air Europa 814 CF6-80E1A4B 2007-02 Sub-Leased 2011.02.25A330-202 Air Europa Novair Airlines 931 CF6-80E1A4B 2008-05 Returned 2011.02.25A330-203 AirAsiaX Airbus (3) CF6-80E1A3 2012-04 Ordered 2011.02.28A330-203 AirAsiaX Airbus [2] CF6-80E1A3 2014-03 Optioned 2011.02.28A330-243 Aercap Airbus (-1) TRENT772B-60 - Cncl-Order 2011.02.01A330-343E Saudi Airlines Airbus 1192 TRENT772B-60 2011-01 Delivered 2011.02.07A330-343E Swiss International Airbus 1193 TRENT772B-60 2011-01 Delivered 2011.02.18A330-343E Edelweiss Air Swiss International 1193 TRENT772B-60 2011-01 Leased 2011.02.18







A330-343E Virgin Atlantic Airbus 1195 TRENT772B-60 2011-01 Delivered 2011.02.24A330-343E Virgin Atlantic Aercap 1195 TRENT772B-60 2011-01 Sale-Leaseback 2011.02.24A330-343E Cathay Pacifi c Airbus 1196 TRENT772B-60 2011-01 Delivered 2011.02.25A330-343 Air China Airbus 1199 TRENT772C-60 2011-02 Delivered 2011.02.21A330-343E Aercap Airbus 1201 TRENT772B-60 2011-01 Delivered 2011.02.28A330-343E Virgin Atlantic Aercap 1201 TRENT772B-60 2011-01 Leased 2011.02.28A340-313X Unknown Lessor Air France 174 CFM56-5C4 1997-05 Returned 2011.02.07A340-313X Finnair Wilmington Trust 174 CFM56-5C4 1997-05 Leased 2011.02.07A340-313X Ames-Camo Iberia 414 CFM56-5C4 2001-05 Sold 2011.02.01A350-900XWB Dubai Aerospace Airbus (-12) TRENTXWB-83 - Cncl-Order 2011.02.01A380-800 Skymark Airlines Airbus (4) 2015-03 Ordered 2011.02.17

MARCH737-229 Chilean Aeronautical Museum Lan Airlines 21596 JT8D-15 1978-08 Donated 2011.03.31737-291 San Jose Sharks Sky King 21508 JT8D-9A 1978-04 Repossessed 2011.03.05737-2Q8 Nas Air Georgian Star 21960 JT8D-15 1980-02 Sale-Leaseback 2011.03.02737-2T5 Georgian Star International Ave.Com 22395 JT8D-15 1980-12 Sold 2011.03.01737-232 Global Aircraft Solutions Pamir Airways 23077 JT8D-15A 1983-10 Returned 2011.03.19737-3T0 Continental Airlines Continental Airlines 23371 CFM56-3B1 1985-12 Sold 2011.03.29737-3T0 As & L Continental Airlines 23371 CFM56-3B1 1985-12 Sold 2011.03.29737-3T0 Unknown Global Air 23458 CFM56-3B1 1986-05 Returned 2011.03.01737-3S3 Velvet Sky Safair 24059 CFM56-3B2 1988-01 Sub-Leased 2011.03.20737-322 Midamerican Aerospace Wells Fargo 24250 CFM56-3C1 1988-11 Sold 2011.03.14737-322 Apollo Aviation Wilmington Trust 24540 CFM56-3C1 1989-08 Sold 2011.03.25737-322 Chanchangi Airlines Jordan Aviation 24662 CFM56-3C1 1990-04 Sub-Leased 2011.03.01737-3Y0 Tag Aviation Wells Fargo 24680 CFM56-3B1 1990-09 Sold 2011.03.31737-3Y0 European Aviatio Tag Aviation 24680 CFM56-3B1 1990-09 Sold 2011.03.31737-3Y0 Southern Aircraft European Aviation 24680 CFM56-3B1 1990-09 Sold 2011.03.31737-3G7(F) Aag Xiii Heavylift International 24710 CFM56-3B2 1990-01 Returned 2011.03.09737-3Q8 Viva Aerobus Celestial Aviation 24962 CFM56-3C1 1991-09 Leased 2011.03.17737-3M8 Aero North Southern Aircraft. 25040 CFM56-3B2 1991-02 Sold 2011.03.10737-3M8 Kalstar Aviation Aero North 25040 CFM56-3B2 1991-02 Leased 2011.03.10737-33A Trans Air Congo Wells Fargo 25138 CFM56-3B2 1991-10 Leased 2011.03.02737-3Q8 Hainan Airlines China West Air 26325 CFM56-3C1 1996-01 Returned 2011.03.24737-3Z0 Sf Airlines Air China 27373 CFM56-3B1 1994-09 Sold 2011.03.22737-33A Aircraft & Engine Support Air Austral 27452 CFM56-3B1 1994-11 Sold 2011.03.09737-33A Wells Fargo Aircraft & Engine Support 27452 CFM56-3B1 1994-11 Sold 2011.03.21737-36N Babcock & Brown Thomson Airways 28594 CFM56-3C1 1999-03 Returned 2011.03.28737-36N Hainan Airlines China West Air 28599 CFM56-3C1 1999-06 Returned 2011.03.24737-36Q Desert Rainier Shandong Airlines 28761 CFM56-3C1 1998-02 Returned 2011.03.31737-476 Qantas Airways Jetconnect 24439 CFM56-3C1 1992-03 Returned 2011.03.31737-4Y0 Verto Aviation East Dover 24519 CFM56-3C1 1989-08 Sold 2011.03.25737-4Y0 Transaero Airlines Verto Aviation 24519 CFM56-3C1 1989-08 Leased 2011.03.25737-405 Wood Creek Aircraft Fjord Company 24643 CFM56-3C1 1990-04 Sold 2011.03.23737-405 SAS Wood Creek Aircraft 24643 CFM56-3C1 1990-04 Leased 2011.03.23737-429 Wells Fargo Wilmington Trust 25226 CFM56-3C1 1991-07 Sold 2011.03.28737-4U3 Indonesian Air Force Garuda Indonesian 25714 CFM56-3C1 1993-09 Sold 2011.03.09737-4U3 Indonesian Air Force Garuda Indonesian 25719 CFM56-3C1 1993-10 Sold 2011.03.09737-405 CIT Aerospace SAS 25795 CFM56-3C1 1997-03 Returned 2011.03.31737-4Y0 GE Capital Pamir Airways 26088 CFM56-3C1 1993-05 Returned 2011.03.19737-430 Flyfi refl y Acs Aircraft Leasing 27001 CFM56-3C1 1992-06 Leased 2011.03.08737-430 Compass Air German Op 27007 CFM56-3C1 1992-08 Sold 2011.03.03737-430 Air Italy Compass Air 27007 CFM56-3C1 1992-08 Leased 2011.03.03737-48E ILFC Air One 27632 CFM56-3C1 1997-01 Returned 2011.03.18737-4M0 Celestial Aviation Garuda Indonesian 29206 CFM56-3C1 1998-07 Returned 2011.03.13737-4M0 Celestial Aviation Garuda Indonesian 29207 CFM56-3C1 1998-09 Returned 2011.03.13737-505 European Aviation Wells Fargo 24648 CFM56-3C1 1992-01 Sold 2011.03.24737-505 Southern Aircraft European Aviation 24648 CFM56-3C1 1992-01 Sold 2011.03.24737-53A Aircraft & Engine Air Austral 24877 CFM56-3B1 1990-10 Sold 2011.03.09737-53A Evergreen Trade Aircraft & Engine Support 24877 CFM56-3B1 1990-10 Sold 2011.03.31737-522 Apollo Aviation Air Ivoire 25001 CFM56-3C1 1990-10 Returned 2011.03.16737-522 Apollo Aviation Air Ivoire 25008 CFM56-3C1 1990-12 Returned 2011.03.24737-5Y0 Air Nippon Ana Wings 25189 CFM56-3B1 1992-02 Returned 2011.03.29737-5Y0 Nbb Creek Company Ana Wings 25189 CFM56-3B1 1992-02 Returned 2011.03.29737-524(W) Utair Aviation Blf 28905 CFM56-3C1 1997-08 Leased 2011.03.21737-54K All Nippon Airways Ana Wings 28993 CFM56-3C1 1998-09 Returned 2011.03.22737-54K Hokkaido International All Nippon Airways 28993 CFM56-3C1 1998-09 Leased 2011.03.22737-7BK CIT Leasing CIT Aerospace 30617 CFM56-7B22 2001-03 Sold 2011.03.01737-7BK(W) Aeromexico CIT Leasing 30617 CFM56-7B22 2001-03 Leased 2011.03.18737-73V BOC Aviation Easyjet 32421 CFM56-7B20 2003-07 Returned 2011.03.01737-7H4(W) Southwest Airlines Boeing 36671 CFM56-7B24 2011-03 Delivered 2011.03.31737-7BD(W) Southwest Airlines Boeing 36726 CFM56-7B24 2011-02 Delivered 2011.03.18737-76J(W) Air Berlin Boeing 36874 CFM56-7B24 2010-11 Delivered 2011.03.08737-7K2(W) CIT Leasing Boeing 38125 CFM56-7B22/3 2011-02 Delivered 2011.03.28737-7K2(W) KLM CIT Leasing 38125 CFM56-7B22/3 2011-02 Leased 2011.03.28737-7K2(W) CIT Leasing Boeing 38126 CFM56-7B22/3 2011-03 Delivered 2011.03.30737-7K2(W) KLM CIT Leasing 38126 CFM56-7B22/3 2011-03 Leased 2011.03.30737-700(W) Boeing Business Jets Boeing (-1) CFM56-7B27 - Cncl-Order 2011.03.01737-85P Aircastle Investment Air Europa 28382 CFM56-7B26 1999-03 Returned 2011.03.07737-81Q Aeromexico Wells Fargo 29052 CFM56-7B26 2000-04 Leased 2011.03.10737-883 Scandinavian Airlines System Moskovia Airlines 30468 CFM56-7B26 2000-09 Returned 2011.03.21737-81Q(WETOPS) Xl Airways Germany Miami Air International 30619 CFM56-7B26 2001-05 Sub-Leased 2011.03.22737-8BK(W) CIT Leasing CIT Aerospace . 30620 CFM56-7B26 2001-10 Sold 2011.03.07737-8BK(W) Sun Country Airlines CIT Leasing 30620 CFM56-7B26 2001-10 Leased 2011.03.07737-8Q8(W) ILFC Sunwing Airlines 30637 CFM56-7B26 2001-02 Returned 2011.03.24737-8K2(W) Transavia Airlines Transavia Denmark 30650 CFM56-7B27 2002-05 Returned 2011.03.27737-8Q8(W) Caribbean Airlines ILFC 30661 CFM56-7B26 2002-07 Leased 2011.03.11737-8Q8(W) Air Jamaica Caribbean Airlines 30661 CFM56-7B26 2002-07 Sub-Leased 2011.03.12737-8Q8(W) Aircraft 73b-30671 ILFC 30671 CFM56-7B27 2003-03 Sold 2011.03.18737-8Q8(W) Aeromexico Aircraft 73b-30671 30671 CFM56-7B27 2003-03 Leased 2011.03.22







737-86N(W) Celestial Aviation Pegasus Airlines 32732 CFM56-7B26 2002-01 Returned 2011.03.19737-8K5(W) Tabarak Aviation Travel Service Airlines 32907 CFM56-7B27B1 2002-03 Sub-Leased 2011.03.21737-8AS(W) Okay Airways Wells Fargo 33557 CFM56-7B24 2003-12 Leased 2011.03.21737-8AS(W) Airline Taimyr RBS Aerospace 33559 CFM56-7B24 2004-01 Leased 2011.03.11737-8AS(W) Okay Airways Wells Fargo 33560 CFM56-7B24 2004-01 Leased 2011.03.21737-8AS(W) RBS Aerospace Ryanair 33561 CFM56-7B24 2004-02 Returned 2011.03.11737-8AS(W) RBS Aerospace Ryanair 33562 CFM56-7B24 2004-02 Returned 2011.03.14737-8AS(W) RBS Aerospace Ryanair 33563 CFM56-7B24 2004-03 Returned 2011.03.25737-8FE(W) Igaf Vbnc 4 34167 CFM56-7B26 2005-03 Sold 2011.03.18737-8FE(W) Virgin Blue Airlines Igaf 34167 CFM56-7B26 2005-03 Leased 2011.03.18737-8FE(W) Bali Australia Leasing Pty Vbnc 4 34168 CFM56-7B26 2005-04 Sold 2011.03.18737-8FE(W) Virgin Blue Airlines Bali Australia Leasing 34168 CFM56-7B26 2005-04 Leased 2011.03.18737-8F2(W) Anadolujet Turk Hava Yollari 34409 CFM56-7B26 2006-03 Sub-Leased 2011.03.01737-8F2(W) Anadolujet Turk Hava Yollari 34410 CFM56-7B26 2006-04 Sub-Leased 2011.03.01737-8F2(W) Anadolujet Turk Hava Yollari 34412 CFM56-7B26 2006-05 Sub-Leased 2011.03.01737-8F2(W) Anadolujet Turk Hava Yollari 34413 CFM56-7B26 2006-05 Sub-Leased 2011.03.01737-8AS(W) Ryanair Boeing 34984 CFM56-7B24 2011-02 Delivered 2011.03.25737-8AS(W) Ryanair Boeing 34985 CFM56-7B24 2011-03 Delivered 2011.03.31737-8AS(W) Ryanair Boeing 34986 CFM56-7B24 2011-02 Delivered 2011.03.29737-8AS(W) Ryanair Boeing 34987 CFM56-7B24 2011-02 Delivered 2011.03.29737-8K5(W) Thomson Airways Sunwing Airlines 35134 CFM56-7B27B1 2006-12 Returned 2011.03.15737-8K5(W) Thomson Airways Sunwing Airlines 35137 CFM56-7B27B1 2007-12 Returned 2011.03.31737-8K5(W) Thomson Airways Sunwing Airlines 35138 CFM56-7B27B1 2008-01 Returned 2011.03.17737-85C(W) Xiamen Airlines Boeing 37153 CFM56-7B26 2011-02 Delivered 2011.03.08737-8K5(W) Tui Travel Boeing 37253 CFM56-7B27B1 2011-02 Delivered 2011.03.01737-8K5(W) Amentum Capital Tui Travel 37253 CFM56-7B27B1 2011-02 Sold 2011.03.01737-8K5(W) Thomson Airways Amentum Capital 37253 CFM56-7B27B1 2011-02 Leased 2011.03.01737-8K5(W) Tui Travel Boeing 37254 CFM56-7B27B1 2011-02 Delivered 2011.03.21737-8K5(W) ACG Tui Travel 37254 CFM56-7B27B1 2011-02 Sold 2011.03.21737-8K5(W) Thomson Airways ACG 37254 CFM56-7B27B1 2011-02 Leased 2011.03.21737-86J(W) RBS Aerospace Air Berlin 37743 CFM56-7B26 2009-02 Sold 2011.03.05737-86J(W) Izmir Airlines RBS Aerospace 37743 CFM56-7B26 2009-02 Leased 2011.03.05737-86J(W) RBS Aerospace Air Berlin 37745 CFM56-7B26 2009-09 Sold 2011.03.30737-86J(W) Izmir Airlines RBS Aerospace 37745 CFM56-7B26 2009-09 Leased 2011.03.30737-86N(W) Brookdell Celestial Aviation 37884 CFM56-7B26 2010-03 Sold 2011.03.11737-86N(W) Norwegian Brookdell 37884 CFM56-7B26 2010-03 Leased 2011.03.11737-86N(W) GECAS Boeing 38014 CFM56-7B26 2011-03 Delivered 2011.03.29737-86N(W) Tui Airlines Nederland GECAS 38014 CFM56-7B26 2011-03 Leased 2011.03.29737-86N(W) GECAS Boeing 38015 CFM56-7B26 2011-02 Delivered 2011.03.04737-86N(W) Xiamen Airlines GECAS 38015 CFM56-7B26 2011-02 Leased 2011.03.04737-86N(W) GECAS Boeing 38016 CFM56-7B26 2011-03 Delivered 2011.03.23737-86N(W) Shandong Airlines GECAS 38016 CFM56-7B26 2011-03 Leased 2011.03.23737-8JP(W) NAS Boeing 39005 CFM56-7B26 2011-02 Delivered 2011.03.08737-8JP(W) SMFL Aircraft Capital Boeing Company 39005 CFM56-7B26 2011-02 Sold 2011.03.08737-8JP(W) Norwegian Air SMFL Aircraft Capital 39005 CFM56-7B26 2011-02 Leased 2011.03.08737-8JP(W) Norwegian Air Boeing 39006 CFM56-7B26 2011-02 Delivered 2011.03.17737-8JP(W) Dy2 Leasing Boeing Company 39006 CFM56-7B26 2011-02 Sold 2011.03.17737-8JP(W) NAS Dy2 Leasing 39006 CFM56-7B26 2011-02 Leased 2011.03.17737-8CT(W) ACG Boeing 39092 CFM56-7B26 2011-02 Delivered 2011.03.15737-8CT(W) Westjet ACG 39092 CFM56-7B26 2011-02 Leased 2011.03.15737-8FZ(W) Babcock & Brown Boeing 39319 CFM56-7B26 2011-02 Delivered 2011.03.02737-8FZ(W) MAS Babcock & Brown 39319 CFM56-7B26 2011-02 Leased 2011.03.02737-81D(W) AWAS Boeing 39413 CFM56-7B26 2011-03 Delivered 2011.03.31737-81D(W) AWAS 39413 Boeing Company 39413 CFM56-7B26 2011-03 Sold 2011.03.31737-81D(W) Virgin Blue Airlines AWAS 39413 CFM56-7B26 2011-03 Leased 2011.03.31737-824 Continental Airlines Boeing 39998 CFM56-7B26 2010-12 Delivered 2011.03.16737-824 Continental Airlines Boeing 39999 CFM56-7B26 2011-01 Delivered 2011.03.18737-89L(W) Air China Boeing 40026 CFM56-7B26 2011-02 Delivered 2011.03.15737-8H6(W) Malaysian Airline System Boeing 40131 CFM56-7B26 2011-02 Delivered 2011.03.15737-8KN(W) Flydubai Boeing 40243 CFM56-7B26 2011-02 Delivered 2011.03.17737-8AS(W) Ryanair Boeing 40309 CFM56-7B24 2011-03 Delivered 2011.03.25737-8AS(W) Ryanair Boeing 40310 CFM56-7B24 2011-02 Delivered 2011.03.30737-8AS(W) Ryanair Boeing 40311 CFM56-7B24 2011-03 Delivered 2011.03.31737-8AS(W) Ryanair Boeing 40312 CFM56-7B24 2011-02 Delivered 2011.03.30737-8V3(W) Copa Airlines Boeing 40665 CFM56-7B26 2011-03 Delivered 2011.03.29737-8V3(W) Copa Airlines Boeing 40666 CFM56-7B26 2011-02 Delivered 2011.03.03737-82R(W) Pegasus Airlines Boeing 40724 CFM56-7B26 2011-02 Delivered 2011.03.09737-82R(W) Pegasus Airlines Boeing 40728 CFM56-7B26 2011-02 Delivered 2011.03.22737-8D6(W) Air Algerie Boeing 40861 CFM56-7B26 2011-03 Delivered 2011.03.30737-8JP(W) NAS Boeing 40867 CFM56-7B26 2011-02 Delivered 2011.03.01737-8JP(W) SMFL Aircraft Capital Boeing Company 40867 CFM56-7B26 2011-02 Sold 2011.03.01737-8JP(W) NAS SMFL Aircraft Capital 40867 CFM56-7B26 2011-02 Leased 2011.03.01737-8JP(W) NAS Boeing 40868 CFM56-7B26 2011-03 Delivered 2011.03.24737-8JP(W) Dy2 Leasing Boeing Company 40868 CFM56-7B26 2011-03 Sold 2011.03.24737-8JP(W) NAS Dy2 Leasing 40868 CFM56-7B26 2011-03 Leased 2011.03.24737-8ZQ(W) Tassili Airlines Boeing 40884 CFM56-7B26 2011-02 Delivered 2011.03.30737-8Q8(W) ILFC Boeing (33) CFM56-7B26 2012-08 Ordered 2011.03.07737-8F2(W) Turk Hava Yollari Boeing (10) CFM56-7B26 2013-08 Ordered 2011.03.31737-800(W) Unknown Boeing (1) CFM56-7B26 2012-08 Ordered 2011.03.31737-8FVERX US Navy Boeing 40595 CFM56-7B27 2010-12 Delivered 2011.03.02737-9GPER(W) Lion Air Boeing 37279 CFM56-7B27 2011-02 Delivered 2011.03.08737-924ER(W) Continental Airlines Boeing (11) CFM56-7B27 2012-01 Ordered 2011.03.02737-958ER(W) El Al Boeing (4) CFM56-7B27 2013-02 Ordered 2011.03.22737-958ER(W) El Al Boeing [2] CFM56-7B27 2014-11 Optioned 2011.03.22737-9F2ER(W) Turk Hava Yollari Boeing (5) CFM56-7B27 2014-10 Ordered 2011.03.31747-446 Aersale 25212 Aersale 25212 CF6-80C2B1F 1991-07 Sold 2011.03.24747-446 Phuket Airlines Aersale 25212 CF6-80C2B1F 1991-07 Leased 2011.03.28747-446D Wells Fargo Japan Airlines 25214 CF6-80C2B1F 1991-09 Sold 2011.03.15747-446D Wells Fargo Wells Fargo 25214 CF6-80C2B1F 1991-09 Sold 2011.03.18747-446 Aersale Japan Airlines 26346 CF6-80C2B1F 1991-12 Sold 2011.03.16







747-412 Orix Aircraft Singapore Airlines 27068 PW4056 1993-09 Returned 2011.03.10747-412 Wells Fargo Wilmington Trust 27068 PW4056 1993-09 Sold 2011.03.10747-446 Wells Fargo Japan Airlines 27645 CF6-80C2B1F 2000-11 Sold 2011.03.07757-258 El Al Sun D'or International 23918 RB211-535E4 1987-11 Returned 2011.03.21757-28A Mint Airways Aerolinea Principal 24544 RB211-535E4 1990-03 Returned 2011.03.31757-258 El Al Sun D'or International 24884 RB211-535E4 1990-10 Returned 2011.03.21757-230 Vim Airlines Air Bashkortostan 25439 PW2040 1992-02 Returned 2011.03.11757-236 Wells Fargo Air Greenland 25620 RB211-535E4 1992-03 Sold 2011.03.17757-28A(ETOPS) ILFC Air Finland 25622 RB211-535E4 1993-02 Returned 2011.03.09757-28A(ETOPS) Guggenheim Aviation ILFC 25622 RB211-535E4 1993-02 Sold 2011.03.11757-204(BWETOPS) Air Finland Allegiant Air 26963 RB211-535E4 1992-03 Sub-Leased 2011.03.14757-204 Jet2 Thomson Airways 26966 RB211-535E4 1992-12 Sub-Leased 2011.03.29757-29J(WETOPS) Wells Fargo Small Planet Airlines 27203 PW2037 1993-10 Returned 2011.03.26757-29J(WETOPS) Nordwind Airlines Wells Fargo 27203 PW2037 1993-10 Leased 2011.03.26757-2Q8(W) United States Air Force L-3 Communications 28160 PW2037 1996-06 Sold 2011.03.22757-28A(ETOPS) Thomas Cook Airlines Jazz Air 28203 RB211-535E4 1998-04 Returned 2011.03.31757-231 Pacifi c Aircorp Ethiopian Airlines 28480 PW2037 1997-03 Returned 2011.03.28757-231 Pacifi c Aircorp Pacifi c Aircorp 28480 PW2037 1997-03 Sold 2011.03.28757-21K Thomas Cook Airlines Jazz Air 28674 RB211-535E4 1997-02 Returned 2011.03.31757-23N(ETOPS) Airco Ehf Flycorp 30735 RB211-535E4-B 2000-05 Sold 2011.03.01757-23N(ETOPS) Icelandair Airco Ehf 30735 RB211-535E4-B 2000-05 Leased 2011.03.02767-246 Au7 Japan Airlines 23212 JT9D-7R4D 1985-04 Sold 2011.03.09767-246 Dynamic Jetlease Au7 23212 JT9D-7R4D 1985-04 Sold 2011.03.09767-2J6ER Air Transport International Cargo Aircraft Mgmt 23307 JT9D-7R4E4 1985-08 Leased 2011.03.01767-2EYER(TT) Italian Air Force Boeing Company 33687 CF6-80C2B6FA 2005-01 Sold 2011.03.11767-346 Japan Airlines Zonet Aviation 23963 JT9D-7R4D 1988-05 Lease-Buyout 2011.03.31767-346 Japan Airlines Zonet 23964 JT9D-7R4D 1988-05 Lease-Buyout 2011.03.31767-33AER Aerosvit Airlines Royal Brunei Airlines 25532 PW4056 1992-06 Leased 2011.03.01767-33AER Aerosvit Airlines Royal Brunei Airlines 25534 PW4060 1993-01 Leased 2011.03.12767-33AER AWMS I Gol Transportes Aereos 27477 PW4060 1999-12 Returned 2011.03.25767-316ER(W) Lan Argentina Lan Airlines 34628 CF6-80C2B7F 2006-06 Leased 2011.03.01767-381ER(W) All Nippon Airways Ft Ice Leasing 40566 CF6-80C2B6F 2010-12 Sale-Leaseback 2011.03.31767-381ER(W) All Nippon Airways Tlc Property 40567 CF6-80C2B6F 2011-01 Sale-Leaseback 2011.03.31767-381ER All Nippon Airways Boeing 40894 CF6-80C2B6F 2011-02 Delivered 2011.03.29777-222ER T7 Aviation Leasing US Bank 26935 PW4090 1997-07 Sold 2011.03.23777-222ER Omni Air International T7 Aviation Leasing 26935 PW4090 1997-07 Leased 2011.03.23777-223ER American Airlines Wells Fargo 31477 TRENT892-17 2001-11 Sale-Leaseback 2011.03.29777-223ER American Airlines Wells Fargo 31478 TRENT892-17 2002-02 Sale-Leaseback 2011.03.14777-333ER ALC GE Capital 35254 GE90-115B1 2007-03 Sold 2011.03.01777-333ER Air Canada ALC 35254 GE90-115B1 2007-03 Leased 2011.03.02777-328ER Air France ALC 35542 GE90-115B 2008-05 Sale-Leaseback 2011.03.30777-3DZER Qatar Airways Boeing 38245 GE90-115B 2011-02 Delivered 2011.03.17777-319ER Air New Zealand Boeing 38407 GE90-115B 2011-02 Delivered 2011.03.22777-319ER Babcock & Brown Boeing Company 38407 GE90-115B 2011-02 Sold 2011.03.22777-319ER Air New Zealand Babcock & Brown 38407 GE90-115B 2011-02 Leased 2011.03.22777-367ER Cathay Pacifi c Airways Boeing 39232 GE90-115BL2 2011-02 Delivered 2011.03.29777-3F2ER Turk Hava Yollari Boeing 40794 GE90-115B 2011-02 Delivered 2011.03.22777-323ER American Airlines Boeing (1) GE90-115B 2013-02 Ordered 2011.03.31777-367ER Cathay Pacifi c Airways Boeing (10) GE90-115BL2 2014-02 Ordered 2011.03.09777-36NER GECAS Boeing (8) GE90-115B 2012-12 Ordered 2011.03.30777-3B5ER Korean Air Lines Boeing (2) GE90-115B 2014-06 Ordered 2011.03.25777-3DZER Qatar Airways Boeing (4) GE90-115B 2012-07 Ordered 2011.03.17A300B4-622R Wells Fargo Japan Airlines International 730 PW4158 1994-02 Sold 2011.03.10A300B4-622R Japan Airlines Nl Saturn Lease 797 PW4158 1999-11 Lease-Buyout 2011.03.28A300B4-622R Japan Airlines Signet Lease 836 PW4158 2002-05 Lease-Buyout 2011.03.10A300B4-622R Maximus Air Cargo Japan Airlines 837 PW4158 2002-07 Sold 2011.03.02A310-304 Saga Airlines Ariana Afghan Airlines 562 CF6-80C2A2 1990-11 Returned 2011.03.01A318-111 Avianca Wells Fargo 2358 CFM56-5B8/P 2004-11 Leased 2011.03.08A318-111 Avianca Wells Fargo 2367 CFM56-5B8/P 2004-12 Leased 2011.03.18A319-112 Avianca Wells Fargo 2662 CFM56-5B6/P 2006-01 Leased 2011.03.04A319-112 Germania Niki Luftfahrt 3019 CFM56-5B6/P 2007-02 Sold 2011.03.31A319-112 Karthago Airlines Koralblue Airlines 3171 CFM56-5B6/P 2007-06 Returned 2011.03.03A319-112 Hamburg Airways Amentum Capital 3533 CFM56-5B6/3 2008-05 Leased 2011.03.22A319-112 Hamburg Airways Unknown Lessor 3560 CFM56-5B6/3 2008-06 Leased 2011.03.25A319-112 Germania Unknown Lessor 3818 CFM56-5B6/3 2009-02 Leased 2011.03.03A319-111 Easyjet Airbus 4624 CFM56-5B5/3 2011-02 Delivered 2011.03.09A319-111 Easyjet Unknown Lessor 4624 CFM56-5B5/3 2011-02 Sale-Leaseback 2011.03.09A319-132 Turk Hava Yollari Airbus 4629 V2524-A5 2011-02 Delivered 2011.03.11A319-111 Easyjet Airbus 4635 CFM56-5B5/3 2011-03 Delivered 2011.03.16A319-111 Easyjet Unknown Lessor 4635 CFM56-5B5/3 2011-03 Sale-Leaseback 2011.03.16A319-111 Easyjet Airbus 4640 CFM56-5B5/3 2011-03 Delivered 2011.03.15ACJ319-115 Genting Singapore French Air Force 1485 CFM56-5B7/P 2001-05 Sold 2011.03.01ACJ319-115 Tag Aviation Asia Genting Singapore 1485 CFM56-5B7/P 2001-05 Leased 2011.03.02ACJ319-115 Senegal Air Force French Air Force 1556 CFM56-5B7/P 2001-08 Sold 2011.03.01A319-115LR S7 Airlines ILFC 2279 CFM56-5B7/P 2004-08 Leased 2011.03.03ACJ319-115 Comlux Aviation Airbus 4622 CFM56-5B7/3 2011-03 Delivered 2011.03.11ACJ319-115 Comlux Malta Comlux Aviation 4622 CFM56-5B7/3 2011-03 Leased 2011.03.11ACJ319-100 Unknown Airbus (1) 2015-07 Ordered 2011.03.01A320-214 AFS Investments Philippine Airlines 1210 CFM56-5B4/P 2000-03 Returned 2011.03.08A320-214 Celestial Aviation AFS Investments 1210 CFM56-5B4/P 2000-03 Sold 2011.03.08A320-214 Hello Celestial Aviation 1210 CFM56-5B4/P 2000-03 Leased 2011.03.08A320-214 AFS Investments Xvii Air Jamaica 1751 CFM56-5B4/P 2002-03 Returned 2011.03.10A320-231 Sky Airline Wells Fargo 179 V2500-A1 1991-08 Leased 2011.03.07A320-214 Interjet [Mexico] ILFC 2048 CFM56-5B4/P 2003-06 Leased 2011.03.02A320-211 Nouvelair Tunisie Libyan Airlines 222 CFM56-5A1 1991-06 Returned 2011.03.01A320-232 Cyprus Airways CIT Aerospace 2334 V2527-A5 2004-11 Leased 2011.03.11A320-232 CIT Aerospace China Southern 2343 V2527-A5 2004-12 Returned 2011.03.09A320-232 Cyprus Airways CIT Aerospace 2343 V2527-A5 2004-12 Leased 2011.03.30A320-232 CIT Aerospace China Southern 2345 V2527-A5 2004-12 Returned 2011.03.24A320-212 Donbassaero Aercap 235 CFM56-5A3 1991-08 Leased 2011.03.01







A320-232 Onur Air ACG 2688 V2527-A5 2006-02 Leased 2011.03.22A320-231 Myanmar Airways Cyprus Airways 295 V2500-A1 1992-01 Sold 2011.03.02A320-212 Eastok Avia Wells Fargo 325 CFM56-5A3 1992-04 Sold 2011.03.31A320-212 East Air [Tajikistan] Eastok Avia 325 CFM56-5A3 1992-04 Leased 2011.03.31A320-232 Anadolujet Wells Fargo 3259 V2527-A5 2007-09 Leased 2011.03.15A320-231 Wells Fargo Aerco 354 V2500-A1 1992-07 Sold 2011.03.21A320-231 Wells Fargo Wells Fargo 354 V2500-A1 1992-07 Sold 2011.03.30A320-231 Wells Fargo Wells Fargo 354 V2500-A1 1992-07 Sold 2011.03.30A320-232 Wizz Air Hungary Wizz Air Bulgaria 3562 V2527-A5 2008-07 Returned 2011.03.01A320-231 Khors Aircompany Wells Fargo 362 V2500-A1 1992-09 Leased 2011.03.18A320-231 Sasof Tr-37 Wells Fargo 369 V2500-A1 1992-09 Sold 2011.03.14A320-231 Jetran Aft Trust-Sub 1 373 V2500-A1 1992-10 Sold 2011.03.25A320-214 ALAFCO Wataniya Airways 3739 CFM56-5B4/3 2008-12 Returned 2011.03.16A320-212 Aviation Capital Partners Sparhorn 375 CFM56-5A3 1992-10 Sold 2011.03.28A320-212 Avion Express [Lithuania] Aviation Capital Partners 375 CFM56-5A3 1992-10 Leased 2011.03.28A320-214 ALAFCO Wataniya Airways 3791 CFM56-5B4/3 2009-02 Returned 2011.03.16A320-216 Orix Aircraft Aircraft Purchase Fleet 3831 CFM56-5B6/3 2009-03 Sold 2011.03.09A320-216 Alitalia Orix Aircraft 3831 CFM56-5B6/3 2009-03 Leased 2011.03.09A320-211 Travel Service Airlines Smartlynx Airlines 384 CFM56-5A1 1992-11 Sub-Leased 2011.03.12A320-216 Orix Aircraft Aircraft Purchase Fleet 3885 CFM56-5B6/3 2009-04 Sold 2011.03.09A320-216 Alitalia Orix Aircraft 3885 CFM56-5B6/3 2009-04 Leased 2011.03.09A320-214 ILFC Wataniya Airways 3907 CFM56-5B4/3 2009-05 Returned 2011.03.16A320-214 ALAFCO. Wataniya Airways 4049 CFM56-5B4/3 2009-09 Returned 2011.03.16A320-231 Sky Wings Airlines Iai Viii 405 V2500-A1 1993-01 Sold 2011.03.01A320-232 Aegean Airlines Olympic Air 4094 V2527-A5 2009-11 Sub-Leased 2011.03.01A320-214 Easyjet Switzerland Easyjet 4196 CFM56-5B4/3 2010-02 Sub-Leased 2011.03.11A320-214 Aerventure Wataniya Airways 4235 CFM56-5B4/3 2010-02 Returned 2011.03.16A320-214 Aerventure Wataniya Airways 4304 CFM56-5B4/3 2010-05 Returned 2011.03.16A320-214 Aerventure Wataniya Airways 4411 CFM56-5B4/3 2010-08 Returned 2011.03.16A320-232 Hainan Airlines Airbus 4482 V2527-A5 2011-01 Delivered 2011.03.02A320-232 China West Air Hainan Airlines 4482 V2527-A5 2011-01 Leased 2011.03.02A320-214 Spring Airlines Airbus 4499 CFM56-5B4/3 2011-02 Delivered 2011.03.09A320-214 Gulf Air Pembroke Capital 4502 CFM56-5B4/3 2010-11 Sale-Leaseback 2011.03.02A320-214 China Southern Airbus 4507 CFM56-5B4/3 2011-03 Delivered 2011.03.15A320-214 Gulf Air Pembroke Capital 4541 CFM56-5B4/3 2010-12 Sale-Leaseback 2011.03.02A320-214 Avianca Airbus 4599 CFM56-5B4/3 2011-02 Delivered 2011.03.01A320-214 Wells Fargo Airbus 4599 CFM56-5B4/3 2011-02 Sold 2011.03.01A320-214 Avianca Wells Fargo 4599 CFM56-5B4/3 2011-02 Leased 2011.03.01A320-214 Air France Airbus 4601 CFM56-5B4/3 2011-02 Delivered 2011.03.09A320-214 Air France ALC 4601 CFM56-5B4/3 2011-02 Sale-Leaseback 2011.03.09A320-214 Air France Airbus 4604 CFM56-5B4/3 2011-02 Delivered 2011.03.09A320-214 Air France Safe N03 Pty 4604 CFM56-5B4/3 2011-02 Sale-Leaseback 2011.03.09A320-214 ACG Airbus 4610 CFM56-5B4/3 2011-02 Delivered 2011.03.08A320-214 Bank Of Utah Airbus 4610 CFM56-5B4/3 2011-02 Sold 2011.03.08A320-214 Virgin America Bank Of Utah 4610 CFM56-5B4/3 2011-02 Leased 2011.03.08A320-232 Jetblue Airways Airbus 4612 V2527-A5 2011-02 Delivered 2011.03.07A320-214 Air Berlin Airbus 4613 CFM56-5B4/3 2011-02 Delivered 2011.03.01A320-214 Icbc Financial Leasing Air Berlin 4613 CFM56-5B4/3 2011-02 Sold 2011.03.02A320-214 China Southern ICBC 4613 CFM56-5B4/3 2011-02 Leased 2011.03.02A320-232 Indigo Airbus 4614 V2527-A5 2011-02 Delivered 2011.03.03A320-232 Indigo MCAP Europe 4614 V2527-A5 2011-02 Sale-Leaseback 2011.03.03A320-232 Qatar Airways Airbus 4615 V2527-A5 2011-03 Delivered 2011.03.10A320-214 ACG Airbus 4616 CFM56-5B4/3 2011-02 Delivered 2011.03.17A320-214 Bank Of Utah Airbus 4616 CFM56-5B4/3 2011-02 Sold 2011.03.17A320-214 Virgin America Bank Of Utah 4616 CFM56-5B4/3 2011-02 Leased 2011.03.17A320-214 Swiss International Air Lines Airbus 4618 CFM56-5B4/3 2011-02 Delivered 2011.03.18A320-232 ILFC Airbus 4619 V2527-A5 2011-02 Delivered 2011.03.15A320-232 Sichuan Airlines ILFC 4619 V2527-A5 2011-02 Leased 2011.03.15A320-232 Wizz Air Hungary Airbus 4621 V2527-A5 2011-02 Delivered 2011.03.16A320-232 Wizz Air Hungary HKAC 4621 V2527-A5 2011-02 Sale-Leaseback 2011.03.16A320-232 Wizz Air Hungary Airbus 4628 V2527-A5 2011-02 Delivered 2011.03.17A320-232 Wizz Air Hungary HKAC 4628 V2527-A5 2011-02 Sale-Leaseback 2011.03.17A320-232 Indigo Airbus 4630 V2527-A5 2011-03 Delivered 2011.03.30A320-232 Indigo Hkac Leasing 4630 V2527-A5 2011-03 Sale-Leaseback 2011.03.30A320-214 Air Berlin Airbus 4631 CFM56-5B4/3 2011-03 Delivered 2011.03.14A320-214 Air Berlin Celestial Aviation 4631 CFM56-5B4/3 2011-03 Sale-Leaseback 2011.03.14A320-214 Belair Airlines Airbus 4631 CFM56-5B4/3 2011-03 Sub-Leased 2011.03.14A320-232 Middle East Airlines Airbus 4632 V2527-A5 2011-03 Delivered 2011.03.31A320-232 Shenzhen Airlines Airbus 4633 V2527-A5 2011-03 Delivered 2011.03.31A320-214 Aer Lingus Airbus 4634 CFM56-5B4/3 2011-02 Delivered 2011.03.24A320-214 Easyjet Airbus 4636 CFM56-5B4/3 2011-03 Delivered 2011.03.09A320-232 Indigo Airbus 4637 V2527-A5 2011-03 Delivered 2011.03.22A320-232 Indigo Orix Aviation 4637 V2527-A5 2011-03 Sale-Leaseback 2011.03.22A320-214 AWAS Airbus 4641 CFM56-5B4/3 2011-03 Delivered 2011.03.17A320-214 AWAS 4641 Trust Airbus 4641 CFM56-5B4/3 2011-03 Sold 2011.03.17A320-214 Frontier Airlines AWAS 4641 CFM56-5B4/3 2011-03 Leased 2011.03.17A320-232 Aerdragon Aviation Airbus 4642 V2527-A5 2011-03 Delivered 2011.03.25A320-232 Sichuan Airlines Aerdragon Aviation 4642 V2527-A5 2011-03 Leased 2011.03.25A320-214 Easyjet Airbus 4646 CFM56-5B4/3 2011-03 Delivered 2011.03.30A320-232 Lan Airlines Airbus 4657 V2527-A5 2011-03 Delivered 2011.03.31A320-232 Lan Airlines Bandurria Leasing. 4657 V2527-A5 2011-03 Sale-Leaseback 2011.03.31A320-232 Onur Air Castle 496 V2527-A5 1994-09 Leased 2011.03.24A320-214 Acg Trust 707 Air China 707 CFM56-5B4/P 1997-06 Returned 2011.03.31A320-214 Jazeera Airways Airbus (-25) CFM56-5B4/3 - Cncl-Order 2011.03.01A321-231 CIT Aerospace Sky Airlines 1670 V2533-A5 2002-01 Returned 2011.03.23A321-231 Asiana Airlines CIT Aerospace 1670 V2533-A5 2002-01 Leased 2011.03.25A321-211 Royal Air Maroc Atlas Blue 2064 CFM56-5B3/P 2003-10 Returned 2011.03.01A321-211 Royal Air Maroc Atlas Blue 2076 CFM56-5B3/P 2003-10 Returned 2011.03.01A321-232 Air China Airbus 4617 V2530-A5 2011-02 Delivered 2011.03.08A321-231 Lufthansa Airbus 4626 V2533-A5 2011-02 Delivered 2011.03.29







A321-231 China Eastern Airbus 4638 V2533-A5 2011-03 Delivered 2011.03.23A321-231 Turk Hava Yollari Airbus 4643 V2533-A5 2011-03 Delivered 2011.03.28A321-211 Niki Luftfahrt Airbus 4648 CFM56-5B3/3 2011-03 Delivered 2011.03.30A321-231 Turk Hava Yollari Airbus 4654 V2533-A5 2011-03 Delivered 2011.03.29A321-211 ILFC Turkuaz Airlines 666 CFM56-5B3/P 1997-03 Returned 2011.03.25A321-211 ILFC Turkuaz Airlines 775 CFM56-5B3/P 1998-01 Returned 2011.03.24A321-211 ILFC Aer Lingus 815 CFM56-5B3/P 1998-04 Returned 2011.03.21A321-211 Ural Airlines ILFC 815 CFM56-5B3/P 1998-04 Leased 2011.03.21A321-231 Onur Air Wells Fargo 835 V2533-A5 1998-05 Leased 2011.03.22A321-231 Turk Hava Yollari Airbus (10) V2533-A5 2013-01 Ordered 2011.03.08A330-223(HGW) Korean Air Lines Airbus 1203 PW4170 2011-02 Delivered 2011.03.07A330-243 Avianca Airbus 1208 TRENT772B-60 2011-02 Delivered 2011.03.24A330-243 Wells Fargo Airbus 1208 TRENT772B-60 2011-02 Sold 2011.03.24A330-243 Avianca Wells Fargo 1208 TRENT772B-60 2011-02 Leased 2011.03.24A330-243 Aircastle Advisor Airbus 1210 TRENT772B-60 2011-03 Delivered 2011.03.22A330-243 South African Airways Aircastle Advisor 1210 TRENT772B-60 2011-03 Leased 2011.03.22A330-243 Echo Leasing One Zamrid 365 TRENT772B-60 2000-10 Sold 2011.03.04A330-243 Virgin Blue Echo Leasing One 365 TRENT772B-60 2000-10 Leased 2011.03.04A330-243 Vb A330 Leasing Echo Leasing One 365 TRENT772B-60 2000-10 Sold 2011.03.25A330-243 Virgin Blue Vb A330 Leasing 365 TRENT772B-60 2000-10 Leased 2011.03.25A330-243 British Midland Turk Hava Yollari 398 TRENT772B-60 2001-04 Returned 2011.03.31A330-343E Iberworld Airlines Aerolinea Principal 1097 TRENT772B-60 2010-02 Returned 2011.03.07A330-343E Turk Hava Yollari Airbus 1204 TRENT772B-60 2011-01 Delivered 2011.03.30A330-343E Virgin Atlantic Airbus 1206 TRENT772B-60 2011-02 Delivered 2011.03.15A330-343E Virgin Atlantic Aercap. 1206 TRENT772B-60 2011-02 Sale-Leaseback 2011.03.15A330-343E China Airlines Airbus 1206 TRENT772B-60 2011-02 Sub-Leased 2011.03.15A330-323E Aercap Aviation Airbus 1211 PW4168A-1D 2011-03 Delivered 2011.03.23A330-323E Aercap Airbus 1211 PW4168A-1D 2011-03 Sold 2011.03.23A330-323E Asiana Airlines Aercap 1211 PW4168A-1D 2011-03 Leased 2011.03.23A330-343E Turk Hava Yollari Airbus 1212 TRENT772B-60 2011-03 Delivered 2011.03.24A330-342 ILFC Dragonair 132 TRENT772-60 1996-03 Returned 2011.03.04A330-342 Air Transat ILFC 132 TRENT772-60 1996-03 Leased 2011.03.04A330-342E Cathay Pacifi c Airways Airbus (15) TRENT772-60 2014-02 Ordered 2011.03.15A380-841 Lufthansa Airbus 061 TRENT970-84 2010-08 Delivered 2011.03.15A380-841 Lufthansa Airbus 066 TRENT970-84 2010-10 Delivered 2011.03.31

APRIL707-338C Omega Air RAAF 19629 Jt3d-3b 1968-07 Sold 2011.04.07717-23S Aerolineas De Baleares Spanair 55067 Br715a1-30 2001-03 Returned 2011.04.19717-23S Pembroke Capital Spanair 55067 Br715a1-30 2001-03 Returned 2011.04.19717-23S Blue1 Pembroke Capital 55067 Br715a1-30 2001-03 Leased 2011.04.19727-224 Bolivian Air Force Aerolineas Sudamericanas 22449 Jt8d-17r 1981-05 Sold 2011.04.01737-244 Aergo Capital Aerolineas Galapagos 22581 Jt8d-17a 1981-08 Returned 2011.04.26737-244 Rutaca Aergo Capital 22581 Jt8d-17a 1981-08 Leased 2011.04.26737-2H4 Ishtar Airlines Iraqi Airways 23054 Jt8d-9a 1983-05 Returned 2011.04.18737-2H4 Ajeton Ishtar Airlines 23054 Jt8d-9a 1983-05 Sold 2011.04.18737-3T0(W) Grandmax Group As & L 23374 Cfm56-3b1 1986-02 Sold 2011.04.28737-3T0(W) Orient Thai Airlines Grandmax Group 23374 Cfm56-3b1 1986-02 Leased 2011.04.28737-33A AWAS Air Italy 23636 Cfm56-3b2 1987-08 Returned 2011.04.12737-33A AWMS I AWAS 23636 Cfm56-3b2 1987-08 Sold 2011.04.12737-3G7 Boullioun Aircraft Us Airways 23777 Cfm56-3b1 1987-06 Returned 2011.04.26737-375 Pindell Blue Panorama 23808 Cfm56-3b2 1987-07 Returned 2011.04.05737-3K2 Castle Norwegian 24328 Cfm56-3b2 1990-04 Returned 2011.04.22737-3K2 Belavia Castle 24328 Cfm56-3b2 1990-04 Leased 2011.04.29737-3Y5 Bcc Equipment Norwegian 25613 Cfm56-3c1 1993-02 Returned 2011.04.28737-3Y5 Eastok Avia Bcc Equipment 25613 Cfm56-3c1 1993-02 Leased 2011.04.28737-3Y5 Somon Air Norwegian 25613 Cfm56-3c1 1993-02 Sub-Leased 2011.04.28737-3Q8 Boliviana De Aviacion Triton Aviation 26303 Cfm56-3b2 1994-06 Leased 2011.04.28737-33A Vista Georgia Aerovista Gulf Express 27452 Cfm56-3c1 1994-11 Leased 2011.04.29737-36N Bmibaby Babcock & Brown 28594 Cfm56-3c1 1999-03 Leased 2011.04.14737-36Q Boullioun Shandong Airlines 28664 Cfm56-3c1 1997-08 Returned 2011.04.25737-3S3 Salg-7 B.V. NAS 29245 Cfm56-3c1 1998-07 Returned 2011.04.06737-4S3 Kv Aviation Holdings Orix Aircraft 24163 Cfm56-3c1 1989-03 Sold 2011.04.01737-4S3 Comair KV Aviation 24163 Cfm56-3c1 1989-03 Leased 2011.04.02737-4S3 Kv Aviation Holdings Orix Aircraft 24164 Cfm56-3c1 1989-03 Sold 2011.04.01737-4S3 Comair KV Aviation 24164 Cfm56-3c1 1989-03 Leased 2011.04.02737-4S3 Kv Aviation Holdings Orix Aircraft 24167 Cfm56-3c1 1989-05 Sold 2011.04.01737-4S3 Comair KV Aviation 24167 Cfm56-3c1 1989-05 Leased 2011.04.02737-4Y0 Nat Nuclear Sec Admin Aersale 24493 Cfm56-3c1 1989-06 Sold 2011.04.21737-4Q8 ILFC Corendon Airlines 25374 Cfm56-3c1 1993-11 Returned 2011.04.28737-4Q8 Enter Air ILFC 25374 Cfm56-3c1 1993-11 Leased 2011.04.29737-4Q8 ILFC Corendon Airlines 25375 Cfm56-3c1 1994-03 Returned 2011.04.09737-48E Yamal Airlines Wells Fargo 25775 Cfm56-3c1 1997-08 Leased 2011.04.05737-405 Enter Air CIT Aerospace 25795 Cfm56-3c1 1997-03 Leased 2011.04.01737-4B6 Celestial Aviation Buraq Air Transport 26531 Cfm56-3c1 1993-03 Returned 2011.04.18737-430 ACS Air Italy 27003 Cfm56-3c1 1992-06 Returned 2011.04.01737-446 Zonet Aviation Marubeni Aerospace 28087 Cfm56-3c1 1996-08 Transferred 2011.04.01737-446 JAL Express JAL Express 28087 Cfm56-3c1 1996-08 Sub-Leased 2011.04.01737-446 Zonet Aviation Japan Airlines 28097 Cfm56-3c1 1997-06 Transferred 2011.04.01737-446 JAL Express JAL Express 28097 Cfm56-3c1 1997-06 Sub-Leased 2011.04.01737-446 Zonet Aviation Japan Airlines 28831 Cfm56-3c1 1997-07 Transferred 2011.04.01737-446 JAL Express JAL Express 28831 Cfm56-3c1 1997-07 Sub-Leased 2011.04.01737-446 Zonet Aviation Japan Airlines 28832 Cfm56-3c1 1997-10 Transferred 2011.04.01737-446 JAL Express JAL Express 28832 Cfm56-3c1 1997-10 Sub-Leased 2011.04.01737-446 Japan Airlines Japan Airlines 28994 Cfm56-3c1 1998-05 Transferred 2011.04.01737-446 JAL Express Japan Airlines 28994 Cfm56-3c1 1998-05 Leased 2011.04.01737-4M0 Celestial Aviation Garuda Indonesian 29208 Cfm56-3c1 1998-10 Returned 2011.04.01737-4Q3 Japan Airlines Japan Airlines 29485 Cfm56-3c1 1998-10 Transferred 2011.04.01737-4Q3 Japan Transocean Air Japan Airlines 29485 Cfm56-3c1 1998-10 Leased 2011.04.01737-59D British Midland Bmibaby 26421 Cfm56-3b1 1992-04 Returned 2011.04.15







737-59D Tag Aviation (Stansted) British Midland 26421 Cfm56-3b1 1992-04 Sold 2011.04.18737-529 Aero North International Riau Airlines 26537 Cfm56-3b1 1992-05 Returned 2011.04.07737-524(W) Utair Aviation BLF 28912 Cfm56-3c1 1997-12 Leased 2011.04.22737-7Q8 ILFC Jet Lite 30727 Cfm56-7b22 2001-10 Returned 2011.04.30737-7Q8 Wilmington Trust ILFC 30727 Cfm56-7b22 2001-10 Sold 2011.04.30737-7Q8 Jet Time Wilmington Trust 30727 Cfm56-7b22 2001-10 Leased 2011.04.30737-73V Sa Victoria BOC Aviation 32421 Cfm56-7b20 2003-07 Sold 2011.04.27737-73V(W) Air Italy Sa Victoria 32421 Cfm56-7b20 2003-07 Leased 2011.04.28737-73V Enerjet BOC Aviation 32427 Cfm56-7b20 2004-03 Leased 2011.04.28737-73V BOC Aviation Easyjet 32428 Cfm56-7b20 2004-04 Returned 2011.04.04737-73V Wells Fargo BOC Aviation 32428 Cfm56-7b20 2004-04 Sold 2011.04.27737-7BD(W) Southwest Airlines Boeing 33936 Cfm56-7b24 2011-03 Delivered 2011.04.14737-7GL(W) Anadolujet Turk Hava Yollari 34759 Cfm56-7b24 2007-06 Sub-Leased 2011.04.01737-7H4(W) Southwest Airlines Boeing 36672 Cfm56-7b24 2011-04 Delivered 2011.04.28737-7CT(W) BOC Aviation Boeing 37955 Cfm56-7b20 2011-03 Delivered 2011.04.18737-7CT(W) Westjet BOC Aviation 37955 Cfm56-7b20 2011-03 Leased 2011.04.18737-7K2(W) KLM Boeing 39255 Cfm56-7b22/3 2011-02 Delivered 2011.04.26737-8K5(W) Tui Aviation Tuifl y 27982 Cfm56-7b26 1997-06 Returned 2011.04.11737-8K5(W) Nakayama Kosan Tui Aviation GMBH 27982 Cfm56-7b26 1997-06 Sold 2011.04.20737-8K5(W) Jet2 Nakayama Kosan 27982 Cfm56-7b26 1997-06 Leased 2011.04.20737-86J(W) Bank Of Utah ACG Acquisition 28068 Cfm56-7b26 1998-02 Transferred 2011.04.28737-86J(W) Saga Airlines Bank Of Utah 28068 Cfm56-7b26 1998-02 Leased 2011.04.28737-8Q8(W) Xl Airways Canjet Airlines 28218 Cfm56-7b26 1998-11 Returned 2011.04.27737-8K2(W) Transavia Airlines Aeromexico 28376 Cfm56-7b27 1999-03 Returned 2011.04.05737-8K2(W) Transavia France Transavia Airlines 28376 Cfm56-7b27 1999-03 Sub-Leased 2011.04.08737-8K2(W) Transavia Airlines Aeromexico 28377 Cfm56-7b27 1999-04 Returned 2011.04.12737-8K2(W) Transavia Airlines Aeromexico 28378 Cfm56-7b27 1999-05 Returned 2011.04.19737-8K2(W) Transavia Airlines Sun Country Airlines 28380 Cfm56-7b27 2000-03 Returned 2011.04.27737-85P Lombard Aviation Air Europa 28381 Cfm56-7b26 1999-03 Returned 2011.04.15737-86N(W) Pegasus Airlines RAK Airways 28624 Cfm56-7b26 2000-05 Returned 2011.04.01737-8S3 Sunrock Aircraft Saga Airlines 29246 Cfm56-7b26 2000-01 Returned 2011.04.13737-8S3(W) Corendon Airlines Sunrock Aircraft 29246 Cfm56-7b26 2000-01 Leased 2011.04.13737-8S3 Sunrock Aircraft Saga Airlines 29247 Cfm56-7b26 2000-01 Returned 2011.04.23737-8S3(W) Corendon Airlines Sunrock Aircraft 29247 Cfm56-7b26 2000-01 Leased 2011.04.23737-8BK(W) Jetairfl y Sun Country Airlines 29660 Cfm56-7b26 2007-07 Returned 2011.04.07737-8F2(W) Turk Hava Yollari Anadolujet 29785 Cfm56-7b26 2000-04 Returned 2011.04.01737-8AS(W) Spicejet CIT Aerospace 29926 Cfm56-7b24 2000-11 Leased 2011.04.13737-85F(W) Macquarie Aircraft South African Airways 30007 Cfm56-7b26 2000-12 Returned 2011.04.01737-8K2(W) Transavia Airlines Sun Country Airlines 30389 Cfm56-7b27 2000-04 Returned 2011.04.20737-883 La Darien Navegacion El Barrio Shipping 30468 Cfm56-7b26 2000-09 Sold 2011.04.18737-883 SAS La Darien Navegacion 30468 Cfm56-7b26 2000-09 Leased 2011.04.18737-8BK(W) CIT Aerospace Virgin Blue Airlines 30623 Cfm56-7b26 2002-04 Returned 2011.04.20737-8BK(W) CIT Leasing CIT Aerospace 30623 Cfm56-7b26 2002-04 Sold 2011.04.20737-8BK(W) Sun Country Airlines CIT Leasing 30623 Cfm56-7b26 2002-04 Leased 2011.04.20737-8Q8(W) Caribbean Airlines East Trust-Sub 1 30720 Cfm56-7b26 2007-03 Leased 2011.04.05737-8Q8(W) Air Jamaica Caribbean Airlines 30720 Cfm56-7b26 2007-03 Sub-Leased 2011.04.07737-8Q8(W) Xl Airways Germany Canjet Airlines 30724 Cfm56-7b26 2007-05 Returned 2011.04.26737-86N(W) Tuifl y Nordic Celestial Aviation 32669 Cfm56-7b26 2006-02 Leased 2011.04.13737-86N(W) Comair Celestial Aviation 32732 Cfm56-7b26 2002-01 Leased 2011.04.12737-8Q8(W) Aircraft 73b-32796 ILFC 32796 Cfm56-7b27 2003-01 Sold 2011.04.01737-8Q8(W) Aeromexico Aircraft 73b-32796 32796 Cfm56-7b27 2003-01 Leased 2011.04.08737-86J(W) ALC B378 32919 Air Berlin 32919 Cfm56-7b26 2003-01 Returned 2011.04.30737-8AS(W) Airline Taimyr Wells Fargo 33561 Cfm56-7b24 2004-02 Leased 2011.04.22737-881(W) All Nippon Airways Boeing 33909 Cfm56-7b26 2011-03 Delivered 2011.04.07737-8K2(W) Transavia Airlines Caribbean Airlines 34171 Cfm56-7b27 2009-06 Returned 2011.04.12737-838(W) Qantas Airways Boeing 34194 Cfm56-7b24 2011-03 Delivered 2011.04.22737-8F2(W) Anadolujet Turk Hava Yollari 34408 Cfm56-7b26 2006-02 Sub-Leased 2011.04.01737-8F2(W) Anadolujet Turk Hava Yollari 34411 Cfm56-7b26 2006-04 Sub-Leased 2011.04.01737-8K5(W) Thomson Airways Sunwing Airlines 34690 Cfm56-7b27b1 2007-01 Returned 2011.04.07737-8GJ(W) Transavia France Canjet Airlines 34901 Cfm56-7b24 2007-04 Returned 2011.04.22737-8GJ(W) Transavia France Canjet Airlines 34902 Cfm56-7b24 2007-06 Returned 2011.04.24737-8FH(W) Xl Airways Germany Canjet Airlines 35093 Cfm56-7b26 2007-01 Returned 2011.04.28737-8K5(W) Thomson Airways Sunwing Airlines 35139 Cfm56-7b27b1 2008-02 Returned 2011.04.14737-8Q8(W) Travel Service Airlines Somon Air 35275 Cfm56-7b26 2008-04 Returned 2011.04.19737-85P(W) Air Europa Boeing 35493 Cfm56-7b27b1 2011-03 Delivered 2011.04.27737-85P(W) Dragon Aviation Air Europa 35493 Cfm56-7b27b1 2011-03 Sold 2011.04.27737-85P(W) Shandong Airlines Dragon Aviation 35493 Cfm56-7b27b1 2011-03 Leased 2011.04.27737-8KN(W) Corendon Dutch Airlines Flydubai 35795 Cfm56-7b26 2009-02 Sub-Leased 2011.04.28737-8EH(W) Transavia Airlines Gol Transportes Aereos 35831 Cfm56-7b27 2010-01 Leased 2011.04.07737-82R(W) Pegasus Airlines Boeing 35983 Cfm56-7b26 2011-03 Delivered 2011.04.19737-82R(W) GE Capital Boeing Company 35983 Cfm56-7b26 2011-03 Sold 2011.04.19737-82R(W) Pegasus Airlines GE Capital 35983 Cfm56-7b26 2011-03 Leased 2011.04.19737-8ZS(W) S7 Airlines Boeing 37084 Cfm56-7b26 2011-03 Delivered 2011.04.27737-8ZS(W) Eight Hundred Holdings Boeing Company 37084 Cfm56-7b26 2011-03 Sold 2011.04.27737-8ZS(W) S7 Airlines Eight Hundred 37084 Cfm56-7b26 2011-03 Leased 2011.04.27737-8ZS(W) Globus Boeing Company 37084 Cfm56-7b26 2011-03 Sub-Leased 2011.04.27737-8K2(W) Transavia Airlines Caribbean Airlines 37160 Cfm56-7b27 2009-04 Returned 2011.04.08737-8EH(W) Transavia Airlines Gol Transportes Aereos 37600 Cfm56-7b27 2010-02 Leased 2011.04.12737-86N(W) Nbb-34954 Lease Brookdell 37884 Cfm56-7b26 2010-03 Sold 2011.04.05737-86N(W) Norwegian Nbb-34954 Lease 37884 Cfm56-7b26 2010-03 Leased 2011.04.05737-86N(W) GECAS Boeing 38017 Cfm56-7b26 2011-03 Delivered 2011.04.18737-86N(W) Xiamen Airlines GECAS 38017 Cfm56-7b26 2011-03 Leased 2011.04.18737-86N(W) GECAS Boeing 38018 Cfm56-7b26 2011-03 Delivered 2011.04.28737-86N(W) Travel Service Slovakia GECAS 38018 Cfm56-7b26 2011-03 Leased 2011.04.28737-86N(W) GECAS Boeing 38033 Cfm56-7b26 2011-03 Delivered 2011.04.15737-86N(W) Garuda Indonesian Airways GECAS 38033 Cfm56-7b26 2011-03 Leased 2011.04.15737-8V3(W) Copa Airlines Boeing 38139 Cfm56-7b26 2011-03 Delivered 2011.04.13737-8K5(W) ACG Boeing 39093 Cfm56-7b27b1 2011-03 Delivered 2011.04.06737-8K5(W) Jetairfl y ACG 39093 Cfm56-7b27b1 2011-03 Leased 2011.04.06737-84P(W) Hainan Airlines Boeing 39223 Cfm56-7b26 2011-03 Delivered 2011.04.29







737-8K2(W) Transavia Airlines Boeing 39260 Cfm56-7b27/3 2011-02 Delivered 2011.04.29737-81D(W) AWAS Boeing 39414 Cfm56-7b26 2011-04 Delivered 2011.04.26737-81D(W) Virgin Blue Airlines AWAS 39414 Cfm56-7b26 2011-04 Leased 2011.04.26737-89L(W) Air China Boeing 40032 Cfm56-7b26 2011-03 Delivered 2011.04.12737-8KN(W) Flydubai Boeing 40244 Cfm56-7b26 2011-03 Delivered 2011.04.21737-846(W) Japan Airlines Boeing 40352 Cfm56-7b24 2011-03 Delivered 2011.04.11737-846(W) JJ Phoenix 3 Boeing 40352 Cfm56-7b24 2011-03 Sold 2011.04.11737-846(W) Japan Airlines JJ Phoenix 3 40352 Cfm56-7b24 2011-03 Leased 2011.04.11737-846(W) Japan Airlines Boeing 40355 Cfm56-7b24 2011-03 Delivered 2011.04.18737-846(W) JJ Phoenix 4 Boeing Company 40355 Cfm56-7b24 2011-03 Sold 2011.04.18737-846(W) Japan Airlines JJ Phoenix 4 40355 Cfm56-7b24 2011-03 Leased 2011.04.18737-82R(W) Pegasus Airlines Boeing 40721 Cfm56-7b26 2011-03 Delivered 2011.04.11737-82R(W) Pegasus Airlines GE Capital 40721 Cfm56-7b26 2011-03 Sale-Leaseback 2011.04.11737-82R(W) Pegasus Airlines Boeing 40723 Cfm56-7b26 2011-03 Delivered 2011.04.22737-82R(W) GE Capital Boeing 40723 Cfm56-7b26 2011-03 Sold 2011.04.22737-82R(W) Pegasus Airlines GE Capital 40723 Cfm56-7b26 2011-03 Leased 2011.04.22737-8D6(W) Air Algerie Boeing 40862 Cfm56-7b26 2011-04 Delivered 2011.04.26737-82R(W) Pegasus Airlines Boeing 40877 Cfm56-7b26 2011-03 Delivered 2011.04.12737-82R(W) GE Capital Boeing Company 40877 Cfm56-7b26 2011-03 Sold 2011.04.12737-82R(W) Pegasus Airlines GE Capital 40877 Cfm56-7b26 2011-03 Leased 2011.04.12737-8ZQ(W) Tassili Airlines Boeing 40885 Cfm56-7b26 2011-03 Delivered 2011.04.15747-446 Aersale Japan Airlines 24784 Cf6-80c2b1f 1990-05 Sold 2011.04.12747-481 MCAP Japa All Nippon Airways 25641 Cf6-80c2b1f 1992-06 Returned 2011.04.14747-446 Transaero Airlines Vebl-767-300 26360 Cf6-80c2b1f 1998-06 Leased 2011.04.29757-23A(ETOPS) Thomas Cook Airlines Astraeus Airlines 24292 Rb211-535e4 1989-02 Sub-Leased 2011.04.29757-21B Pals Vi Santa Barbara Airlines 24402 Rb211-535e4 1989-05 Returned 2011.04.01757-256 Privilege Style Aerolinea Principal 26252 Rb211-535e4 1999-10 Returned 2011.04.05757-256 ILFC Atlasjet International 26254 Rb211-535e4 1999-11 Returned 2011.04.08757-256 ILFC ILFC 26254 Rb211-535e4 1999-11 Sold 2011.04.08757-256 I-Fly ILFC Aircraft 26254 Rb211-535e4 1999-11 Leased 2011.04.08757-2Q8(W) Utair Aviation Castle 26271 Pw2037 1993-11 Leased 2011.04.17757-2Q8(W) Cargo Aircraft Mgmt ILFC 26273 Pw2037 1993-12 Sold 2011.04.13757-2G5 Thomas Cook Airlines Jazz Air 26278 Rb211-535e4 1995-03 Returned 2011.04.06757-231 Federal Express Pacifi c Aircorp 28480 Pw2037 1997-03 Sold 2011.04.06757-236 Federal Express British Airways 28665 Rb211-535e4 1997-02 Sold 2011.04.15757-28A Thomas Cook Airlines Jazz Air 28835 Rb211-535e4 1999-02 Returned 2011.04.18757-256(WETOPS) Icelandair Air Niugini 29312 Rb211-535e4 2000-09 Returned 2011.04.30757-25F Thomas Cook Airlines Jazz Air 30757 Rb211-535e4 2000-04 Returned 2011.04.27757-25F Thomas Cook Airlines Jazz Air 30758 Rb211-535e4 2000-05 Returned 2011.04.15767-231 Boeing Company Italian Air Force 22569 Jt9d-7r4d 1982-12 Returned 2011.04.07767-283ER Aeromexico Wells Fargo 24728 Pw4060 1990-04 Leased 2011.04.01767-319ER Castle Lot Polish Airlines 24876 Cf6-80c2b6 1992-01 Returned 2011.04.08767-338ER Qantas Airways Ril Aviation 24929 Cf6-80c2b6 1990-11 Lease-Buyout 2011.04.12767-330ER ILFC Aircraft ILFC 25137 Pw4060 1991-05 Sold 2011.04.14767-330ER Blue Panorama ILFC Aircraft 25137 Pw4060 1991-05 Leased 2011.04.14767-3S1ER Aft Trust-Sub 1 Luzair 25221 Cf6-80c2b6f 1991-07 Returned 2011.04.15767-383ER Air Niugini Icelandair 25365 Pw4060 1991-09 Sub-Leased 2011.04.19767-328ER Jb 27427 Gol Transportes Aereos 27427 Cf6-80c2b6f 1995-04 Returned 2011.04.01767-33AER El Al AWMS 27477 Pw4060 1999-12 Leased 2011.04.01767-3Q8ER ILFC Kenya Airways 29383 Cf6-80c2b6f 1999-03 Returned 2011.04.15767-304ER(W) ILFC Thomson Airways 29384 Cf6-80c2b7f 2000-01 Returned 2011.04.04767-304ER(W) Tui Airlines Nederland ILFC 29384 Cf6-80c2b7f 2000-01 Leased 2011.04.04767-33AER AWMS I Hawaiian Airlines 33423 Pw4060 2002-12 Returned 2011.04.12767-316ER(W) Lan Airlines Lan Argentina 34629 Cf6-80c2b7f 2006-05 Returned 2011.04.01767-381ER All Nippon Airways Fi Walnut Leasing Company 40894 Cf6-80c2b6f 2011-02 Sale-Leaseback 2011.04.28777-21HER Capital MgmtHouse Sechzehnte Gamma 29324 Trent892 1998-09 Sold 2011.04.01777-21HER Emirates Capital MgmtHouse 29324 Trent892 1998-09 Leased 2011.04.02777-223ER American Airlines Wells Fargo 29588 Trent892-17 2000-02 Sale-Leaseback 2011.04.05777-260LR Ethiopian Airlines Boeing 40773 Ge90-110b1l 2011-04 Delivered 2011.04.27777-367ER Cathay Pacifi c Airways Boeing 37896 Ge90-115bl2 2011-03 Delivered 2011.04.29777-3DZER Qatar Airways Boeing 38246 Ge90-115b 2011-03 Delivered 2011.04.01777-36NER GECAS Boeing 38291 Ge90-115b 2011-03 Delivered 2011.04.12777-36NER Egyptair GECAS 38291 Ge90-115b 2011-03 Leased 2011.04.12777-328ER Air France Boeing 38706 Ge90-115b 2011-03 Delivered 2011.04.15777-328ER Daire Aviation Boeing 38706 Ge90-115b 2011-03 Sold 2011.04.15777-328ER Air France Daire Aviation 38706 Ge90-115b 2011-03 Leased 2011.04.15777-328ER Air France Boeing 39973 Ge90-115b 2011-02 Delivered 2011.04.01777-328ER Msn 39973 Boeing Company 39973 Ge90-115b 2011-02 Sold 2011.04.01777-328ER Air France Msn 39973 39973 Ge90-115b 2011-02 Leased 2011.04.01777-323ER American Airlines Boeing (2) Ge90-115b 2013-03 Ordered 2011.04.29787-9X2 Air Pacifi c Boeing (-8) Genx-1b70 - Cncl-Order 2011.04.01A300B4-605R Vertir Airlines Thai Airways 518 Cf6-80c2a5 1989-05 Sold 2011.04.01A300B4-622R Wells Fargo Japan Airlines 621 Pw4158 1991-10 Sold 2011.04.28A300B4-622R Wells Fargo Wells Fargo 637 Pw4158 1992-04 Sold 2011.04.21A300B4-622R Wells Fargo Wells Fargo 641 Pw4158 1992-05 Sold 2011.04.21A300B4-622R Wells Fargo Wells Fargo 711 Pw4158 1993-09 Sold 2011.04.07A300B4-622R Wells Fargo Wells Fargo 724 Pw4158 1994-01 Sold 2011.04.07A300B4-622R Wells Fargo Wells Fargo 729 Pw4158 1994-02 Sold 2011.04.21A300B4-622R Wells Fargo Ga Telesis 740 Pw4158 1994-07 Sold 2011.04.07A300B4-622R Maximus Air Cargo Japan Airlines 836 Pw4158 2002-05 Sold 2011.04.21A318-111 Frontier Airlines Wells Fargo 1991 Cfm56-5b8/P 2003-07 Sale-Leaseback 2011.04.26A318-111 Wells Fargo Frontier Airlines 2051 Cfm56-5b8/P 2003-09 Sold 2011.04.28A318-111 Avianca Wells Fargo 2377 Cfm56-5b8/P 2004-12 Leased 2011.04.04A318-111 Avianca Wells Fargo 2394 Cfm56-5b8/P 2005-01 Leased 2011.04.20A318-121 Airbus Financial Services Lan Airlines 3001 Pw6122a 2007-02 Sold 2011.04.18A318-121 Oceanair Linhas Aereas Airbus Financial Services 3001 Pw6122a 2007-02 Leased 2011.04.18A318-121 Lan Airlines Lan Ecuador 3469 Pw6122a 2008-05 Returned 2011.04.15A319-112 Aercap Lan Airlines 1612 Cfm56-5b6/P 2001-10 Returned 2011.04.29A319-112 Taca International CIT Leasing 1625 Cfm56-5b6/P 2001-11 Sub-Leased 2011.04.14A319-112 Aerolineas Galapagos Wells Fargo 2078 Cfm56-5b6/P 2003-11 Leased 2011.04.15







A319-111 Easyjet Easyjet Switzerland 2196 Cfm56-5b5/P 2004-03 Returned 2011.04.11A319-111 Easyjet Easyjet Switzerland 2230 Cfm56-5b5/P 2004-04 Returned 2011.04.05A319-132 ILFC Air Berlin 2383 V2524-A5 2005-01 Returned 2011.04.21A319-132 Cyprus Airways ILFC 2383 V2524-A5 2005-01 Leased 2011.04.21A319-132 ILFC Air Berlin 2468 V2524-A5 2005-05 Returned 2011.04.27A319-132 AWAS ILFC 2468 V2524-A5 2005-05 Sold 2011.04.27A319-132 Aegean Airlines AWAS 2468 V2524-A5 2005-05 Leased 2011.04.27A319-111 RBS Aviation Capital Iberia 2889 Cfm56-5b5/P 2006-09 Sold 2011.04.01A319-111 Vueling Airlines RBS Aviation 2889 Cfm56-5b5/P 2006-09 Leased 2011.04.02A319-112 Germania Niki Luftfahrt 3407 Cfm56-5b6/3 2008-02 Leased 2011.04.01A319-112 Germania Airbus 4663 Cfm56-5b6/3 2011-03 Delivered 2011.04.18A319-132 Turk Hava Yollari Airbus 4665 V2524-A5 2011-04 Delivered 2011.04.14A319-111 Easyjet Airbus 4667 Cfm56-5b5/3 2011-03 Delivered 2011.04.12A319-132LR Aegean Airlines Olympic Air 1880 V2524-A5 2003-03 Sub-Leased 2011.04.01ACJ319-115 Stumpf Group Triple Alpha 3046 Cfm56-5b7/P 2007-03 Returned 2011.04.01ACJ319-115 K5 Aviation Stumpf Group 3046 Cfm56-5b7/P 2007-03 Leased 2011.04.02ACJ319-133 Deer Air Airbus 4042 V2527m-A5 2009-10 Returned 2011.04.22ACJ319-133 Hainan Airlines Airbus 4042 V2527m-A5 2009-10 Returned 2011.04.22ACJ319-133 Beijing Capital Airlines Hainan Airlines 4042 V2527m-A5 2009-10 Leased 2011.04.22ACJ319-115 Rossiya Airlines Airbus 4679 Cfm56-5b7/3 2011-03 Delivered 2011.04.19ACJ319-115 Airbus Rossiya Airlines 4679 Cfm56-5b7/3 2011-03 Leased 2011.04.19A320-211 Jordan Aviation Syrianair 029 Cfm56-5a1 1989-01 Returned 2011.04.01A320-211 Dubrovnik Airlines Astraeus Airlines 136 Cfm56-5a1 1990-10 Sub-Leased 2011.04.30A320-232 MCAP Europe Thomas Cook Airline 1411 V2527-A5 2001-01 Returned 2011.04.01A320-232 Small Planet Airlines MCAP Europe 1411 V2527-A5 2001-01 Leased 2011.04.01A320-233 Lan Argentina Lan Airlines 1568 V2527e-A5 2001-08 Sub-Leased 2011.04.08A320-211 Vueling Airlines Iberia 173 Cfm56-5a1 1991-02 Leased 2011.04.01A320-214 Vueling Airlines Iberia 2143 Cfm56-5b4/P 2003-11 Leased 2011.04.01A320-232 RBS Aerospace Easyjet 2157 V2527-A5 2004-01 Returned 2011.04.21A320-232 Avianova [Russia] RBS Aerospace 2157 V2527-A5 2004-01 Leased 2011.04.21A320-232 Macquarie Airfi nance White Airways 2204 V2527-A5 2004-04 Returned 2011.04.13A320-232 Volaris Macquarie Airfi nance 2204 V2527-A5 2004-04 Leased 2011.04.13A320-232 Srilankan Airlines CIT Aerospace 2345 V2527-A5 2004-12 Leased 2011.04.07A320-211 Vueling Airlines Iberia 266 Cfm56-5a1 1991-10 Leased 2011.04.02A320-214 Azerbaijan Airlines Air Berlin 2685 Cfm56-5b4/P 2006-02 Sold 2011.04.15A320-212 Aerco Nouvelair Tunisie 299 Cfm56-5a3 1992-01 Returned 2011.04.18A320-212 Amsterdam Airlines Aerco 299 Cfm56-5a3 1992-01 Leased 2011.04.18A320-211 Nouvelair Tunisie Libyan Airlines 348 Cfm56-5a1 1992-06 Returned 2011.04.01A320-212 Firstnation Airways Wells Fargo 409 Cfm56-5a3 1993-02 Leased 2011.04.04A320-212 Aeroturbine Wells Fargo 420 Cfm56-5a3 1993-03 Transferred 2011.04.15A320-214 Skylease Netherlands Aerventure 4235 Cfm56-5b4/3 2010-02 Sold 2011.04.01A320-214 Skylease Netherlands Aerventure 4304 Cfm56-5b4/3 2010-05 Sold 2011.04.01A320-232 Wizz Air Hungary Wizz Air Bulgaria 4308 V2527-A5 2010-05 Returned 2011.04.01A320-233 Lan Ecuador Lan Airlines 4383 V2527e-A5 2010-07 Leased 2011.04.08A320-233 Lan Ecuador Lan Airlines 4400 V2527e-A5 2010-08 Sub-Leased 2011.04.29A320-214 Skylease Netherlands Aerventure 4411 Cfm56-5b4/3 2010-08 Sold 2011.04.01A320-214 Aerventure Skylease Netherlands 4411 Cfm56-5b4/3 2010-08 Sold 2011.04.28A320-231 Phoenix Leasing Hanover Leasing 444 V2500-A1 1993-08 Sold 2011.04.21A320-231 Adria Airways Phoenix Leasing 444 V2500-A1 1993-08 Leased 2011.04.21A320-232 Sichuan Airlines Airbus 4525 V2527-A5 2011-03 Delivered 2011.04.01A320-232 Hainan Airlines Airbus 4540 V2527-A5 2011-03 Delivered 2011.04.13A320-232 China West Air Hainan Airlines 4540 V2527-A5 2011-03 Leased 2011.04.13A320-214 China Southern Airbus 4550 Cfm56-5b4/3 2011-04 Delivered 2011.04.29A320-232 Air China Airbus 4566 V2527-A5 2011-04 Delivered 2011.04.26A320-214 GECAS Airbus 4600 Cfm56-5b4/3 2011-02 Delivered 2011.04.06A320-214 Bahrain Air GECAS 4600 Cfm56-5b4/3 2011-02 Leased 2011.04.06A320-232 Tiger Airways Airbus 4608 V2527-A5 2011-02 Delivered 2011.04.07A320-214 GECAS Airbus 4625 Cfm56-5b4/3 2011-03 Delivered 2011.04.21A320-214 Aerofl ot GECAS 4625 Cfm56-5b4/3 2011-03 Leased 2011.04.21A320-232 Tiger Airways Airbus 4645 V2527-A5 2011-03 Delivered 2011.04.21A320-232 Tiger Airways Falcon Aircraft 4645 V2527-A5 2011-03 Sale-Leaseback 2011.04.21A320-232 Tiger Airways Aus Airbus 4645 V2527-A5 2011-03 Sub-Leased 2011.04.21A320-232 Jetblue Airways Airbus 4647 V2527-A5 2011-03 Delivered 2011.04.07A320-214 BOC Aviation Airbus 4649 Cfm56-5b4/3 2011-03 Delivered 2011.04.06A320-214 Aerofl ot BOC Aviation 4649 Cfm56-5b4/3 2011-03 Leased 2011.04.06A320-214 Uzbekistan Airways Airbus 4651 Cfm56-5b4/3 2011-03 Delivered 2011.04.01A320-232 Yemenia Airbus 4653 V2527-A5 2011-03 Delivered 2011.04.27A320-214 ACG Airbus 4655 Cfm56-5b4/3 2011-03 Delivered 2011.04.07A320-214 Bank Of Utah Airbus 4655 Cfm56-5b4/3 2011-03 Sold 2011.04.07A320-214 Virgin America Bank Of Utah 4655 Cfm56-5b4/3 2011-03 Leased 2011.04.07A320-214 BOC Aviation Airbus 4656 Cfm56-5b4/3 2011-03 Delivered 2011.04.14A320-214 Aerofl ot BOC Aviation 4656 Cfm56-5b4/3 2011-03 Leased 2011.04.14A320-214 ACG Airbus 4658 Cfm56-5b4/3 2011-03 Delivered 2011.04.22A320-214 Free Bird Airlines ACG 4658 Cfm56-5b4/3 2011-03 Leased 2011.04.22A320-214 China Eastern Airbus 4659 Cfm56-5b4/3 2011-03 Delivered 2011.04.01A320-212 Firstnation Airways ACG Acquisition 466 Cfm56-5a3 1994-04 Leased 2011.04.04A320-214 GECAS Airbus 4661 Cfm56-5b4/3 2011-03 Delivered 2011.04.14A320-214 Vueling Airlines GECAS 4661 Cfm56-5b4/3 2011-03 Leased 2011.04.14A320-214 Air France Airbus 4664 Cfm56-5b4/3 2011-03 Delivered 2011.04.14A320-214 Air France Chishima Real Estate 4664 Cfm56-5b4/3 2011-03 Sale-Leaseback 2011.04.19A320-232 Shenzhen Airlines Airbus 4666 V2527-A5 2011-03 Delivered 2011.04.29A320-214 Frontier Airlines Airbus 4668 Cfm56-5b4/3 2011-04 Delivered 2011.04.21A320-214 Bank Of Utah Airbus 4668 Cfm56-5b4/3 2011-04 Sold 2011.04.21A320-214 Frontier Airlines Bank Of Utah 4668 Cfm56-5b4/3 2011-04 Leased 2011.04.21A320-232 AWAS Airbus 4670 V2527-A5 2011-03 Delivered 2011.04.29A320-232 Royal Jordanian AWAS 4670 V2527-A5 2011-03 Leased 2011.04.29A320-214 Air Berlin Airbus 4671 Cfm56-5b4/3 2011-04 Delivered 2011.04.14A320-214 ICBC Air Berlin 4671 Cfm56-5b4/3 2011-04 Sold 2011.04.20A320-214 China Southern ICBC 4671 Cfm56-5b4/3 2011-04 Leased 2011.04.20A320-214 CIT Leasing Airbus 4673 Cfm56-5b4/3 2011-04 Delivered 2011.04.20







A320-214 Wells Fargo Airbus 4673 Cfm56-5b4/3 2011-04 Sold 2011.04.20A320-214 Swiss International Wells Fargo 4673 Cfm56-5b4/3 2011-04 Leased 2011.04.20A320-214 Air Berlin Airbus 4674 Cfm56-5b4/3 2011-04 Delivered 2011.04.18A320-214 GECAS Airbus 4675 Cfm56-5b4/3 2011-04 Delivered 2011.04.21A320-214 Celestial Aviation Airbus 4675 Cfm56-5b4/3 2011-04 Sold 2011.04.21A320-214 Aigle Azur Celestial Aviation 4675 Cfm56-5b4/3 2011-04 Leased 2011.04.21A320-214 Easyjet Airbus 4676 Cfm56-5b4/3 2011-03 Delivered 2011.04.18A320-214 Aer Lingus Airbus 4678 Cfm56-5b4/3 2011-04 Delivered 2011.04.27A320-214 Easyjet Airbus 4680 Cfm56-5b4/3 2011-04 Delivered 2011.04.14A320-214 Air Lease Airbus 4681 Cfm56-5b4/3 2011-04 Delivered 2011.04.29A320-214 Vueling Airlines Air Lease 4681 Cfm56-5b4/3 2011-04 Leased 2011.04.29A320-232 Wizz Air Hungary Airbus 4683 V2527-A5 2011-03 Delivered 2011.04.29A320-232 Wizz Air Hungary Jackson Square 4683 V2527-A5 2011-03 Sale-Leaseback 2011.04.29A320-232 Hainan Airlines Airbus 4687 V2527-A5 2011-04 Delivered 2011.04.26A320-232 China West Air Hainan Airlines 4687 V2527-A5 2011-04 Leased 2011.04.26A320-212 Firstnation Airways Wells Fargo 497 Cfm56-5a3 1994-09 Leased 2011.04.04A320-214 Yes Airways Wells Fargo 533 Cfm56-5b4/2p 1995-03 Leased 2011.04.28A320-212 ILFC Bahrain Air 579 Cfm56-5a3 1996-02 Returned 2011.04.18A320-212 ILFC Bahrain Air 645 Cfm56-5a3 1996-11 Returned 2011.04.05A320-233 RAK Airways Air Moldova 741 V2527e-A5 1997-10 Sub-Leased 2011.04.01A320-200NEO(W) ILFC Airbus (42) Pw1127g 2015-12 Ordered 2011.04.27A320-200NEO(W) ILFC Airbus (33) 2016-01 Ordered 2011.04.27A321-111 Air Mediterranee Myanma Airways 642 Cfm56-5b1/P 1997-01 Returned 2011.04.01A321-231 Sierra Leasing Airblue 1199 V2533-A5 2000-03 Returned 2011.04.18A321-231 Calliope Sierra Leasing 1199 V2533-A5 2000-03 Sold 2011.04.18A321-211 ILFC ILFC 1905 Cfm56-5b3/P 2003-01 Sold 2011.04.19A321-211 Bellevue Leasing Wells Fargo 2117 Cfm56-5b3/P 2003-12 Sold 2011.04.28A321-211 Solaris Airlines Bellevue Leasing 2117 Cfm56-5b3/P 2003-12 Leased 2011.04.28A321-231 Tam Linhas Aereas Airbus 4662 V2533-A5 2011-03 Delivered 2011.04.28A321-231 Vietnam Airlines Airbus 4669 V2533-A5 2011-04 Delivered 2011.04.28A321-231 Lufthansa Airbus 4672 V2533-A5 2011-04 Delivered 2011.04.11A321-231 Turk Hava Yollari Airbus 4682 V2533-A5 2011-04 Delivered 2011.04.28A321-211 ILFC Aer Lingus 841 Cfm56-5b3/P 1998-06 Returned 2011.04.05A321-211 Ural Airlines ILFC 841 Cfm56-5b3/P 1998-06 Leased 2011.04.05A321-211 ILFC Aer Lingus 991 Cfm56-5b3/P 1999-03 Returned 2011.04.28A321-211 Ural Airlines ILFC 991 Cfm56-5b3/P 1999-03 Leased 2011.04.28A321-200NEO(W) ILFC Airbus (18) Pw1133g 2018-11 Ordered 2011.04.27A321-200NEO(W) ILFC Airbus (7) 2019-02 Ordered 2011.04.27A330-223 Tam Linhas Aereas Airbus 1213 Pw4170 2011-03 Delivered 2011.04.14A330-243 AWAS Airbus 1214 Trent772b-60 2011-03 Delivered 2011.04.14A330-243 Garuda Indonesian AWAS 1214 Trent772b-60 2011-03 Leased 2011.04.14A330-243 Hawaiian Airlines Airbus 1217 Trent772b-60 2011-02 Delivered 2011.04.12A330-202 Air Lease Airbus 1218 Cf6-80e1a4b 2011-03 Delivered 2011.04.15A330-202 ALC Warehouse Airbus 1218 Cf6-80e1a4b 2011-03 Sold 2011.04.15A330-202 Alitalia ALC Warehouse 1218 Cf6-80e1a4b 2011-03 Leased 2011.04.15A330-223 China Southern Airlines Airbus 1220 Pw4170 2011-04 Delivered 2011.04.29A330-243 Vb A330 Leasing Zamrid 372 Trent772b-60 2000-11 Sold 2011.04.19A330-243 Virgin Blue Airlines Vb A330 Leasing 372 Trent772b-60 2000-11 Leased 2011.04.19A330-200 Aercap Aviation Airbus (-1) - Cncl-Order 2011.04.01A330-301 Airbus Aer Lingus 059 Cf6-80e1a2 1994-06 Returned 2011.04.16A330-301 GECAS Airbus 059 Cf6-80e1a2 1994-06 Sold 2011.04.16A330-323E Malaysian Airline System Airbus 1209 Pw4168a 2011-03 Delivered 2011.04.04A330-343E Virgin Atlantic Airbus 1215 Trent772b-60 2011-03 Delivered 2011.04.11A330-343E Virgin Atlantic Aercap 1215 Trent772b-60 2011-03 Sale-Leaseback 2011.04.11A330-343E China Airlines Airbus 1215 Trent772b-60 2011-03 Sub-Leased 2011.04.11A330-343 Air China Airbus 1216 Trent772c-60 2011-03 Delivered 2011.04.06A330-343E Orbest Xl Airways France 833 Trent772b-60 2007-03 Returned 2011.04.11A340-212 Republic Financial South African Airways 021 Cfm56-5c3/F 1993-08 Returned 2011.04.30A340-313X Iberia Ames-Camo 414 Cfm56-5c4 2001-05 Leased 2011.04.01A380-842 Qantas Airways Airbus 062 Trent972-84 2010-09 Delivered 2011.04.08A380-842 Qantas Airways QF ECA 062 Trent972-84 2010-09 Sale-Leaseback 2011.04.08A380-861 ILFC Airbus (-4) Gp7270 - Cncl-Order 2011.04.01A380-800 ILFC Airbus (-6) - Cncl-Order 2011.04.01

MAY717-2K9 Aerolineas De Baleares Spanair 55056 BR715A1-30 1999-11 Returned 2011.05.28717-2K9 Bavaria Leasing Spanair 55056 BR715A1-30 1999-11 Returned 2011.05.28717-2K9 Blue1 Bavaria Leasing 55056 BR715A1-30 1999-11 Leased 2011.05.29727-23 DJ Aerospace Trump Group 20046 JT8D-7 1968-06 Returned 2011.05.25727-23 Weststar Aviation DJ Aerospace 20046 JT8D-7 1968-06 Sold 2011.05.26727-2B6 Team Aviation New Orleans Hornets 21068 JT8D-15 1975-01 Returned 2011.05.16737-2K5 Map Asset Preservation Wells Fargo 22597 JT8D-15A 1981-05 Sold 2011.05.17737-277 Unknown Starline 22650 JT8D-15 1981-09 Sold 2011.05.01737-2T5 Aerofi nance Aerolineas Galapagos 22979 JT8D-15 1983-02 Returned 2011.05.01737-2T5 Avior Airlines Aerofi nance 22979 JT8D-15 1983-02 Leased 2011.05.02737-2Y5 Avior Airlines Belina Export 23848 JT8D-15A 1987-06 Leased 2011.05.12737-33A Alba Star Air Batumi 23628 CFM56-3B1 1986-10 Sub-Leased 2011.05.26737-375 Jet Time Wells Fargo 23808 CFM56-3B2 1987-07 Leased 2011.05.06737-3Y0 Air Guinee Larrett 23927 CFM56-3B1 1988-06 Sold 2011.05.24737-322 Source One Wilmington Trust 24245 CFM56-3C1 1988-09 Sold 2011.05.11737-3K2 Jetscape NAS 24327 CFM56-3B2 1989-04 Returned 2011.05.12737-3K2 Small Planet Airlines Jetscape 24327 CFM56-3B2 1989-04 Leased 2011.05.12737-329 Transalpine Leasing Unknown 24355 CFM56-3B2 1989-03 Sold 2011.05.11737-329 Transaero Airlines Transalpine Leasing 24355 CFM56-3B2 1989-03 Leased 2011.05.11737-3G7 Orix Aviation Wells Fargo 24634 CFM56-3B2 1990-01 Sold 2011.05.10737-3G7 Aerolinea Principal Chile Orix Aviation 24634 CFM56-3B2 1990-01 Leased 2011.05.10737-322 Tor Air Small Planet Airlines 24664 CFM56-3C1 1990-05 Sub-Leased 2011.05.17737-35B Tor Air Flylal Charter 25069 CFM56-3B2 1991-04 Sub-Leased 2011.05.01737-3L9 Galaxy Aviation Eastern Sky Jets 25125 CFM56-3B2 1991-05 Returned 2011.05.01737-33A AWMS NAS 27458 CFM56-3B1 1997-10 Returned 2011.05.26







737-36N Hainan Airlines China West Air 28606 CFM56-3B2 1999-09 Returned 2011.05.10737-31S Air Zena Deutsche Finance 29116 CFM56-3C1 1998-02 Leased 2011.05.01737-3S3 Pinewatch Salg-7 29245 CFM56-3C1 1998-07 Sold 2011.05.11737-3S3 Transaero Airlines Pinewatch 29245 CFM56-3C1 1998-07 Leased 2011.05.13737-4B3 Jetairfl y Jet4you 24750 CFM56-3C1 1990-08 Returned 2011.05.10737-4B3 Tuifl y Nordic Jet4you 24750 CFM56-3C1 1990-08 Returned 2011.05.10737-4B3 Aar Services Tuifl y Nordic 24750 CFM56-3C1 1990-08 Sold 2011.05.10737-4B3 Nat Nuclear Aar Services 24750 CFM56-3C1 1990-08 Sold 2011.05.17737-4Y0 Airplanes Holdings Air One 24906 CFM56-3C1 1991-02 Returned 2011.05.25737-4Q8 BCC Leasing Solitaire Air 25109 CFM56-3C1 1993-11 Returned 2011.05.10737-429 Japan Transocean Air Hibiscus 25247 CFM56-3C1 1991-07 Lease-Buyout 2011.05.30737-484 Bank Of Utah Aersale 25361 CFM56-3C1 1991-08 Sold 2011.05.19737-48E Alnaser Airlines Jetran 25765 CFM56-3C1 1992-06 Leased 2011.05.06737-436 Ryan Ryan Intl 25843 CFM56-3C1 1992-02 Returned 2011.05.09737-436 Aviation Exchange Ryan 25843 CFM56-3C1 1992-02 Sold 2011.05.09737-436 Aviation Technologies Aviation Exchange 25843 CFM56-3C1 1992-02 Sold 2011.05.09737-436 Mistral Air Dillondell 25851 CFM56-3C1 1992-10 Leased 2011.05.01737-46J Eastern Sky Jets East Air 27213 CFM56-3C1 1994-02 Sub-Leased 2011.05.01737-4Q3 Japan Transocean Air Japan Airlines 29485 CFM56-3C1 1998-10 Lease-Buyout 2011.05.31737-505 Nbb- Lease Pship Blue Air 24274 CFM56-3C1 1991-03 Returned 2011.05.19737-505 Jeritt Nbb- Lease Pship 24274 CFM56-3C1 1991-03 Sold 2011.05.19737-5Y0 Wells Fargo Wells Fargo 24897 CFM56-3B1 1991-01 Sold 2011.05.20737-53A AWMS I Skyexpress 24921 CFM56-3C1 1990-11 Returned 2011.05.24737-548(W) Barkham Associates Air Baltic 24968 CFM56-3B1 1990-11 Returned 2011.05.31737-529 Kalstar Aviation Aero North Intl 26537 CFM56-3B1 1992-05 Leased 2011.05.01737-55D Celestial Aviation Lot Polish Airlines 27418 CFM56-3C1 1992-10 Returned 2011.05.01737-528 Itochu Lease Estonian Air 27425 CFM56-3C1 1995-05 Returned 2011.05.27737-528 Wells Fargo Itochu Lease 27425 CFM56-3C1 1995-05 Sold 2011.05.27737-5Q8 ILFC Pegasus Airlines 28201 CFM56-3C1 1998-01 Returned 2011.05.04737-524(W) Utair Aviation Wells Fargo 28901 CFM56-3C1 1997-07 Leased 2011.05.23737-524(W) Utair Aviation BLF 28911 CFM56-3C1 1997-11 Leased 2011.05.10737-524(W) Continental Airlines Wells Fargo 28914 CFM56-3C1 1997-12 Lease-Buyout 2011.05.20737-683 Infi nity Aviation Fl Uranus Leasing 28295 CFM56-7B20 1998-10 Sold 2011.05.05737-683 SAS Infi nity Aviation 28295 CFM56-7B20 1998-10 Leased 2011.05.05737-683 Infi nity Aviation FG Honest Kumiai 28296 CFM56-7B20 1997-12 Sold 2011.05.05737-683 SAS Infi nity Aviation 28296 CFM56-7B20 1997-12 Leased 2011.05.05737-683 Infi nity Aviation Fl Titan Leasing 28297 CFM56-7B20 1998-01 Sold 2011.05.05737-683 SAS Infi nity Aviation 28297 CFM56-7B20 1998-01 Leased 2011.05.05737-7Q8(W) ILFC Virgin Blue Airlines 28238 CFM56-7B24 2001-03 Returned 2011.05.03737-7Q8(W) ILFC ILFC 28238 CFM56-7B24 2001-03 Sold 2011.05.03737-7Q8(W) Aerolineas Argentinas ILFC 28238 CFM56-7B24 2001-03 Leased 2011.05.18737-7Q8(W) ILFC Virgin Blue Airlines 28240 CFM56-7B24 2001-04 Returned 2011.05.09737-7Q8(W) ILFC ILFC 28240 CFM56-7B24 2001-04 Sold 2011.05.09737-7Q8(W) Aerolineas Argentinas ILFC 28240 CFM56-7B24 2001-04 Leased 2011.05.22737-76Q(W) Rain Air Berlin 30277 CFM56-7B24 2001-08 Returned 2011.05.31737-73V BOC Aviation Easyjet 32422 CFM56-7B20 2003-07 Returned 2011.05.11737-73V SA Victoria BOC Aviation 32422 CFM56-7B20 2003-07 Sold 2011.05.11737-73V(W) Air Italy SA Victoria 32422 CFM56-7B20 2003-07 Leased 2011.05.12737-7BD(W) Cameroon Airlines ACG 33920 CFM56-7B20 2005-06 Leased 2011.05.10737-7H4(W) Southwest Airlines Boeing 36673 CFM56-7B24 2011-05 Delivered 2011.05.26737-7CT(W) BOC Aviation Boeing 37956 CFM56-7B20 2011-04 Delivered 2011.05.19737-7CT(W) Westjet BOC Aviation 37956 CFM56-7B20 2011-04 Leased 2011.05.19737-7K2(W) CIT Leasing Boeing 38127 CFM56-7B22/3 2011-04 Delivered 2011.05.09737-7K2(W) KLM CIT Leasing 38127 CFM56-7B22/3 2011-04 Leased 2011.05.09737-7H4(W) Southwest Airlines Boeing 41528 CFM56-7B24 2011-05 Delivered 2011.05.24737-8K5(W) Air Berlin Tuifl y 27981 CFM56-7B26 1997-06 Sub-Leased 2011.05.10737-8K5(W) Air Berlin Tuifl y 27987 CFM56-7B27 2000-02 Sub-Leased 2011.05.01737-86J(W) ACG Saga Airlines 28069 CFM56-7B26 1998-03 Returned 2011.05.31737-85P Aircastle Lombard Aviation 28381 CFM56-7B26 1999-03 Sold 2011.05.01737-85P(W) Orenburg Airlines Aircastle 28381 CFM56-7B26 1999-03 Leased 2011.05.02737-85P Comair Aircastle 28382 CFM56-7B26 1999-03 Leased 2011.05.04737-85F Travel Service Airlines Calima De Aviacion 28821 CFM56-7B26 1998-10 Sub-Leased 2011.05.27737-82R ILFC Pegasus Airlines 29344 CFM56-7B26 2001-04 Returned 2011.05.31737-8Q8(W) Travel Service Airlines Sunwing Airlines 29351 CFM56-7B26 2004-03 Sub-Leased 2011.05.20737-85F(W) Flyfi refl y Macquarie 30007 CFM56-7B26 2000-12 Leased 2011.05.12737-86Q(W) Air Lease Wells Fargo 30292 CFM56-7B26 2004-01 Sold 2011.05.01737-86Q(W) Sunwing Airlines Air Lease 30292 CFM56-7B26 2004-01 Leased 2011.05.02737-86Q(W) Travel Service Sunwing Airlines 30294 CFM56-7B26 2004-02 Returned 2011.05.19737-85F(W) Macquarie South African Airways 30567 CFM56-7B26 2001-01 Returned 2011.05.20737-85F(W) Flyfi refl y Macquarie 30567 CFM56-7B26 2001-01 Leased 2011.05.20737-8Q8(W) Sun Country ILFC 30637 CFM56-7B26 2001-02 Leased 2011.05.14737-8Q8(W) Travel Service Airlines Sunwing Airlines 30719 CFM56-7B26 2007-04 Returned 2011.05.27737-86N(W) Flyfi refl y MAS 32690 CFM56-7B26 2007-04 Sub-Leased 2011.05.01737-86N(W) GECAS Pegasus Airlines 32735 CFM56-7B26 2002-03 Returned 2011.05.23737-86N(W) Orenburg Airlines GECAS 32735 CFM56-7B26 2002-03 Leased 2011.05.24737-86N(W) Celestial Aviation Pegasus Airlines 32736 CFM56-7B26 2002-03 Returned 2011.05.29737-8K5(W) Travel Service Airlines Tabarak Aviation 32907 CFM56-7B27B1 2002-03 Returned 2011.05.01737-86J(W) Caribbean Airlines ALC 32919 CFM56-7B26 2003-01 Leased 2011.05.07737-86J(W) Air Jamaica Caribbean Airlines 32919 CFM56-7B26 2003-01 Sub-Leased 2011.05.08737-8BK(W) Thomson Airways Sunwing Airlines 33029 CFM56-7B26 2006-04 Sub-Leased 2011.05.27737-8AS(W) Sunexpress Germany RBS Aerospace 33558 CFM56-7B24 2004-01 Leased 2011.05.17737-8AS(W) Sunexpress Germany RBS Aerospace 33562 CFM56-7B24 2004-02 Leased 2011.05.27737-8AS(W) Sunexpress Germany RBS Aerospace 33563 CFM56-7B24 2004-03 Leased 2011.05.27737-8Q8(W) Spicejet ILFC 33699 CFM56-7B27 2003-03 Leased 2011.05.16737-8FE(W) Virgin Australia Virgin Blue 33796 CFM56-7B26 2003-08 Transferred 2011.05.04737-8FE(W) Pacifi c Blue Virgin Australia 33796 CFM56-7B26 2003-08 Leased 2011.05.04737-8FE(W) Virgin Australia Virgin Blue 33797 CFM56-7B26 2003-09 Transferred 2011.05.04737-8FE(W) Pacifi c Blue Virgin Australia 33797 CFM56-7B26 2003-09 Leased 2011.05.04737-8FE(W) Virgin Australia Virgin Blue 33799 CFM56-7B26 2004-02 Transferred 2011.05.04737-8FE(W) Pacifi c Blue Virgin Australia 33799 CFM56-7B26 2004-02 Leased 2011.05.04







737-8FE(W) Polynesian Blue Polynesian Blue 33799 CFM56-7B26 2004-02 Sub-Leased 2011.05.04737-8FE(W) Virgin Australia Virgin Blue 33996 CFM56-7B26 2004-07 Transferred 2011.05.04737-8FE(W) Pacifi c Blue Virgin Australia 33996 CFM56-7B26 2004-07 Leased 2011.05.04737-8FE(W) Vbnc 4 Boeing 34013 CFM56-7B26 2004-08 Transferred 2011.05.04737-8FE(W) Pacifi c Blue Pacifi c Blue 34013 CFM56-7B26 2004-08 Sub-Leased 2011.05.04737-8FE(W) Vbnc 4 Boeing 34015 CFM56-7B26 2004-10 Transferred 2011.05.04737-8FE(W) Pacifi c Blue Pacifi c Blue 34015 CFM56-7B26 2004-10 Sub-Leased 2011.05.04737-838(W) Qantas Airways Boeing 34192 CFM56-7B24 2011-04 Delivered 2011.05.13737-86N(W) ALC GECAS 34253 CFM56-7B26 2006-01 Sold 2011.05.01737-86N(W) Xiamen Airlines ALC 34253 CFM56-7B26 2006-01 Leased 2011.05.02737-86N(W) Air Lease GECAS 34254 CFM56-7B26 2006-02 Sold 2011.05.01737-86N(W) Shanghai Airlines Air Lease 34254 CFM56-7B26 2006-02 Leased 2011.05.02737-8FE(W) Virgin Australia Virgin Blue 34440 CFM56-7B26 2006-07 Transferred 2011.05.04737-8FE(W) Pacifi c Blue Virgin Australia 34440 CFM56-7B26 2006-07 Leased 2011.05.04737-808(W) Travel Service Airlines Sunwing Airlines 34704 CFM56-7B27 2006-05 Sub-Leased 2011.05.26737-808(W) Lucky Air Hainan Airlines 34967 CFM56-7B26 2007-03 Sub-Leased 2011.05.31737-808(W) Lucky Air Hainan Airlines 34968 CFM56-7B26 2007-04 Sub-Leased 2011.05.31737-84P(W) ALC BOC Aviation 35077 CFM56-7B26 2007-10 Sold 2011.05.01737-84P(W) Hainan Airlines ALC 35077 CFM56-7B26 2007-10 Leased 2011.05.02737-8FH(W) Pegasus Airlines RAK Airways 35094 CFM56-7B26 2007-02 Returned 2011.05.31737-8FH(W) ALC RBS Aerospace 35101 CFM56-7B26 2007-11 Sold 2011.05.01737-8FH(W) Hainan Airlines ALC 35101 CFM56-7B26 2007-11 Leased 2011.05.02737-852(W) Aeromexico Air Lease 35120 CFM56-7B26 2007-05 Sale-Leaseback 2011.05.02737-8K5(W) Thomson Airways Sunwing Airlines 35131 CFM56-7B27B1 2007-03 Returned 2011.05.12737-8K5(W) Tuifl y Sunwing Airlines 35143 CFM56-7B27B1 2008-12 Returned 2011.05.12737-8K5(W) Thomson Airways Sunwing Airlines 35145 CFM56-7B27B1 2009-03 Returned 2011.05.25737-8K5(W) Jetairfl y Canjet Airlines 35148 CFM56-7B27B1 2009-01 Returned 2011.05.03737-86N(W) Astra Airlines AMC Airlines 35213 CFM56-7B26 2007-05 Sub-Leased 2011.05.25737-8EH(W) Gol Boeing 35842 CFM56-7B27 2011-04 Delivered 2011.05.27737-8HC(W) Air Lease GE Capital 36529 CFM56-7B26 2008-03 Sold 2011.05.01737-8HC(W) Sunexpress Air Lease 36529 CFM56-7B26 2008-03 Leased 2011.05.02737-85P(W) Air Europa Boeing 36584 CFM56-7B27B1 2011-04 Delivered 2011.05.12737-85P(W) Dragon Aviation Air Europa 36584 CFM56-7B27B1 2011-04 Sold 2011.05.12737-85P(W) Shandong Airlines Dragon Aviation 36584 CFM56-7B27B1 2011-04 Leased 2011.05.12737-8FE(W) Virgin Australia Virgin Blue 36601 CFM56-7B26 2008-02 Transferred 2011.05.04737-8FE(W) Pacifi c Blue Virgin Australia 36601 CFM56-7B26 2008-02 Leased 2011.05.04737-8FE(W) Vbnc 9 Virgin Blue 36604 CFM56-7B26 2008-06 Transferred 2011.05.04737-8FE(W) Pacifi c Blue Pacifi c Blue 36604 CFM56-7B26 2008-06 Sub-Leased 2011.05.04737-8FE(W) BOC Aviation Virgin Blue 36605 CFM56-7B26 2008-07 Transferred 2011.05.04737-8FE(W) Pacifi c Blue Pacifi c Blue 36605 CFM56-7B26 2008-07 Sub-Leased 2011.05.04737-86J(W) Air Berlin Boeing 36878 CFM56-7B26 2011-04 Delivered 2011.05.16737-86J(W) ICBC Air Berlin 36878 CFM56-7B26 2011-04 Sold 2011.05.16737-86J(W) China Southern ICBC 36878 CFM56-7B26 2011-04 Leased 2011.05.16737-8ZS(W) S7 Airlines Boeing 37085 CFM56-7B26 2011-04 Delivered 2011.05.23737-8ZS(W) Eight Hundred Boeing 37085 CFM56-7B26 2011-04 Sold 2011.05.23737-8ZS(W) S7 Airlines Eight Hundred 37085 CFM56-7B26 2011-04 Leased 2011.05.23737-8ZS(W) Globus Boeing 37085 CFM56-7B26 2011-04 Sub-Leased 2011.05.23737-8K5(W) Tui Travel Boeing 37258 CFM56-7B27B1 2011-05 Delivered 2011.05.23737-8K5(W) RBS Aerospace Tui Travel 37258 CFM56-7B27B1 2011-05 Sold 2011.05.23737-8K5(W) Thomson Airways RBS Aerospace 37258 CFM56-7B27B1 2011-05 Leased 2011.05.23737-8GJ(W) Spicejet Boeing 37366 CFM56-7B24 2011-04 Delivered 2011.05.04737-8GJ(W) Wonkadell Boeing 37366 CFM56-7B24 2011-04 Sold 2011.05.04737-8GJ(W) Spicejet Wonkadell 37366 CFM56-7B24 2011-04 Leased 2011.05.04737-8GU(W) BLF Boeing 37552 CFM56-7B26 2011-04 Delivered 2011.05.26737-8GU(W) Utair Aviation BLF 37552 CFM56-7B26 2011-04 Leased 2011.05.26737-8GU(W) BLF Boeing 37553 CFM56-7B26 2011-04 Delivered 2011.05.31737-8GU(W) Utair Aviation BLF 37553 CFM56-7B26 2011-04 Leased 2011.05.31737-86N(W) GECAS Boeing 38019 CFM56-7B26 2011-04 Delivered 2011.05.11737-86N(W) Sc Air Boeing 38019 CFM56-7B26 2011-04 Sold 2011.05.11737-86N(W) Skymark Airlines Sc Air 38019 CFM56-7B26 2011-04 Leased 2011.05.11737-86N(W) GECAS Boeing 38020 CFM56-7B26 2011-04 Delivered 2011.05.10737-86N(W) Xiamen Airlines GECAS 38020 CFM56-7B26 2011-04 Leased 2011.05.10737-8Q8(W) ILFC Boeing 38820 CFM56-7B26 2011-04 Delivered 2011.05.24737-8Q8(W) Tuifl y ILFC 38820 CFM56-7B26 2011-04 Leased 2011.05.24737-81B(W) China Southern Boeing 38966 CFM56-7B26 2011-04 Delivered 2011.05.28737-8JP(W) NAS Boeing 39047 CFM56-7B26 2011-04 Delivered 2011.05.04737-8JP(W) Dy2 Leasing Boeing 39047 CFM56-7B26 2011-04 Sold 2011.05.04737-8JP(W) NAS Dy2 Leasing 39047 CFM56-7B26 2011-04 Leased 2011.05.04737-8K5(W) ACG Boeing 39094 CFM56-7B27B1 2011-04 Delivered 2011.05.17737-8K5(W) Tuifl y ACG 39094 CFM56-7B27B1 2011-04 Leased 2011.05.17737-87L(W) Shenzhen Airlines Boeing 39143 CFM56-7B26 2011-04 Delivered 2011.05.19737-87L(W) Shenzhen Airlines Boeing 39144 CFM56-7B26 2011-04 Delivered 2011.05.24737-84P(W) Hainan Airlines Boeing 39224 CFM56-7B26 2011-04 Delivered 2011.05.24737-8K2(W) Transavia Airlines Boeing 39259 CFM56-7B27/3 2011-04 Delivered 2011.05.19737-86N(W) GECAS Boeing 39404 CFM56-7B26 2011-04 Delivered 2011.05.05737-86N(W) Travel Service Airlines GECAS 39404 CFM56-7B26 2011-04 Leased 2011.05.05737-8BK(W) CIT Leasing Boeing 39443 CFM56-7B24 2011-04 Delivered 2011.05.26737-8BK(W) KLM CIT Leasing 39443 CFM56-7B24 2011-04 Leased 2011.05.26737-8KN(W) Flydubai Boeing 40245 CFM56-7B26 2011-04 Delivered 2011.05.11737-8KN(W) MCAPEurope Boeing 40245 CFM56-7B26 2011-04 Sold 2011.05.11737-8KN(W) Flydubai MCAPEurope 40245 CFM56-7B26 2011-04 Leased 2011.05.11737-82R(W) Pegasus Airlines Boeing 40722 CFM56-7B26 2011-04 Delivered 2011.05.05737-82R(W) Pegasus Airlines Boeing 40727 CFM56-7B26 2011-04 Delivered 2011.05.20737-82R(W) Pegasus Airlines GE Capital 40727 CFM56-7B26 2011-04 Sale-Leaseback 2011.05.20737-823(W) American Airlines Boeing 40762 CFM56-7B26 2011-04 Delivered 2011.05.24737-823(W) American Airlines Wilmington Trust 40762 CFM56-7B26 2011-04 Sale-Leaseback 2011.05.26737-8D6(W) Air Algerie Boeing 40863 CFM56-7B26 2011-05 Delivered 2011.05.26737-8JP(W) NAS Boeing 40869 CFM56-7B26 2011-04 Delivered 2011.05.23737-8JP(W) Dy2 Leasing Boeing 40869 CFM56-7B26 2011-04 Sold 2011.05.23737-8JP(W) NAS Dy2 Leasing 40869 CFM56-7B26 2011-04 Leased 2011.05.23







737-800(W) Mongolian Airlines Boeing -2 CFM56-7B26 2013-03 Ordered 2011.05.31737-8GK(W) Buraq Air Transport Boeing (-1) CFM56-7B24 - Cncl-Order 2011.05.01737-800(W) Unknown Boeing -1 CFM56-7B26 2012-09 Ordered 2011.05.02747-2U3B(F) Kalitta Air Wells Fargo 22769 JT9D-7Q 1982-04 Sold 2011.05.16747-256B(F) Kalitta Air Wells Fargo 24071 JT9D-7Q3 1988-03 Sold 2011.05.16747-446 Aersale Japan Airlines 25064 CF6-80C2B1F 1991-03 Sold 2011.05.30747-438 Max Air Qantas Airways 25067 RB211-524G 1991-05 Sold 2011.05.20747-446 Aersale Japan Airlines 26341 CF6-80C2B1F 1992-01 Sold 2011.05.30747-446 Transaero Airlines SB Leasing 27100 CF6-80C2B1F 1999-11 Leased 2011.05.11747-446 Wells Fargo Japan Airlines 29899 CF6-80C2B1F 1999-03 Sold 2011.05.17747-412 Wells Fargo Singapore Airlines 29950 PW4056 2000-01 Sold 2011.05.26747-412 Transaero Airlines Wells Fargo 29950 PW4056 2000-01 Leased 2011.05.26757-28A Thomson Airways Astraeus Airlines 24543 RB211-535E4 1990-01 Sub-Leased 2011.05.12757-21B SCAT ACG 25083 RB211-535E4 1991-03 Leased 2011.05.01757-2Q8(ETOPS) Thomson Airways Astraeus Airlines 25621 RB211-535E4 1992-04 Sub-Leased 2011.05.01757-2Q8(ETOPS) Astraeus Airlines Thomson Airways 25621 RB211-535E4 1992-04 Returned 2011.05.11757-2Y0 Icelandair United Nations 26151 RB211-535E4 1992-06 Returned 2011.05.20757-2Q8(W) Utair Aviation Castle 26268 PW2037 1993-11 Leased 2011.05.01757-2Q8(W) Air Transport Intl Cargo Aircraft Mgmt 26273 PW2037 1993-12 Leased 2011.05.01757-28A(ETOPS) Thomas Cook Mint Airways 26276 RB211-535E4 1996-02 Sub-Leased 2011.05.01757-28A North American Westjet 26277 RB211-535E4 1994-12 Returned 2011.05.01757-204(W) Thomson Airways Tuifl y Nordic 27219 RB211-535E4 1993-12 Returned 2011.05.16757-236 Federal Express British Airways 28666 RB211-535E4 1997-03 Sold 2011.05.31757-256(ETOPS) Towy Leasing RAK Airways 29311 RB211-535E4 2000-08 Returned 2011.05.01757-23N(ETOPS) United Nations Icelandair 30735 RB211-535E4-B 2000-05 Sub-Leased 2011.05.19767-266ER Executive Jet Congo Hewa Bora Airways 23178 JT9D-7R4E 1984-06 Sold 2011.05.19767-266ER Executive Executive Jet Congo 23178 JT9D-7R4E 1984-06 Sold 2011.05.19767-269ER Sunny Airways KMW Leasing 23280 JT9D-7R4E4 1985-11 Leased 2011.05.13767-2B1ER Aerousa Avianca 25421 PW4060 1991-11 Returned 2011.05.05767-224ER Omni Air Continental Airlines 30434 CF6-80C2B4F 2001-01 Leased 2011.05.19767-332 Delta Air Lines Wilmington Trust 25988 PW4060 1993-05 Lease-Buyout 2011.05.11767-31AER(W) Austrian Airlines Air Finance Amsterdam 25273 PW4060 1991-08 Lease-Buyout 2011.05.01767-33AER Msa I Martinair Holland 25535 PW4060 1993-03 Returned 2011.05.31767-328ER Nordwind Airlines Jb 27427 27427 CF6-80C2B6F 1995-04 Leased 2011.05.29767-3W0ER Air Lease China Eastern 28149 RB211-524H 1996-08 Sold 2011.05.24767-3W0ER Mongolian Airlines Air Lease 28149 RB211-524H 1996-08 Leased 2011.05.24767-3Q8ER Wilmington Trust ILFC 29383 CF6-80C2B6F 1999-03 Sold 2011.05.06767-3Q8ER Transaero Airlines Wilmington Trust 29383 CF6-80C2B6F 1999-03 Leased 2011.05.06767-3Z9ER(W) Austrian Airlines GE Capital 29867 PW4060 1998-11 Lease-Buyout 2011.05.01767-33AER Air Canada AWMS 33423 PW4060 2002-12 Leased 2011.05.18767-32LER Azerbaijan Airlines Boeing 40343 CF6-80C2B7F 2011-04 Delivered 2011.05.31767-316ER Lan Airlines Boeing -5 CF6-80C2B7F 2012-12 Ordered 2011.05.18767-316ER Lan Airlines Boeing [4] CF6-80C2B7F 2013-03 Optioned 2011.05.18767-300ER Mongolian Airlines Boeing -1 CF6-80C2B7F 2013-12 Ordered 2011.05.03777-222ER T7 Aviation US Bank 26943 PW4090 1997-07 Sold 2011.05.20777-222ER Omni Air T7 Aviation 26943 PW4090 1997-07 Leased 2011.05.20777-3B5ER Korean Air Lines Boeing 37647 GE90-115B 2011-04 Delivered 2011.05.18777-31HER Emirates Boeing 38985 GE90-115B 2011-03 Delivered 2011.05.05777-367ER Cathay Pacifi c Boeing 39233 GE90-115BL2 2011-04 Delivered 2011.05.27777-3FXER Etihad Airways Boeing 39681 GE90-115B 2011-04 Delivered 2011.05.18777-328ER Air France Boeing 39971 GE90-115B 2011-04 Delivered 2011.05.03777-323ER American Airlines Boeing -1 GE90-115B 2013-08 Ordered 2011.05.25777-3DZER Qatar Airways Boeing -4 GE90-115B 2013-06 Ordered 2011.05.27777-3M0ER Aerofl ot Airlines Boeing -8 GE90-115B 2015-08 Ordered 2011.05.11787-85C Xiamen Airlines Boeing -6 2014-07 Ordered 2011.05.01A300B4-622R Wells Fargo Wells Fargo 621 PW4158 1991-10 Sold 2011.05.23A300B4-622R Wells Fargo Wells Fargo 730 PW4158 1994-02 Sold 2011.05.16A310-304 Ariana Airlines Saga Airlines 562 CF6-80C2A2 1990-11 Sub-Leased 2011.05.01A310-324 Airbus Wilmington Trust 686 PW4152 1993-08 Sold 2011.05.31A318-111 Frontier Airlines Wells Fargo 1660 CFM56-5B8/P 2002-06 Sale-Leaseback 2011.05.04A318-111 Avianca Wells Fargo 2523 CFM56-5B8/P 2005-06 Leased 2011.05.05A318-111 Avianca Wells Fargo 2544 CFM56-5B8/P 2005-08 Leased 2011.05.23A318-121 Airbus Lan Airlines 3030 PW6122A 2007-08 Sold 2011.05.01A318-121 Oceanair Airbus 3030 PW6122A 2007-08 Leased 2011.05.02A318-121 Airbus Lan Airlines 3062 PW6122A 2007-10 Sold 2011.05.17A318-121 Oceanair Airbus 3062 PW6122A 2007-10 Leased 2011.05.17A318-121 Lan Airlines Lan Ecuador 3390 PW6122A 2008-02 Returned 2011.05.06A318-121 Lan Airlines Lan Ecuador 3438 PW6122A 2008-04 Returned 2011.05.13A319-112 TACA Wells Fargo 2066 CFM56-5B6/P 2003-10 Leased 2011.05.23A319-115 Hainan Airlines Beijing Airlines 2581 CFM56-5B7/P 2005-10 Returned 2011.05.12A319-115 Lucky Air Hainan Airlines 2581 CFM56-5B7/P 2005-10 Leased 2011.05.12A319-112 Eden Irish Karthago Airlines 3171 CFM56-5B6/P 2007-06 Returned 2011.05.13A319-112 ALS Irish Leasing Eden 3171 CFM56-5B6/P 2007-06 Sold 2011.05.13A319-112 Aircraft Portfolio Air Jamaica 3331 CFM56-5B6/3 2007-11 Returned 2011.05.13A319-112 Germania Airbus 4691 CFM56-5B6/3 2011-04 Delivered 2011.05.03A319-111 Easyjet Airbus 4693 CFM56-5B5/3 2011-04 Delivered 2011.05.03A319-132 Turk Hava Yollari Airbus 4695 V2524-A5 2011-04 Delivered 2011.05.05A319-111 Easyjet Airbus 4705 CFM56-5B5/3 2011-05 Delivered 2011.05.11A319-112 Csa Czech Airlines Airbus 4713 CFM56-5B6/3 2011-05 Delivered 2011.05.23A319-112 Csa Czech Airlines Eastwest Leasing 4713 CFM56-5B6/3 2011-05 Sale-Leaseback 2011.05.23A319-111 Easyjet Airbus 4717 CFM56-5B5/3 2011-05 Delivered 2011.05.26A319-132LR Aegean Airlines Olympic Air 1727 V2524-A5 2002-09 Sub-Leased 2011.05.01ACJ319-115 Qatar Amiri Flight Airbus 3994 CFM56-5B7/3 2009-08 Returned 2011.05.27A320-214 Vueling Airlines Iberia 1101 CFM56-5B4/P 1999-09 Leased 2011.05.01A320-214 Castletroy Leasing Air Berlin 1493 CFM56-5B4/P 2001-05 Returned 2011.05.02A320-214 Brussels Airlines Castletroy Leasing 1493 CFM56-5B4/P 2001-05 Leased 2011.05.02A320-214 ALC Rain I 1686 CFM56-5B4/P 2001-12 Sold 2011.05.01A320-214 Spring Airlines ALC 1686 CFM56-5B4/P 2001-12 Leased 2011.05.02A320-231 Travel Service Airlines Air Sweden 169 V2500-A1 1991-08 Sub-Leased 2011.05.01A320-211 Adria Airways Bayerischehausbau 191 CFM56-5A1 1991-03 Leased 2011.05.01







A320-214 Vueling Airlines Iberia 2104 CFM56-5B4/P 2003-09 Leased 2011.05.01A320-232 Air Caledonie Air New Zealand 2173 V2527-A5 2004-02 Sub-Leased 2011.05.01A320-232 Air New Zealand Air Caledonie 2173 V2527-A5 2004-02 Returned 2011.05.10A320-214 ILFC Thomson Airways 2180 CFM56-5B4/P 2004-02 Returned 2011.05.03A320-214 Holidays Airlines ILFC 2180 CFM56-5B4/P 2004-02 Leased 2011.05.03A320-212 Tor Air Bh-Air 294 CFM56-5A3 1992-01 Sub-Leased 2011.05.01A320-211 Solomon Airlines Pegasus Aviation 302 CFM56-5A1 1992-02 Leased 2011.05.20A320-211 Smartlynx Airlines Travel Service Airlines 311 CFM56-5A1 1992-03 Returned 2011.05.01A320-211 Small Planet Airlines Travel Service Airlines 311 CFM56-5A1 1992-03 Sub-Leased 2011.05.02A320-231 Orix Aviation Indian Airlines 327 V2500-A1 1992-04 Returned 2011.05.30A320-231 GMT Aircraft Leasing Indian Airlines 327 V2500-A1 1992-04 Returned 2011.05.30A320-214 Travel Service Airlines Nouvelair Tunisie 3480 CFM56-5B4/3 2008-04 Sub-Leased 2011.05.05A320-232 Volaris Amentum Aircraft 3524 V2527-A5 2008-06 Leased 2011.05.23A320-211 Travel Service Airlines Smartlynx Airlines 359 CFM56-5A1 1992-08 Sub-Leased 2011.05.25A320-231 Ata Airlines Khors Air 362 V2500-A1 1992-09 Sub-Leased 2011.05.01A320-214 Whitney Leasing ILFC 3907 CFM56-5B4/3 2009-05 Sold 2011.05.19A320-232 Aegean Airlines Olympic Air 3990 V2527-A5 2009-08 Sub-Leased 2011.05.01A320-214 Kam Air Bahrain Air 4055 CFM56-5B4/3 2009-09 Sub-Leased 2011.05.01A320-232 Aegean Airlines Olympic Air 4065 V2527-A5 2009-10 Sub-Leased 2011.05.01A320-231 Viking Hellas Wells Fargo 415 V2500-A1 1994-01 Leased 2011.05.31ACJ320-214 Continent Aircraft Air Luther 4199 CFM56-5B4/3 2010-01 Returned 2011.05.02ACJ320-214 Air Luther Aircraft Guaranty 4199 CFM56-5B4/3 2010-01 Sold 2011.05.02ACJ320-214 Comlux Malta Air Luther 4199 CFM56-5B4/3 2010-01 Sold 2011.05.03A320-212 Strategic Airlines Aeroturbine 436 CFM56-5A3 1993-06 Leased 2011.05.18A320-231 Kellstrom Triton Aviation 443 V2500-A1 1993-08 Sold 2011.05.01A320-233 Lan Ecuador Lan Airlines 4439 V2527E-A5 2010-09 Sub-Leased 2011.05.04A320-233 Lan Ecuador Lan Airlines 4476 V2527E-A5 2010-10 Sub-Leased 2011.05.10A320-232 Lan Ecuador Lan Airlines 4509 V2527-A5 2010-10 Sub-Leased 2011.05.17A320-232 Aerdragon Aviation Airbus 4575 V2527-A5 2011-04 Delivered 2011.05.18A320-232 Sichuan Airlines Aerdragon Aviation 4575 V2527-A5 2011-04 Leased 2011.05.18A320-214 BOC Aviation Airbus 4684 CFM56-5B4/3 2011-04 Delivered 2011.05.03A320-214 Aerofl ot Airlines BOC Aviation 4684 CFM56-5B4/3 2011-04 Leased 2011.05.03A320-232 Aerventure Airbus 4686 V2527-A5 2011-04 Delivered 2011.05.10A320-232 Hainan Airlines Aerventure 4686 V2527-A5 2011-04 Leased 2011.05.10A320-232 China West Air Airbus 4686 V2527-A5 2011-04 Sub-Leased 2011.05.10A320-214 ACG Airbus 4688 CFM56-5B4/3 2011-04 Delivered 2011.05.10A320-214 Bank Of Utah Airbus 4688 CFM56-5B4/3 2011-04 Sold 2011.05.10A320-214 Frontier Airlines Bank Of Utah 4688 CFM56-5B4/3 2011-04 Leased 2011.05.10A320-214 Tunis Air Airbus 4689 CFM56-5B4/3 2011-04 Delivered 2011.05.06A320-232 Yemenia Airbus 4690 V2527-A5 2011-04 Delivered 2011.05.30A320-214 BOC Aviation Airbus 4692 CFM56-5B4/3 2011-04 Delivered 2011.05.12A320-214 Aerofl ot Airlines BOC Aviation 4692 CFM56-5B4/3 2011-04 Leased 2011.05.12A320-214 Air Lease Airbus 4694 CFM56-5B4/3 2011-04 Delivered 2011.05.17A320-214 Srilankan Airlines Air Lease 4694 CFM56-5B4/3 2011-04 Leased 2011.05.17A320-232 China Southern Airbus 4696 V2527-A5 2011-04 Delivered 2011.05.18A320-232 Lan Airlines Airbus 4697 V2527-A5 2011-04 Delivered 2011.05.06A320-232 Lan Airlines Bandurria Leasing 4697 V2527-A5 2011-04 Sale-Leaseback 2011.05.06A320-214 GECAS Airbus 4699 CFM56-5B4/3 2011-04 Delivered 2011.05.20A320-214 Celestial Aviation Airbus 4699 CFM56-5B4/3 2011-04 Sold 2011.05.20A320-214 Holidays Airlines Celestial Aviation 4699 CFM56-5B4/3 2011-04 Leased 2011.05.20A320-232 Qatar Airways Airbus 4700 V2527-A5 2011-04 Delivered 2011.05.25A320-233 Silkair Airbus 4701 V2527E-A5 2011-05 Delivered 2011.05.12A320-214 Frontier Airlines Airbus 4704 CFM56-5B4/3 2011-04 Delivered 2011.05.19A320-214 Bank Of Utah Airbus 4704 CFM56-5B4/3 2011-04 Sold 2011.05.19A320-214 Frontier Airlines Bank Of Utah 4704 CFM56-5B4/3 2011-04 Leased 2011.05.19A320-214 Easyjet Airbus 4708 CFM56-5B4/3 2011-05 Delivered 2011.05.06A320-214 China Eastern Airbus 4709 CFM56-5B4/3 2011-05 Delivered 2011.05.23A320-214 GECAS Airbus 4712 CFM56-5B4/3 2011-04 Delivered 2011.05.26A320-214 Aerofl ot Airlines GECAS 4712 CFM56-5B4/3 2011-04 Leased 2011.05.26A320-214 Air France Airbus 4714 CFM56-5B4/3 2011-05 Delivered 2011.05.26A320-214 Air France Emscote Aviation 4714 CFM56-5B4/3 2011-05 Sale-Leaseback 2011.05.26A320-214 Aer Lingus Airbus 4715 CFM56-5B4/3 2011-05 Delivered 2011.05.24A320-232 Wizz Air Hungary Airbus 4716 V2527-A5 2011-05 Delivered 2011.05.26A320-214 China Eastern Airbus 4718 CFM56-5B4/3 2011-05 Delivered 2011.05.31A320-214 AWAS Airbus 4720 CFM56-5B4/3 2011-05 Delivered 2011.05.31A320-214 Zen Nikku Leasing Airbus 4720 CFM56-5B4/3 2011-05 Sold 2011.05.31A320-214 Star Flyer Zen Nikku Leasing 4720 CFM56-5B4/3 2011-05 Leased 2011.05.31A320-214 Easyjet Airbus 4721 CFM56-5B4/3 2011-05 Delivered 2011.05.20A320-214 China Eastern Airbus 4723 CFM56-5B4/3 2011-05 Delivered 2011.05.31A320-214 Uzbekistan Airways Airbus 4724 CFM56-5B4/3 2011-05 Delivered 2011.05.26A320-232 Shenzhen Airlines Airbus 4726 V2527-A5 2011-05 Delivered 2011.05.27A320-232 ILFC Atlasjet Intl 640 V2527-A5 1996-11 Returned 2011.05.01A320-232 Onur Air ILFC 640 V2527-A5 1996-11 Leased 2011.05.01A320-232 Aircastle Lotus Airline 667 V2527-A5 1997-02 Returned 2011.05.10A320-232 Atlasjet Intl Anadolujet 676 V2527-A5 1997-03 Returned 2011.05.01A320-232 ILFC Anadolujet 676 V2527-A5 1997-03 Returned 2011.05.01A320-232 Onur Air ILFC 676 V2527-A5 1997-03 Leased 2011.05.01A320-214 Interjet [Mexico] Wells Fargo 707 CFM56-5B4/P 1997-06 Leased 2011.05.25A320-214 GECAS Air China 724 CFM56-5B4/P 1997-09 Returned 2011.05.01A320-214 Smartlynx Airlines GECAS 724 CFM56-5B4/P 1997-09 Leased 2011.05.02A320-211 ILFC Smartlynx Airlines 726 CFM56-5A1 1997-10 Returned 2011.05.01A320-233 Aircastle Lotus Airline 739 V2527E-A5 1997-10 Returned 2011.05.11A320-233 Aircastle Lotus Airline 743 V2527E-A5 1997-10 Returned 2011.05.11A320-232 ILFC Airblue 760 V2527-A5 1997-11 Returned 2011.05.31A320-212 Travel Service Airlines Nouvelair Tunisie 793 CFM56-5A3 1998-02 Sub-Leased 2011.05.01A320-214 B&B Air Funding Aigle Azur 888 CFM56-5B4/P 1998-09 Returned 2011.05.16A320-214 Hello Wells Fargo 888 CFM56-5B4/P 1998-09 Leased 2011.05.16A320-214 Star Flyer Airbus -2 CFM56-5B4/3 2013-06 Ordered 2011.05.09A321-211 Solaris Airlines ILFC 1905 CFM56-5B3/P 2003-01 Leased 2011.05.10A321-231 Turk Hava Yollari Airbus 4698 V2533-A5 2011-04 Delivered 2011.05.11







A321-231 Vietnam Airlines Airbus 4703 V2533-A5 2011-05 Delivered 2011.05.19A321-232 Turk Hava Yollari Airbus 4706 V2530-A5 2011-04 Delivered 2011.05.18A321-231 Lufthansa Airbus 4710 V2533-A5 2011-05 Delivered 2011.05.18A321-232 Air China Airbus 4719 V2530-A5 2011-05 Delivered 2011.05.27A321-211 Air Berlin Airbus 4728 CFM56-5B3/3 2011-05 Delivered 2011.05.31A321-231 PK Airfi nance Gaif Ii 792 V2533-A5 1998-02 Sold 2011.05.20A330-243 Air Lease Aercap 1138 TRENT772C-60 2010-07 Sold 2011.05.01A330-243 Sichuan Airlines Air Lease 1138 TRENT772C-60 2010-07 Leased 2011.05.02A330-223 Tam Linhas Aereas Airbus 1221 PW4170 2011-04 Delivered 2011.05.11A330-243 Aircastle Advisor Airbus 1223 TRENT772B-60 2011-04 Delivered 2011.05.06A330-243 South African Airways Aircastle Advisor 1223 TRENT772B-60 2011-04 Leased 2011.05.06A330-243 Avianca Airbus 1224 TRENT772B-60 2011-05 Delivered 2011.05.19A330-243 Wells Fargo Airbus 1224 TRENT772B-60 2011-05 Sold 2011.05.19A330-243 Avianca Wells Fargo 1224 TRENT772B-60 2011-05 Leased 2011.05.19A330-202 Air Lease Airbus 1225 CF6-80E1A4B 2011-04 Delivered 2011.05.19A330-202 ALC Shamrock Airbus 1225 CF6-80E1A4B 2011-04 Sold 2011.05.19A330-202 Alitalia ALC Shamrock 1225 CF6-80E1A4B 2011-04 Leased 2011.05.19A330-243 Oman Air Airbus 1227 TRENT772B-60 2011-05 Delivered 2011.05.25A330-243 Air Europa Whitney 597 TRENT772B-60 2004-05 Leased 2011.05.23A330-223(HGW) Korean Air Lines Airbus -5 PW4170 2013-06 Ordered 2011.05.03A330-343E Etihad Airways Airbus 1205 TRENT772B-60 2011-05 Delivered 2011.05.31A330-323E MAS Airbus 1219 PW4168A 2011-04 Delivered 2011.05.04A330-342E Cathay Pacifi c Airbus 1222 TRENT772-60 2011-05 Delivered 2011.05.13A330-343E Turk Hava Yollari Airbus 1228 TRENT772B-60 2011-05 Delivered 2011.05.16A340-312 Squadron Leasing Gulf Air 133 CFM56-5C3/F 1996-11 Sold 2011.05.27A340-313X Hi Fly Adagold Aviation 450 CFM56-5C4 2002-01 Returned 2011.05.26A380-861 Korean Air Lines Airbus 35 GP7270 2010-11 Delivered 2011.05.31A380-861 Air France Airbus 52 GP7270 2010-08 Delivered 2011.05.17A380-861 Air France Ds-Rendite-Fonds 52 GP7270 2010-08 Sale-Leaseback 2011.05.17A380-841 Lufthansa Airbus 69 TRENT970-84 2010-11 Delivered 2011.05.04

JUNE717-2cm Hawaiian Airlines Wells Fargo 55001 BR715a1-30 1998-10 Lease-Buyout 2011.06.28717-2cm Hawaiian Airlines Wells Fargo 55002 BR715a1-30 1998-12 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55118 BR715a1-30 2001-02 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55121 BR715a1-30 2001-01 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55122 BR715a1-30 2001-04 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55123 BR715a1-30 2001-05 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55124 BR715a1-30 2001-06 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55125 BR715a1-30 2001-06 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55126 BR715a1-30 2001-07 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55128 BR715a1-30 2001-08 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55129 BR715a1-30 2001-08 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55130 BR715a1-30 2001-10 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55131 BR715a1-30 2001-11 Lease-Buyout 2011.06.28717-22a Hawaiian Airlines Wells Fargo 55132 BR715a1-30 2001-10 Lease-Buyout 2011.06.28717-2cm Hawaiian Airlines Wells Fargo 55151 BR715a1-30 2000-09 Lease-Buyout 2011.06.28737-291 Jet Care Corporation San Jose Sharks 21508 JT8d-9a 1978-04 Sold 2011.06.17737-217 Unknown PALS 22256 JT8d-17 1980-05 Leased 2011.06.23737-291 Aircraft Guaranty Corp Sindie, Christian 22384 JT8d-17 1980-10 Sold 2011.06.24737-2v6 Sarab Blair Investors 22431 JT8d-15a 1981-09 Sold 2011.06.05737-2v6 Jet Connections Sarab 22431 JT8d-15a 1981-09 Leased 2011.06.18737-247 Bradley Air Services Celtic Capital 23521 JT8d-15a 1987-01 Sold 2011.06.10737-3h4 Frontiers Of Flight Museum Southwest Airlines 22940 CFM56-3b1 1984-07 Sold 2011.06.14737-3t0(W) Grandmax Group As & L 23371 CFM56-3b1 1985-12 Sold 2011.06.03737-3t0(W) Orient Thai Airlines Grandmax Group 23371 CFM56-3b1 1985-12 Leased 2011.06.03737-3t0(W) Orient Thai Airlines As & L 23375 CFM56-3b1 1986-02 Leased 2011.06.01737-33a Alba Star RPK Capital 23628 CFM56-3b1 1986-10 Leased 2011.06.01737-3g7 Desert Rainier Us Airways 23776 CFM56-3b1 1987-06 Returned 2011.06.04737-3g7 Wells Fargo Wells Fargo 23776 CFM56-3b1 1987-06 Sold 2011.06.21737-3g7 Wells Fargo Wells Fargo 23777 CFM56-3b1 1987-06 Sold 2011.06.16737-382 Airexplore Triton Aviation 24365 CFM56-3b2 1989-02 Leased 2011.06.09737-3l9 Vista Georgia Galaxy Aviation 25125 CFM56-3b2 1991-05 Leased 2011.06.25737-3l9 GE Capital Corp Norwegian Air Shuttle 27336 CFM56-3c1 1994-02 Returned 2011.06.29737-31s Small Planet Airlines Small Planet Airlines 29055 CFM56-3c1 1997-07 Leased 2011.06.30737-4k5 Alba Star Wells Fargo 24130 CFM56-3c1 1990-02 Leased 2011.06.17737-42c East Ireland Wells Fargo 24813 CFM56-3c1 1991-05 Sold 2011.06.02737-42c Central Connect Airlines East Ireland 24813 CFM56-3c1 1991-05 Leased 2011.06.02737-484 Aersale Aersale 25314 CFM56-3c1 1991-08 Sold 2011.06.23737-484 Blue Air-Transport Aersale 25314 CFM56-3c1 1991-08 Leased 2011.06.30737-484 Air Manas Bank Of Utah 25361 CFM56-3c1 1991-08 Leased 2011.06.23737-4q8 Tombo Aviation Merpati Nusantara 26280 CFM56-3c1 1992-02 Returned 2011.06.15737-48e Blue Bird Airways ILFC 27632 CFM56-3c1 1997-01 Leased 2011.06.07737-548(W) Goiania Comercio Barkham Associates 24968 CFM56-3b1 1990-11 Sold 2011.06.02737-548(W) Aerosvit Airlines Goiania Comercio 24968 CFM56-3b1 1990-11 Leased 2011.06.02737-55d Ukraine Intl Airlines Celestial Aviation 27418 CFM56-3c1 1992-10 Leased 2011.06.11737-524(W) Continental Airlines Wells Fargo 28900 CFM56-3c1 1997-07 Lease-Buyout 2011.06.03737-524(W) Wells Fargo Continental Airlines 28900 CFM56-3c1 1997-07 Sold 2011.06.10737-524(W) Utair Aviation Wells Fargo 28913 CFM56-3c1 1997-12 Leased 2011.06.27737-76n Hainan Airlines Lucky Air 28582 CFM56-7b24 1998-10 Returned 2011.06.21737-76n Hainan Airlines Lucky Air 28585 CFM56-7b24 1998-11 Returned 2011.06.21737-76q(W) Boullioun Aircraft Air Berlin 30271 CFM56-7b24 2000-12 Returned 2011.06.15737-76q(W) Yakutia Airlines Boullioun Aircraft 30271 CFM56-7b24 2000-12 Leased 2011.06.16737-76q(W) Yakutia Airlines Rain I 30277 CFM56-7b24 2001-08 Leased 2011.06.05737-73v BOC Aviation BOC Aviation 32426 CFM56-7b20 2004-03 Sold 2011.06.15737-73v Jet Lite BOC Aviation 32426 CFM56-7b20 2004-03 Leased 2011.06.15737-7h4(W) Southwest Airlines Boeing 36674 CFM56-7b24 2011-06 Delivered 2011.06.29737-7eh(W) Gol Transportes Aereos Boeing 37608 CFM56-7b24 2011-05 Delivered 2011.06.23737-7k2(W) KLM Boeing 39256 CFM56-7b22/3 2011-05 Delivered 2011.06.22737-7bc(W) F & L Aviation Boeing 30327 CFM56-7b26 1999-08 Sold 2011.06.09







737-7bc(W) Frank & Victoria Fertitta F & L Aviation 30327 CFM56-7b26 1999-08 Leased 2011.06.09737-7afc(W) United States Navy Boeing 40577 CFM56-7b20 2011-05 Delivered 2011.06.24737-86j(W) ACG Saga Airlines 28068 CFM56-7b26 1998-02 Returned 2011.06.09737-8q8(W) ILFC Yemenia 28252 CFM56-7b26 2002-07 Returned 2011.06.02737-8q8(W) Caribbean Airlines ILFC 28252 CFM56-7b26 2002-07 Leased 2011.06.03737-8q8(W) Air Jamaica ILFC 28252 CFM56-7b26 2002-07 Sub-Leased 2011.06.03737-82r Jeju Air ILFC 29344 CFM56-7b26 2001-04 Leased 2011.06.16737-8k5(W) Bil Aircraftleasing TUIfl y 30414 CFM56-7b27 2000-10 Returned 2011.06.27737-83n(WEtops) Unknown ILFC 30706 CFM56-7b27b1 2001-08 Sold 2011.06.10737-83n(WEtops) Aeromexico Unknown 30706 CFM56-7b27b1 2001-08 Leased 2011.06.16737-8q8(W) ILFC Yemenia 30730 CFM56-7b27 2007-09 Returned 2011.06.30737-86n(W) Xl Airways France Celestial Aviation 32736 CFM56-7b26 2002-03 Leased 2011.06.08737-8q8(W) RAK Airways Midwest Airlines 32841 CFM56-7b27 2005-04 Sub-Leased 2011.06.01737-881(W) ANA Boeing 33911 CFM56-7b26 2011-05 Delivered 2011.06.21737-838(W) OAS Australia Macquarie 34180 CFM56-7b24 2005-10 Transferred 2011.06.01737-838(W) Qantas Airways OAS Australia 34180 CFM56-7b24 2005-10 Leased 2011.06.01737-838(W) OAS Australia Macquarie 34181 CFM56-7b24 2005-12 Transferred 2011.06.01737-838(W) Qantas Airways OAS Australia 34181 CFM56-7b24 2005-12 Leased 2011.06.01737-838(W) OAS Australia Macquarie 34182 CFM56-7b24 2005-12 Transferred 2011.06.01737-838(W) Qantas Airways OAS Australia 34182 CFM56-7b24 2005-12 Leased 2011.06.01737-838(W) OAS Australia Macquarie 34183 CFM56-7b24 2005-12 Transferred 2011.06.01737-838(W) Qantas Airways OAS Australia 34183 CFM56-7b24 2005-12 Leased 2011.06.01737-838(W) OAS Australia Macquarie 34184 CFM56-7b24 2006-01 Transferred 2011.06.01737-838(W) Qantas Airways OAS Australia 34184 CFM56-7b24 2006-01 Leased 2011.06.01737-838(W) Qantas Airways Boeing 34190 CFM56-7b24 2011-05 Delivered 2011.06.22737-838(W) Jetconnect Qantas Airways 34190 CFM56-7b24 2011-05 Leased 2011.06.22737-8kn(W) Corendon Airlines Flydubai 35794 CFM56-7b26 2009-01 Leased 2011.06.03737-8eh(W) Gol Transportes Aereos Boeing 35843 CFM56-7b27 2011-05 Delivered 2011.06.09737-8eh(W) Transavia Airlines Gol Transportes Aereos 36596 CFM56-7b27 2010-01 Leased 2011.06.27737-86j(W) Air Berlin Boeing 36880 CFM56-7b26 2011-05 Delivered 2011.06.21737-86j(W) Air Berlin Boeing 36881 CFM56-7b26 2011-05 Delivered 2011.06.08737-8k5(W) TUI Travel Boeing 37259 CFM56-7b27b1 2011-05 Delivered 2011.06.13737-8k5(W) RBS Aerospace Boeing Company 37259 CFM56-7b27b1 2011-05 Sold 2011.06.13737-8k5(W) TUIfl y Nordic RBS Aerospace 37259 CFM56-7b27b1 2011-05 Leased 2011.06.13737-8k5(W) TUI Travel Boeing 37260 CFM56-7b27b1 2011-06 Delivered 2011.06.24737-8k5(W) Jetairfl y TUI Travel 37260 CFM56-7b27b1 2011-06 Leased 2011.06.24737-86j(W) RBS Aerospace Air Berlin 37747 CFM56-7b26 2009-11 Sold 2011.06.12737-86j(W) Airline Taimyr RBS Aerospace 37747 CFM56-7b26 2009-11 Leased 2011.06.12737-86n(W) GE Capital Boeing 38021 CFM56-7b26 2011-05 Delivered 2011.06.17737-86n(W) China Eastern Airlines GE Capital 38021 CFM56-7b26 2011-05 Leased 2011.06.17737-86n(W) China United Airlines Boeing Company 38021 CFM56-7b26 2011-05 Sub-Leased 2011.06.17737-86n(W) GE Capital Boeing 38022 CFM56-7b26 2011-05 Delivered 2011.06.10737-86n(W) Xiamen Airlines GE Capital 38022 CFM56-7b26 2011-05 Leased 2011.06.10737-8u3(W) ILFC Boeing 38821 CFM56-7b26 2011-05 Delivered 2011.06.21737-8u3(W) Garuda Indonesian ILFC 38821 CFM56-7b26 2011-05 Leased 2011.06.21737-8jp(W) Norwegian Air Shuttle Boeing 39007 CFM56-7b26 2011-05 Delivered 2011.06.07737-8jp(W) Norwegian Air Shuttle Boeing 39048 CFM56-7b26 2011-06 Delivered 2011.06.22737-87l(W) Shenzhen Airlines Boeing 39145 CFM56-7b26 2011-05 Delivered 2011.06.09737-8fz(W) Babcock & Brown Boeing 39320 CFM56-7b26 2011-06 Delivered 2011.06.28737-8fz(W) MAS Babcock & Brown 39320 CFM56-7b26 2011-06 Leased 2011.06.28737-8fz(W) Flyfi refl y Boeing Company 39320 CFM56-7b26 2011-06 Sub-Leased 2011.06.28737-86n(W) GE Capital Boeing 39403 CFM56-7b26 2011-05 Delivered 2011.06.15737-86n(W) Garuda Indonesian GE Capital 39403 CFM56-7b26 2011-05 Leased 2011.06.15737-81d(W) AWAS Boeing 39415 CFM56-7b26 2011-05 Delivered 2011.06.21737-81d(W) Skynet Asia Airways AWAS 39415 CFM56-7b26 2011-05 Leased 2011.06.21737-82r(W) Pegasus Airlines Boeing 40011 CFM56-7b26 2011-05 Delivered 2011.06.06737-89l(W) Air China Boeing 40027 CFM56-7b26 2011-05 Delivered 2011.06.13737-8kn(W) Avolon GE Capital 40234 CFM56-7b26 2009-06 Sold 2011.06.01737-8kn(W) Virgin Australia Airlines Avolon 40234 CFM56-7b26 2009-06 Leased 2011.06.02737-8kn(W) Flydubai Boeing 40246 CFM56-7b26 2011-05 Delivered 2011.06.03737-8kn(W) Avolon Flydubai 40246 CFM56-7b26 2011-05 Sold 2011.06.03737-8kn(W) Virgin Australia Airlines Avolon 40246 CFM56-7b26 2011-05 Leased 2011.06.03737-846(W) Japan Airlines Boeing 40354 CFM56-7b24 2011-06 Delivered 2011.06.27737-823(W) American Airlines Boeing 40763 CFM56-7b26 2011-05 Delivered 2011.06.09737-823(W) American Airlines Wilmington Trust 40763 CFM56-7b26 2011-05 Sale-Leaseback 2011.06.13737-866(W) Egyptair Boeing 40800 CFM56-7b26 2011-05 Delivered 2011.06.15737-8jp(W) Norwegian Air Shuttle Boeing 40870 CFM56-7b26 2011-05 Delivered 2011.06.06737-8fe(W) Virgin Australia Airlines Boeing 40994 CFM56-7b26 2011-05 Delivered 2011.06.08737-8fe(W) Virgin Australia Airlines Avolon 40994 CFM56-7b26 2011-05 Sale-Leaseback 2011.06.08737-8fe(W) Virgin Australia Airlines Boeing 40995 CFM56-7b26 2011-05 Delivered 2011.06.20737-8fe(W) RBS Aerospace Boeing 40995 CFM56-7b26 2011-05 Sold 2011.06.20737-8fe(W) Virgin Australia Airlines RBS Aerospace 40995 CFM56-7b26 2011-05 Leased 2011.06.20737-800(W) ALC Boeing (6) CFM56-7b24 2017-06 Ordered 2011.06.01737-8jp(W) Norwegian Air Shuttle Boeing (15) CFM56-7b26 2015-02 Ordered 2011.06.01737-800(W) Mongolian Airlines Boeing (2) CFM56-7b26 2013-03 Ordered 2011.06.01737-9gper(W) Lion Air Boeing 37282 CFM56-7b27 2011-05 Delivered 2011.06.07737-9b5er(W) Korean Air Lines Boeing 37633 CFM56-7b27 2011-04 Delivered 2011.06.14737-9b5er(W) Korean Air Lines Boeing 37634 CFM56-7b27 2011-05 Delivered 2011.06.28747-338 Unknown Bank Of Utah 23408 RB211-524d4-19 1986-03 Leased 2011.06.22747-446 Aersale Japan Airlines 26342 CF6-80c2b1f 1992-02 Sold 2011.06.29747-446 Aersale Aersale 26346 CF6-80c2b1f 1991-12 Sold 2011.06.14747-446 Pullmantur Air Aersale 26346 CF6-80c2b1f 1991-12 Leased 2011.06.16747-4f6 ILFC Air New Zealand 27602 CF6-80c2b1f 1998-05 Returned 2011.06.30747-446 Wells Fargo Japan Airlines 27650 CF6-80c2b1f 1999-10 Sold 2011.06.23747-8 Unknown Boeing (2) GENX-2b67 2014-10 Ordered 2011.06.01757-2j4(W) Trump Group Tag Air 25155 RB211-535e4 1991-04 Sub-Leased 2011.06.01757-21b ACG China Southern Airlines 25258 RB211-535e4 1991-07 Returned 2011.06.24757-2k2(W) Icelandair Air Finland 26330 RB211-535e4 1996-05 Sub-Leased 2011.06.11757-28a(Etops) Astraeus Airlines British Midland 28161 RB211-535e4 1996-07 Returned 2011.06.04757-256(Etops) Icelandair Towy Leasing 29311 RB211-535e4 2000-08 Leased 2011.06.10







767-231 Wells Fargo DHL 22566 JT9d-7r4d 1982-09 Transferred 2011.06.13767-231 ABX Air Wells Fargo 22566 JT9d-7r4d 1982-09 Leased 2011.06.13767-231 Wells Fargo DHL 22570 JT9d-7r4d 1983-06 Transferred 2011.06.13767-231 ABX Air Wells Fargo 22570 JT9d-7r4d 1983-06 Leased 2011.06.13767-231 Wells Fargo DHL 22571 JT9d-7r4d 1983-06 Transferred 2011.06.13767-231 ABX Air Wells Fargo 22571 JT9d-7r4d 1983-06 Leased 2011.06.13767-231 Wells Fargo DHL 22572 JT9d-7r4d 1983-06 Transferred 2011.06.13767-231 ABX Air Wells Fargo 22572 JT9d-7r4d 1983-06 Leased 2011.06.13767-205 Wells Fargo DHL 23058 JT9d-7r4d 1984-08 Transferred 2011.06.13767-205 ABX Air Wells Fargo 23058 JT9d-7r4d 1984-08 Leased 2011.06.13767-338er Cargo Aircraft Mgmt Qantas Airways 24316 CF6-80c2b6 1988-09 Sold 2011.06.28767-383er Pegasus Aviation Avianca 24357 PW4060 1989-03 Returned 2011.06.14767-319er North American Castle 24876 CF6-80c2b6 1992-01 Leased 2011.06.08767-338er Qantas Airways TJT Leasing 24930 CF6-80c2b6 1990-11 Lease-Buyout 2011.06.23767-383er Muzun Leasing One Air Madagascar 25088 PW4062-3 1991-02 Returned 2011.06.30767-38eer Guggenheim Gol Transportes Aereos 25132 CF6-80c2b6f 1992-01 Returned 2011.06.30767-38eer Atlas Air Wells Fargo 25132 CF6-80c2b6f 1992-01 Sold 2011.06.30767-338er Qantas Airways Ril Aviation 25316 CF6-80c2b6 1991-09 Lease-Buyout 2011.06.23767-3y0er Sunwing Airlines Euro Atlantic Airways 25411 PW4060 1991-11 Sub-Leased 2011.06.14767-3y0er Sunwing Airlines Euro Atlantic Airways 26208 PW4060 1993-06 Sub-Leased 2011.06.14767-306er Wilmington Trust North American 28098 CF6-80c2b6f 1996-02 Returned 2011.06.22767-306er Nordwind Airlines Wilmington Trust 28098 CF6-80c2b6f 1996-02 Leased 2011.06.23767-343er Condor GECAS Technical 30009 CF6-80c2b6f 1999-03 Leased 2011.06.01767-316er(W) LAN Ecuador LAN Airlines 35696 CF6-80c2b7f 2008-05 Leased 2011.06.09767-300er Mongolian Airlines Boeing (1) Unknown 2014-02 Ordered 2011.06.01767-34af UPS Boeing 37866 CF6-80c2b7f 2011-05 Delivered 2011.06.08767-34af UPS Boeing 37867 CF6-80c2b7f 2011-06 Delivered 2011.06.29777-F6n GE Capital Boeing 37716 GE90-110b1l 2011-06 Delivered 2011.06.27777-F6n China Cargo Airlines GE Capital 37716 GE90-110b1l 2011-06 Leased 2011.06.27777-Fs2 Federal Express Boeing 37729 GE90-110b1l 2011-05 Delivered 2011.06.03777-Ffx Etihad Airways Boeing 39682 GE90-110b1l 2011-05 Delivered 2011.06.21777-F1b China Southern Airlines Boeing (6) GE90-110b1l 2012-02 Ordered 2011.06.01777-2fblr Boeing Business Jets Boeing 40668 GE90-110b1l 2011-05 Delivered 2011.06.17777-2fblr Ceiba Intercontinental Boeing Company 40668 GE90-110b1l 2011-05 Sold 2011.06.17777-3b5er Korean Air Lines Boeing 37648 GE90-115b 2011-05 Delivered 2011.06.07777-367er Cathay Pacifi c Boeing 37901 GE90-115bl2 2011-05 Delivered 2011.06.24777-3f2er Turk Hava Yollari Boeing 40795 GE90-115b 2011-05 Delivered 2011.06.24777-3m2er Taag Angola Airlines Boeing 40805 GE90-115b 2011-05 Delivered 2011.06.14A300b4-622r Wells Fargo Japan Airlines 703 PW4158 1993-06 Sold 2011.06.06A318-111 Avianca Wells Fargo 2552 CFM56-5b8/P 2005-08 Leased 2011.06.06A318-111 Avianca Wells Fargo 2575 CFM56-5b8/P 2005-09 Leased 2011.06.24A318-121 Oceanair LAN Airlines 3214 PW6122a 2007-12 Sold 2011.06.14A319-112 Constitution Aircraft Wells Fargo 1124 CFM56-5b6/2p 1999-10 Sold 2011.06.14A319-112 Atlasjet International Constitution Aircraft 1124 CFM56-5b6/2p 1999-10 Leased 2011.06.14A319-112 Hainan Airlines Beijing Capital Airlines 2617 CFM56-5b6/P 2005-11 Returned 2011.06.15A319-112 Lucky Air Hainan Airlines 2617 CFM56-5b6/P 2005-11 Leased 2011.06.15A319-111 RBS Aerospace Iberia 3169 CFM56-5b5/P 2007-06 Returned 2011.06.30A319-112 ALS ALS 3171 CFM56-5b6/P 2007-06 Sold 2011.06.29A319-112 Tatarstan Airlines ALS Bermuda 3171 CFM56-5b6/P 2007-06 Leased 2011.06.29A319-112 Flynext Germania 3589 CFM56-5b6/3 2008-07 Sub-Leased 2011.06.01A319-112 Germania Germania 3589 CFM56-5b6/3 2008-07 Sub-Leased 2011.06.01A319-112 Flynext Germania 3818 CFM56-5b6/3 2009-02 Sub-Leased 2011.06.01A319-112 Germania Germania 3818 CFM56-5b6/3 2009-02 Sub-Leased 2011.06.01A319-112 Tam Linhas Aereas Airbus 4734 CFM56-5b6/3 2011-05 Delivered 2011.06.07A319-111 Easyjet Airbus 4744 CFM56-5b5/3 2011-05 Delivered 2011.06.09A319-132 Turk Hava Yollari Airbus 4755 V2524-A5 2011-06 Delivered 2011.06.22A319-111 Aircraft Purchase Fleet Airbus 4759 CFM56-5b5/3 2011-06 Delivered 2011.06.29A319-111 Herodias Airbus 4759 CFM56-5b5/3 2011-06 Sold 2011.06.29A319-111 Alitalia Herodias 4759 CFM56-5b5/3 2011-06 Leased 2011.06.29A319-115 Tibet Airlines Airbus 4766 CFM56-5b7/3 2011-06 Delivered 2011.06.26A320-214 ILFC Iberia 1087 CFM56-5b4/P 1999-09 Returned 2011.06.01A320-214 BH-Air ILFC 1087 CFM56-5b4/P 1999-09 Leased 2011.06.02A320-211 African Holding Comp Of America Castle 112 CFM56-5a1 1990-07 Sold 2011.06.01A320-214 ILFC Koralblue Airlines 1454 CFM56-5b4/P 2001-03 Returned 2011.06.23A320-214 Calliope ILFC 1454 CFM56-5b4/P 2001-03 Sold 2011.06.23A320-214 Ural Airlines AFS 1751 CFM56-5b4/P 2002-03 Leased 2011.06.23A320-232 Qantas Airways Ril Aviation 2515 V2527-A5 2005-07 Sold 2011.06.01A320-232 Jetstar Airways Qantas Airways 2515 V2527-A5 2005-07 Leased 2011.06.01A320-214 Unknown Air Berlin 2539 CFM56-5b4/P 2005-09 Returned 2011.06.25A320-214 Interjet Unknown 2539 CFM56-5b4/P 2005-09 Leased 2011.06.25A320-232 OAS Australia Macquarie 2642 V2527-A5 2006-03 Transferred 2011.06.01A320-232 Qantas Airways OAS Australia 2642 V2527-A5 2006-03 Leased 2011.06.01A320-232 Jetstar Airways Jetstar Airways 2642 V2527-A5 2006-03 Sub-Leased 2011.06.01A320-232 OAS Australia Macquarie 2651 V2527-A5 2005-12 Transferred 2011.06.01A320-232 Qantas Airways OAS Australia 2651 V2527-A5 2005-12 Leased 2011.06.01A320-232 Jetstar Airways Jetstar Airways 2651 V2527-A5 2005-12 Sub-Leased 2011.06.01A320-214 GE Capital Orbest Orizonia Airlines 2745 CFM56-5b4/P 2006-03 Returned 2011.06.24A320-214 Celestial GE Capital 2745 CFM56-5b4/P 2006-03 Sold 2011.06.24A320-212 Transamerica Aviation Smartlynx Airlines 283 CFM56-5a3 1991-12 Returned 2011.06.01A320-214 Azerbaijan Airlines Belair Airlines 3006 CFM56-5b4/P 2006-12 Sub-Leased 2011.06.14A320-232 Turk Hava Yollari Wells Fargo 3308 V2527-A5 2007-10 Leased 2011.06.14A320-232 Anadolujet Crescent Leasing 3308 V2527-A5 2007-10 Sub-Leased 2011.06.14A320-232 Volaris Amentum 3543 V2527-A5 2008-06 Leased 2011.06.06A320-212 Travel Service Airlines Nouvelair Tunisie 400 CFM56-5a3 1993-01 Sub-Leased 2011.06.19A320-211 Arkia Israel Airlines Smartlynx Airlines 426 CFM56-5a1 1993-04 Sub-Leased 2011.06.01A320-214 Avolon Aerventure 4310 CFM56-5b4/3 2010-05 Sold 2011.06.01A320-214 Air Arabia Avolon 4310 CFM56-5b4/3 2010-05 Leased 2011.06.01A320-214 Air Arabia Maroc Air Arabia Maroc 4310 CFM56-5b4/3 2010-05 Sub-Leased 2011.06.02A320-214 Avolon Aerventure 4375 CFM56-5b4/3 2010-07 Sold 2011.06.01A320-214 Spring Airlines Avolon 4375 CFM56-5b4/3 2010-07 Leased 2011.06.02







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Management • Sales & Leasebacks • All Manufacturer Management • Long, Medium & Short Term Leases

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A320-214 Interjet Aerventure 4411 CFM56-5b4/3 2010-08 Leased 2011.06.27A320-232 Avolon Crescent Leasing 4518 V2527-A5 2010-11 Sold 2011.06.01A320-232 Indigo Avolon 4518 V2527-A5 2010-11 Leased 2011.06.02A320-214 Juneyao Airlines Airbus 4587 CFM56-5b4/3 2011-05 Delivered 2011.06.01A320-232 Air China Airbus 4593 V2527-A5 2011-05 Delivered 2011.06.02A320-232 Hainan Airlines Airbus 4602 V2527-A5 2011-05 Delivered 2011.06.10A320-232 Shenzhen Airlines Airbus 4620 V2527-A5 2011-06 Delivered 2011.06.16A320-214 China Eastern Airlines Airbus 4627 CFM56-5b4/3 2011-06 Delivered 2011.06.24A320-232 Tiger Airways Tiger Airways 4645 V2527-A5 2011-03 Returned 2011.06.02A320-232 Sichuan Airlines Airbus 4707 V2527-A5 2011-05 Delivered 2011.06.09A320-232 British Airways Airbus 4725 V2527-A5 2011-05 Delivered 2011.06.01A320-214 AWAS Airbus 4727 CFM56-5b4/3 2011-05 Delivered 2011.06.09A320-214 AWAS Airbus 4727 CFM56-5b4/3 2011-05 Sold 2011.06.09A320-214 Frontier Airlines AWAS 4727 CFM56-5b4/3 2011-05 Leased 2011.06.09A320-214 Interjet Airbus 4733 CFM56-5b4/3 2011-05 Delivered 2011.06.22A320-214 GE Capital Airbus 4735 CFM56-5b4/3 2011-05 Delivered 2011.06.07A320-214 Orbest Orizonia Airlines GE Capital 4735 CFM56-5b4/3 2011-05 Leased 2011.06.07A320-232 Wizz Air Hungary Airbus 4736 V2527-A5 2011-05 Delivered 2011.06.17A320-232 Wizz Air Hungary JSA 4736 V2527-A5 2011-05 Sale-Leaseback 2011.06.17A320-214 GE Capital Airbus 4738 CFM56-5b4/3 2011-05 Delivered 2011.06.20A320-214 Spring Airlines GE Capital 4738 CFM56-5b4/3 2011-05 Leased 2011.06.20A320-214 Easyjet Airbus 4740 CFM56-5b4/3 2011-06 Delivered 2011.06.29A320-232 Wizz Air Hungary Airbus 4741 V2527-A5 2011-05 Delivered 2011.06.23A320-232 Avolon Wizz Air Hungary 4741 V2527-A5 2011-05 Sold 2011.06.23A320-232 Volaris Avolon 4741 V2527-A5 2011-05 Leased 2011.06.23A320-214 CIT Airbus 4742 CFM56-5b4/3 2011-06 Delivered 2011.06.22A320-214 Vueling Airlines CIT 4742 CFM56-5b4/3 2011-06 Leased 2011.06.22A320-214 Aviation Capital Group Airbus 4745 CFM56-5b4/3 2011-06 Delivered 2011.06.27A320-214 Bank Of Utah Airbus 4745 CFM56-5b4/3 2011-06 Sold 2011.06.27A320-214 Frontier Airlines Bank Of Utah 4745 CFM56-5b4/3 2011-06 Leased 2011.06.27A320-214 Air France Airbus 4747 CFM56-5b4/3 2011-06 Delivered 2011.06.01A320-214 Air France JSA Aircraft 4747 CFM56-5b4/3 2011-06 Sale-Leaseback 2011.06.02A320-214 Easyjet Airbus 4749 CFM56-5b4/3 2011-06 Delivered 2011.06.27A320-214 Spring Airlines Airbus 4750 CFM56-5b4/3 2011-06 Delivered 2011.06.28A320-232 Indigo Airbus 4752 V2527-A5 2011-05 Delivered 2011.06.30A320-232 Indigo Airbus 4757 V2527-A5 2011-05 Delivered 2011.06.01A320-232 Indigo HKAC Leasing 4757 V2527-A5 2011-05 Sale-Leaseback 2011.06.02A320-214 Yes Airways Jet-I 566 CFM56-5b4/2 1995-11 Leased 2011.06.21A320-212 Unknown ILFC 579 CFM56-5a3 1996-02 Sold 2011.06.09A320-212 Donbassaero Unknown 579 CFM56-5a3 1996-02 Leased 2011.06.20A320-212 Unknown ILFC 645 CFM56-5a3 1996-11 Sold 2011.06.10A320-212 Donbassaero Unknown 645 CFM56-5a3 1996-11 Leased 2011.06.20A320-214 Aegean Airlines Smartlynx Airlines 724 CFM56-5b4/P 1997-09 Sub-Leased 2011.06.01A320-211 White Airways ILFC 726 CFM56-5a1 1997-10 Leased 2011.06.01A320-200neo(W) AirAsia Airbus (200) Leap-X 2016-11 Ordered 2011.06.23A320-200 China Aviation Supplies Airbus (46) 2012-11 Ordered 2011.06.28A320-200neo(W) Goair Airbus (72) 2015-11 Ordered 2011.06.23A320-200neo(W) GE Capital Airbus (60) Leap-X 2016-09 Ordered 2011.06.20A320-200 ICBC Airbus (42) 2012-09 Ordered 2011.06.28A320-200 Indigo Airbus (30) 2016-01 Ordered 2011.06.22A320-200neo(W) Indigo Airbus (150) 2016-04 Ordered 2011.06.22A320-200neo(W) LAN Airlines Airbus (20) 2016-10 Ordered 2011.06.22A320-200neo(W) SAS Airbus (30) Leap-X 2017-01 Ordered 2011.06.20A320-200neo(W) SAS Airbus [11] Leap-X 2021-01 Optioned 2011.06.20A321-231 Sichuan Airlines Airbus 4731 V2533-A5 2011-05 Delivered 2011.06.07A321-231 Vietnam Airlines Airbus 4737 V2533-A5 2011-05 Delivered 2011.06.09A321-231 China Eastern Airlines Airbus 4746 V2533-A5 2011-06 Delivered 2011.06.23A321-231 Lufthansa Airbus 4753 V2533-A5 2011-06 Delivered 2011.06.22A321-231 Turk Hava Yollari Airbus 4761 V2533-A5 2011-06 Delivered 2011.06.29A321-211 Dgvr Alpha Mobilien Gulf Air 675 CFM56-5b3/P 1997-05 Returned 2011.06.01A321-231 Onur Air PK Airfi nance 792 V2533-A5 1998-02 Leased 2011.06.03A321-200neo(W) Transasia Airways Airbus (6) 2017-04 Ordered 2011.06.21A330-223 Hong Kong Airlines Hainan Airlines 1034 PW4170 2009-06 Returned 2011.06.29A330-223 China Southern Airbus 1233 PW4170 2011-05 Delivered 2011.06.22A330-243 Aircastle Airbus 1236 Trent772b-60 2011-06 Delivered 2011.06.01A330-243 South African Aircastle 1236 Trent772b-60 2011-06 Leased 2011.06.02A330-243 Air Europa Calliope 551 Trent772b-60 2003-11 Leased 2011.06.08A330-203 OAS Australia Macquarie 887 CF6-80e1a3 2007-11 Transferred 2011.06.01A330-203 Qantas Airways OAS Australia 887 CF6-80e1a3 2007-11 Leased 2011.06.01A330-202 OAS Australia Macquarie 945 CF6-80e1a4 2008-07 Transferred 2011.06.01A330-202 Qantas Airways OAS Australia 945 CF6-80e1a4 2008-07 Leased 2011.06.01A330-202 Jetstar Airways Jetstar Airways 945 CF6-80e1a4 2008-07 Sub-Leased 2011.06.01A330-203(Mrtt) Australian Air Force MTAD 951 CF6-80e1a3 2008-04 Sold 2011.06.22A330-203(Mrtt) Australian Air Force MTAD 969 CF6-80e1a3 2008-10 Sold 2011.06.01A330-243f Turk Hava Yollari Airbus 1092 Trent772b-60 2011-05 Delivered 2011.06.01A330-343e Etihad Airways Airbus 1226 Trent772b-60 2011-05 Delivered 2011.06.01A330-323e MAS Airbus 1229 PW4168a 2011-05 Delivered 2011.06.01A330-323e MAS JSA 1229 PW4168a 2011-05 Sale-Leaseback 2011.06.02A330-343e Aerofl ot Airbus 1232 Trent772b-60 2011-06 Delivered 2011.06.23A330-323e MAS Airbus 1234 PW4168a 2011-06 Delivered 2011.06.24A330-323e MAS JSA 1234 PW4168a 2011-06 Sale-Leaseback 2011.06.24A330-343e Singapore Airlines Airbus (15) Trent772b-60 2013-05 Ordered 2011.06.29A330-343e Saudi Arabian Airlines Airbus (4) Trent772b-60 2013-07 Ordered 2011.06.20A340-313x ILFC Cathay Pacifi c 381 CFM56-5c4 2000-12 Returned 2011.06.01A340-313x Srilankan Airlines ILFC 381 CFM56-5c4 2000-12 Leased 2011.06.02A380-841 Singapore Airlines Airbus 058 Trent970-84 2010-07 Delivered 2011.06.16A380-861 Air France Airbus 064 GP7270 2010-08 Delivered 2011.06.17A380-861 Air France SNC Otter Bail 064 GP7270 2010-08 Sale-Leaseback 2011.06.17A380-800 Skymark Airlines Airbus (2) 2016-10 Ordered 2011.06.23


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Leases • Operating Leases • Asset Management • Sales & Leasebacks

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Trading • All Manufacturer Types • Sales & Leasebacks • Asset nagement • Long, Medium & Short Term Leases • Operating Leases • Asset Management • All Manufacturer Types • Sales & Leasebacks

Operating Leases • Engine Trading • Long, Medium & Short Term Leases • All Manufacturer Types • Operating Leases • Asset Management Leases • Long, Medium & Short Term Leases • Operating Leases

Manufacturer Types • Sales & Leasebacks • Engine TradingLong, Medium & Short Term Leases • Operating Leases • Sales

& Leasebacks • Engine Trading • Asset Management • Long Medium & Short Term Leases • Engine Trading • Operating

Leases • All Manufacturer Types • Asset Managementum & Short Term Leases • Asset Management • Sales Leasebacks • All Manufacturer Types • Long, Medium and Short Term Leases • Operating Leases • Asset

Management • Sales & Leasebacks • All Manufacturer Management • Long, Medium & Short Term Leases

er Types • Operating Leases • Asset Management• Sales & Leasebacks • All Manufacturer Types

• Long, Medium & Short Term Leases • Operating Leases • Asset Management • Sales Leasebacks ating Leases • All Manufacturer Types • Long

Medium Short Term Leases • Operating Leases Asset Management • Engine

Engine Trading • All Manufacturer Types Leasebacks • Engine Trading • Asset

Management • Medium & Short Term Leases • Operating Leases • Asset

Management • All Manufacturer TypesSales & Leasebacks • Operating Leases • Engine Trading • Long

Medium & Short Term Leaseseases • All Manufacturer Types

ent • Asset ManagementMedium & Short Term Leases • Operating

Leases •Sales & Leasebacks• Engine Trading • Long, Medium & Short

Term Leases • Operating LeasesSales & Leasebacks • Engine

Trading • Asset Management • Operating Leases • Long, Medium & Short Term Leases

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To us, each transaction builds a relationship. And it’s these long relationships that provide

stability and predictable performance for our customers, fi nancial partners and suppliers.

After all, if we make the deal work for everyone today, we’ll all look forward to doing the

next one tomorrow. Learn more at www.aviationcapital.com

Operating Leases • Asset Management • Aviation InvestmentMain Office: Newport Beach +1 949 219 4600 • Regional Offices: London, Santiago, Seattle, Shanghai, Singapore

It’s about a lease that lasts fi ve years

and a relationship with no expiration date.

It’s about more than the plane.

Fin_ACG No Expiration Date Ad_v3_AFM.indd 1 5/4/11 9:26 AMAFG Yearbook 2012.indd 130 07/09/2011 13:56

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