Our Services

Expert aviation advisory and asset management tailored for you.

Financing

Highly experienced at analysing the comparative cost benefits of different aircraft types looking at comparative financing costs, operational costs including through life maintenance and anticipated residual values. We also analyse each aircraft type against an airline’s current route network and potential future routes to accommodate growth for the airline. We also analyse comparative fuel savings and other major operating costs to provide airlines with a detailed financial model to run sensitivity analysis and provide senior management with a detailed comparison upon which to base aircraft type selection.

We can negotiate on an airline’s behalf with both Airframe and Engine manufacturer to provide detailed Letters of Intent and full Purchase Agreements with firm orders, and firm and flexible options and delivery schedules. We also assist to negotiate major commercial terms and conditions including escalation formulae, PDP payment schedules, training and marketing credits, ECA support, financial support and performance guarantees. This also extends to negotiating aircraft and engine support contracts including power by the hour, term cost plans or similar contracts.

Asset Management

The team has considerable experience of managing aviation assets, mainly aircraft and aircraft engines on behalf of airlines and other asset owners. Our aim is to ensure that the ownership and operation of assets is done on a secure basis and any risks associated with ownership and/or operation are monitored, mitigated and minimised. We also seek to ensure that the residual value of assets is maintained and maximised with opportunities to sell or monetise are monitored and market opportunities are identified.

We also manage leases on behalf of airlines and aircraft lessors and other owners/investors. We ensure that all obligations under lease agreements are monitored and met and where actions are required such as meeting return conditions or making maintenance reserve payments these are planned for well in advance and where discussions are needed with lessors/owners or maintenance providers we support the airline in such negotiations.

We are also able to provide technical assistance and advice, including inspections and can provide CAMO support as required

Remarketing

The Team has extensive experience of Remarketing aircraft and engines on behalf of airlines and aircraft owners. We have experience of remarketing all commercial aircraft types from regional turboprop aircraft and regional jets (ATR & Bomabrdier), narrowbody aircraft (B737 and A320 families and B757), widebody aircraft (B767, B777, B747, A310, A330 and A340) and all major engine types manufactured by CFM International, IAE, GE, RR and P&W.

Our remarketing experience also extends to parting-out aircraft, leasing engines with remaining green time, leasing and exchange programmes for APUs and LDG.

Aircraft Selection and Manufacturer Negotiations

Pre-Delivery Payment Finance

Extensive knowledge of PDP finance having arranged numerous PDP facilities for airlines using both bank debt and funding from the capital markets. Usually, funders will seek an equity contribution from the airline of circa 15 -25% of the total PDPs.

Financing is usually provided through an SPC to ring-fence the aircraft for security purposes and separate from the rest of an airline’s fleet. Third party finance is secured against an assignment of the aircraft purchase agreement. These transactions require close co-operation with the manufacturer (we have considerable experience of closing transactions with Boeing, Airbus, Embraer and Bombardier) and an understanding of the tensions that can be faced in documentation between the manufacturer, airline and the financiers and how such tensions can be resolved satisfactorily for all parties.

PDP Finance can be provided as part of a larger financing facility or operating lease used to finance the aircraft on a long-term basis following delivery by the manufacturer.

Debt and Finance Leases

We are able to structure and arrange term debt finance from both the aviation finance banks and the debt capital markets (institutional investors, credit funds, family offices). Banks will typically lend up to

75% of the current market value of an aircraft and it may be possible to ‘top this up’ by an additional 10 – 15% from a junior lender usually from the debt capital markets. Loans will usually be secured on the aircraft asset via a first priority mortgage in favour of the lenders or a security trustee on behalf of the lenders.

We would typically seek to structure and optimise the cash flows for the airline, which may include a balloon payment at the end of the loan term.

The inclusion of a junior loan will necessitate the requirement for an intercreditor agreement between the senior and junior lenders. We have experience of negotiating these types of agreements.

Finance leases are essentially a form of debt but structured so that ownership of the aircraft remains with an orphan special purpose company (SPC) usually domiciled in a jurisdiction that is an aircraft owning friendly location and may also be tax free or tax neutral (Ireland, Cayman Islands, or Channel Islands). At the end of the finance lease term the airline would typically have a purchase option at a nominal price. Unlike an operating lease there are no Maintenance reserves or return condition obligations imposed on the lessee.

We are able to structure, arrange and advise an airline on sourcing appropriate funding for finance leases, and manage the lease throughout the finance lease term.

We have considerable experience of structuring and arranging financings in the Japanese market using tax equity to provide Jolco financings (and its predecessor the JLL). We have structured and arranged over 131 aircraft split roughly 50:50 by value between widebody and narrowbody aircraft which includes B747-400, B777-200, B777-300ER, B767-300ER, B787-8, A330-200, B737-800, A320, A319, & A318. As part of the above process we also arranged and participated in roadshows for both equity providers and Japanese banks in Tokyo for BA over a 20 year period and also for both easyJet and Ryanair for their first Jolco financings.

Operating Leases

We are able to source and arrange operating leases for airlines in respect of both current in-production and certain out of production commercial aircraft. The aircraft can be new where we would typically provide a lease term of 10-12 years or mid to end of life where airlines are buying used aircraft with a view to operating them for the remainder of their useful life or a sale and leaseback transaction where an airline is currently operating an aircraft but know that it will be exiting the fleet in one to five years’ time and may want to raise cash against such assets.

As required we are able to manage leases throughout the lease term.

The CACL team has significant experience in structuring, arranging, and negotiating operating leases and the placing and remarketing of aircraft, managing leases and leased assets and managing lease returns and negotiating return conditions and return compensation.

Airline Advisory

The team provides a comprehensive range of advisory services and analytical support for all types and categories of airlines including full-service flag and legacy carriers, low cost airlines, widebody and narrowbody operators serving international and/or domestic or short haul routes, charter airlines and tour operators, regional airlines, cargo and freight airlines domiciled and operating in all regions of the world.

Services provided include the following main areas: