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Strong EETC market in 2009
19 February 2010
The reopening of the capital markets in the second half of 2009 was unexpected. With $4.4 billion worth of EETC issuance in the last six months of last year, what should we expect for the year to come?
Read more:
EETC
Continental
American Airlines
Delta Air Lines
United Airlines
Boeing
Goldman Sachs
JP
In March last year Mark Streeter, managing director, North America credit research, JPMorgan, sat in front of an audience at the International Society of Transport Aircraft Trading and asked how long it would be before the capital markets returned. The options were:2009, 2010, 2011, 2012 or never. Most people in the audience voted never. Hardly any one thought airlines would issue any paper in 2009.
In June, just three months later, Continental went to market with a $390 million enhanced equipment trust certificate (EETC) secured by 17 aircraft both old and new. It was the first time an EETC had refinanced a previously issued EETC. Continental is the biggest issuer of EETCs, and reopened the market in 2007 with a $1.14 billion transaction.
American Airlines, Delta Air Lines and United Airlines all followed. In fact, the likely reason for a reduction in issuance in 2010 is...
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