A change at the top for Boeing; Gazprom Leasing; and Labrador ABS rated

Eleanor Steed
By Eleanor Steed November 23, 2016 15:05

A change at the top for Boeing; Gazprom Leasing; and Labrador ABS rated

Boeing finally put an end to the rumours that have engulfed Seattle for the past few months with the news that Ray Conner is to be replaced as president and head of commercial airplanes with Kevin McAllister, an ex-GE man (see Americas People News below).

There is the sense that this change is the forerunner to a change of tack for Boeing’s product strategy. Some say that the MAX may be abandoned and the US airframe manufacturer should adopt an entirely new single aisle strategy. Putting in place a new head now with ensure the launch of any new strategy has a solid leader to see it through to fruition. Adopting a new strategy would not be the best time for Boeing from a capital expenditure perspective, however. To build strong cash flow to support a new product development project, Boeing needs to increase production rates on the its commodity product, the 737, but it has to keep levels steady on the 777s and 787s, which drains resources. Time will tell whether McAllister will take up the mantle but there has certainly been no indication that Boeing is changing strategy, just yet. If it did, it would have to contend with a lot of unhappy lessor customers that have invested in the Max. Boeing has announced a new customer for the Max today from Fiji Airlines but this again is only a letter of intent perhaps in light of the persisting rumours.

Pratt & Whitney, which has been spending a lot of time courting Boeing, may also be dismayed by the choice of new head from rival GE.

Meanwhile, Gazprom Leasing is looking for western-built aircraft, reports Russian Aviation Insider. Please form an orderly queue! Meet the team at Airline Economics Growth Frontiers Dublin in January 2017.

Also today, GE is preparing to launch another asset backed securitisation, Labrador, which has been rated by Kroll Bond Rating Agency. The $709.0 million transaction is split into two tranches: $603.0 million A notes, with an initial loan-to-value ratio of 65.0%, rated A by Kroll; and $106.0 million B notes, with an LTV of 76.4%, rated BBB. The notes will be issued by Labrador Aviation Finance Limited (Labrador Ireland) and Labrador Aviation Finance USA (Labrador USA). GE Capital Aviation Services Limited will act as the servicer for the transaction.

The notes are secured on a portfolio of 20 aircraft on lease to 16 airlines located in 15 countries. The portfolio has an initial value of approximately $928.0 million.

Mizuho is the sole structuring agent and sole bookrunner. Natixis is the liquidity facility provider. Phoenix American Financial Services is the managing agent, with Wells Fargo as the trustee.

Remember to vote in the Aviation 100 Awards Survey

We are asking our friends in the aviation industry to vote for their peers in the annual Aviation 100 awards survey.

The Aviation 100 recognises the year’s most outstanding performers. The categories are: Airline, Lessor, MRO, Bank, CEO/Industry Leader, CFO/Treasury Team, Appraiser, Law Firm, and Parts Suppliers.

The top ten rankings for each category are based primarily on this industry survey vote, however the votes are then filtered to ensure fairness (votes for your own company will not count for example). Nominations for the law firm and bank of the year are also accepted and are judged using a combination of points awarded for specific criteria (see below).

The Aviation 100 also includes the Face of Aviation award, which is awarded to the individual that has made a significant contribution to the aviation industry. The winner of this category is decided through nomination, overall performance and editorial discretion.

Top ten criteria for each category
 
Airline of the Year
Criteria judged include: Profit, debt, load figures, RPK, orders and routes held, M&A/expansion activity

CEO of the Year
Criteria judged include: Performance of company over past 12 months, personal involvement with deals/expansions/agreements/unions among others.

CFO/Treasurer of the Year
Criteria judged include: Best finance deal in past 12 months but also looks at consistency of performance and deals book.

Lessor of the Year
Criteria judged include: Number and types of aircraft on books and increase over past 12 months, profit/turnover/debt, value of company against 12 months ago, client list – new clients won in the past 12 months, aircraft owners against aircraft managed, lease rate performance and results of the Aviation News survey for satisfaction.

MRO of the Year
Criteria judged include: Aircraft/engine types handled, contracts in place – won against lost, global facilities/new facilities/facilities planned, total number of aircraft/engines maintained during past 12 months, turnover, results of the Aviation News survey.

Law firm of the Year
Criteria judged include: Deals worked on, aerospace clients on books, Deal of the Year pitch, value of deals worked on, number of cases closed; number and office locations/employees, employee turnover in the aviation department in the past 12 months.

Appraiser of the Year
Criteria judged include: Results of the Aviation News survey, number of clients handled, number offices/employees, turnover in past 12 months, aircraft type specialism.

Bank of the Year
Criteria judged include: Number of deals closed in the past 12 months, value of deals closed, results of Aviation News survey.

Parts supplier of the Year
Criteria judged include: Parts stocked, clients on books/new clients in the past 12 months, locations/number of employees, ability to source, supply and timescale; plus results from the Aviation News survey.

Face of Aviation award
The Face of Aviation award celebrates one individual who has made the most outstanding contribution to the aerospace industry in the past 12 months. Nominations for this prestigious award are welcomed.

 

The aviation 100 awards gala dinner takes place during the Airline Economics Growth Frontiers Dublin conference on Monday January 16, 2016. Nominations for the overall Aviation 100 awards are now open. Cast your vote here: Aviation 100 Awards 2017. You have until December 14, 2016 to cast your vote. Please feel free to send out the link to you clients – but please note votes cast for your own company will not be counted.

The Aviation 100 Deals of the Year awards are also open for nominations.

Any company can nominate its clients or its own services for consideration to win one of the top ten categories by submitting a pitch to the Aviation 100 editorial team victoria@aviationnews-online.com. Please also send nominations for the Face of Aviation award to the same address, describing why that person deserves to win the award for the most outstanding contribution to the aviation industry in 2016.

The deadline for nominations and pitches for the Aviation 100 2016 awards is December 14, 2016.

Eleanor Steed
By Eleanor Steed November 23, 2016 15:05