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Shaping The Market
01 October 2007
Siqalane Taho looks at landmark deals that have shaped the engine financing market over the past year.
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Lets face it, equity capital markets have not taken kindly to aviation securitizations during troubled times.
When GPA pioneered the first aircraft-backed securitization in 1992, Aircraft Lease Portfolio Securitization Ltd 92-1 (Alps), many hailed the emergence of an innovative financing structure that finally tapped into the deep pockets of the public market. Two refinancing deals later and the subsequent failure of GPA, the Irish lessor, saw public opinion change.
After the September 11 2001 terrorist attacks on the US, many aviation securitizations were downgraded as investors and ratings agencies became jittery about the industry. But, during these times engines and spare parts proved to be the unlikely heroes of the market as both bankers and lessors convinced investors of the value of putting money in these untapped assets.
American Airlines, Continental Airlines and, more recently, Willis Lease Finance Corporation, through West, and GE Commercial Aviation Services (Gecas), with Blade, proved...
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