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Thursday 15th February 2018
Dublin Aviation Summit
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LCI closes inaugural capital markets term loan
Lease Corporation International (LCI), the helicopter lessor and aviation division of the Libra Group, has closed its inaugural $55 million capital markets term loan financing.

The private, senior secured tranches have a maturity of five years, and were offered to a range of US financial institutions. CIT Group and Prudential Capital Group, the private capital investment arm of PGIM, the $1 trillion global investment management businesses of Prudential Financial, jointly funded the financing.

LCI is using the proceeds from the financing to fund the continuing expansion of its fleet with the acquisition of six new Leonardo AW139 and AW169 helicopters. All of the aircraft have confirmed placements with lessees in Emergency Medical Services (EMS) and Search and Rescue (SAR) roles.

“LCI’s fast-growing helicopter leasing platform has now achieved the size for us to undertake our maiden capital markets placement,” says Jaspal Jandu, Chief Financial Officer of Lease Corporation International. “This transaction enables us to diversify our capital base and lower our cost of capital, further increasing the efficiency of our operations.”

Philip Tozer-Pennington
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Orix Aviation
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AV Corp International
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Available assets from
Aircraft
Model MSN YoM TFHs/TFCs Engines CC OL/A/S AD
737-800 33981 2007 31304/19096 CFM56-7B24/3 186Y OL/S 1906
Engines and APUs
Model ESN L/E/S AD
CFM56-7B26/3 896885 L 1803
CFM56-7B26/3 803978 L IMM
V2533-A5 V11730 L 1803
V2527-A5 V10766 L 1803

Additional Sale & Lease Listings

Engine Type ESN Available For Condition Owner/Rep Contact
Trent 884 51138 SALE Serviceable Aviation Concepts, Inc. dwood@aviationconcepts.com
Trent 884 51394 SALE Serviceable Aviation Concepts, Inc. dwood@aviationconcepts.com
GTCP331-500B P-1109 SALE/LEASE Serviceable Aviation Concepts, Inc. dwood@aviationconcepts.com

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Airline News
Norwegian and Spanish pilot union SEPLA sign collective agreement
Norwegian and Spanish pilot union SEPLA have signed a comprehensive collective bargaining agreement (CBA). The CBA will be valid for two years and represents an important step forward in one of the company’s most important markets. Norwegian has also signed a CBA for its long-haul crews based in Italy.

“This agreement is very important for Norwegian as it lays the foundation for a continued fruitful relationship between our staff and management, which is crucial to the Group’s future growth. We look forward to a long and constructive relationship with SEPLA,” says Helga Bollmann Leknes, Norwegian Group’s Chief Human Resources Officer.

This is the second CBA Norwegian has signed in Spain, following the cabin crew collective back in June 2017. Elsewhere in Southern Europe, Norwegian has also signed CBAs with Italy’s short- and long-haul pilots and cabin crew The Italian long-haul CBA was also signed recently.

LOT launches flights to Billund
Billund is LOT’s fifth destination in Scandinavia with flights to be operated throughout a week on a daily basis, including Monday through Friday twice a day. The first flight from Warsaw to Billund is scheduled for July 2. With the decrease in demand for flights on Saturdays and Sundays, LOT is going to operate one flight a day on that route.

The flight will be operated by Embraer 170s and 175s with the seat capacity of 70 – 82 seats in three travel classes.

On Saturdays there will be one morning flight only and on Sundays – one afternoon flight.

Cobalt Air debuts Düsseldorf route from Larnaca
Cobalt Air, Cyprus’ largest airline, has launched a new twice-weekly service beginning May 3, linking Düsseldorf directly with its main base in Larnaca on Thursdays and Saturdays.

“We are proud to add Düsseldorf to our ever-growing network of services across Europe and the Middle East,” says Andrew Madar, CEO, Cobalt Air. “Germany is an important market for us, both in terms of leisure travellers and those flying on business. This route perfectly complements our existing service to Frankfurt, which launched last year.”

Ryanair launches new Luxembourg to Seville route
Ryanair has launched a new Luxembourg to Seville route which will run twice weekly as part of its Winter 2018 schedule.

Leasing News
NAC delivers one new ATR 72-600 to AirSWIFT on lease
Nordic Aviation Capital (NAC) has delivered one new ATR 72-600, MSN 1440, to AirSWIFT on lease.

AirSWIFT is the Philippines’ only boutique commercial airline that provides direct daily connections to El Nido from Manila, Cebu, Clark, and Boracay (Caticlan). With the delivery of the new aircraft, the airline will expand its network in 2018 and deliver direct flights from El Nido to destinations such as Puerto Princesa, Coron (Busuanga), and Bohol (Tagbilaran). AirSWIFT will also begin flights from Manila to Sicogon in the coming years.

NAC delivers one new ATR 42-600 to Stobart Air on lease
Nordic Aviation Capital (NAC) has delivered one new ATR 42-600, MSN 1213, to Stobart Air on lease.

Stobart Air operates up to 940 flights weekly across 43 routes throughout 11 European countries from bases in the UK & Ireland. Stobart Air operates under the Aer Lingus Regional brand as part of a franchise agreement with Ireland’s national carrier, Aer Lingus and operates Flybe routes from London Southend Airport and the Isle of Man.

Finance News
Jet2 funds one 737-800 using a JOLCO
On 30 January 2018, Dart Group/Jet2.com closed the JOLCO financing of one B737-800 bearing MSN 63162. Crédit Agricole CIB (“CACIB”) acted as Overall JOLCO Arranger, Facility Agent and Security Trustee. NTT and CACIB are Lenders. DART and its financial advisor Omcap were advised by Norton Rose Fulbright and the Japanese parties by Nishimura & Asahi. The Lenders were advised by Vedder Price…”

Gama Aviation to raise £48 million
Gama Aviation is intending to raise £48 million (approximately US$67 million) through a conditional placing of 19,591,837 new ordinary shares of one pence each in the company with institutional and other investors at a placing price of 245 pence per placing share.

Hutchison Capital Holdings, an affiliate of Hutchison Whampoa (China), has agreed to subscribe for new Ordinary Shares in the Placing comprising approximately 21% of the Enlarged Issued Share Capital. US$19.8 million of the proceeds from the Placing will be used to acquire Hutchison’s Hong Kong aviation interests: its 50% stake in Gama Aviation Hutchison Holdings (GAHH) and its 20% stake in China Aircraft Services (CASL).

The balance of proceeds are intended to be deployed during 2018 for a US$20 million capital investment in two ground base maintenance facilities in the US and the development of the Sharjah business aviation centre in the Middle East and for acquisitions targeting air opportunities in Europe and the Middle East and ground opportunities in Europe. The placing and the associated use of proceeds are expected to be dilutive to earnings in 2018, neutral in 2019 and enhancing thereafter. Directors are confident in the strength of the Group’s operations and believe the company is well placed to achieve its expectations in the current year

“The Group operates a robust and resilient business model and we have built a strong operational platform to support our growth through both organic investment and acquisition,” says Marwan Khalek, Chief Executive of Gama Aviation. “The execution of our growth strategy now requires further capital to capture the investment opportunities with which we are currently presented and to accelerate the next stage of our development.
Hutchison’s investment in the Company provides a strong endorsement of our stated strategy and our readiness to execute against that strategy. We welcome them as a long term partner who shares our ambition of becoming the leading global business aviation services company.”

Maintenance News
KLM UK Engineering & Finnair sign line maintenance agreement
AFI KLM E&M subsidiary, KLM Engineering, has signed a line maintenance agreement with Finnair to support its Embraer E190 & Airbus A320 Family aircraft in Edinburgh commencing early 2018.

Ian Bartholomew, Director Business Development & Sales: “KLM UK Engineering Limited will be supporting both Embraer & A320 aircraft for Finnair at our established line maintenance station in Edinburgh. Having been operating at Edinburgh for over 20 years, we are delighted that Finnair are part of our growing customer base and look forward to our future working relationship.”

Technology News
AJW Group signs supply chain management contract with Bombardier Business Aircraft
AJW Group has announced that it has signed a long-term agreement with Bombardier, undertaking all repair management for Bombardier’s rotable inventory.

A key feature of the contract is the strategic sourcing of repairs from OEMs and MROs, including AJW’s maintenance hub for component repair and overhaul service, AJW Technique. AJW will manage the repair process back-shop, optimising performance, and efficiency of the services while reducing operating and total life cycle costs for Bombardier business aircraft.

Star Alliance creates digital services platform with Accenture to deliver an improved experience across its member airline network
Star Alliance has launched a Digital Services Platform (DSP) as a first step to an overall enhancement of digital and mobile services offered to customers travelling across the 28 airline member Star Alliance network. The platform was developed and implemented in conjunction with Accenture as part of the Alliance’s strategy to further improve the customer journey.

The DSP can gather data provided by an individual member airline or third-party source and make it available to all members, enabling them to build it into their own customer facing digital applications. The longer-term aim is to allow customers to use any member airline’s website or mobile application to obtain all the information they need for travel on several Star Alliance member airlines.

“Most frequent travellers have a ‘home airline’ in our network and would prefer to control their entire travel experience through a single app or website,” said Star Alliance CEO Jeffrey Goh. “We are therefore working to create central capabilities that can be shared for use by our individual members.”

Once a service offer is available from the DSP, member airlines can decide individually if and when they make it available to customers. For instance, a seat selection feature launched on February 2nd now allows a United Airlines customer to select a seat on Singapore Airlines flights booked via united.com or the United App. As a result, the customer travelling on fare types that include complimentary advance seat selection can choose a specific seat at time of reservation for the entire journey on United Airlines and Singapore Airlines, rather than only at time of check-in. This feature will be made available across the Alliance progressively.

Lufthansa is also using the DSP technology to provide baggage tracking information for its customers on journeys that include flights on other Star Alliance airlines. The data is provided by the Star Alliance Baggage Hub which went into operation at the end of 2016. It collects relevant baggage information from a wide-range of sources and makes it available to all member carriers included in a passenger’s itinerary.

In addition to helping develop and implement DSP, Accenture is supporting Star Alliance with on-going work to identify customer pain points and expectations.

Critical to the development of DSP services is to ideate, prototype and develop DSP features from a customer perspective. The aim is to identify these more frequent issues or
areas for improvement that may arise when customers are travelling on one or more airline, as well as in the event of service disruptions.

“A seamless travel experience for airline customers depends on an airline’s ability to participate in a broader travel ecosystem spanning the whole spectrum of the aviation, travel and tourism industry,” said Robert Zippel, who leads technology consulting within Accenture’s Travel industry practice. “Airlines need to embrace collaboration with their alliance member carriers and associated ecosystems to orchestrate a greater understanding of a traveller’s fast-changing requirements. By offering real-time data exchange and standardised applications to improve a customer’s travel experience for multiple carrier journeys and beyond, the Star Alliance DSP is a great example of a system that enables this kind of collaboration.”

People News
Mott MacDonald appoints Graham Bolton as new global aviation practice leader
Mott MacDonald has appointed Graham Bolton as its new global aviation practice leader. Graham will be responsible for developing the consultancy’s global aviation practice community, as well as maintaining key client relationships and providing strategic direction for key pursuits and projects.

With over 25 years’ experience in the aviation sector, Graham has been involved in the strategic planning, design and delivery of projects at airports around the world, including Heathrow, Dubai, Istanbul, Hong Kong and Seattle. He joins Mott MacDonald from Atkins, where he was market director for aviation, while he has also previously led Arup’s European aviation business. Graham is also the current chairman of the British Aviation Group, which promotes engagement across and collaboration within the aviation supply chain.

Graham succeeds Chris Chalk, who has relocated to New York to lead the masterplanning of John F. Kennedy International Airport and to help grow Mott MacDonald’s North American aviation business. Chris will retain his role leading the consultancy’s aviation sub-sector, which promotes business growth and works closely with many of Mott MacDonald’s other practices.

Brad Moyes, Mott MacDonald’s global sector leader for transportation, said: “Graham is someone we have known for many years as a result of working together on various projects. He is a fantastic addition to the team and the perfect person to continue the expansion our world class aviation capability that Chris has developed over the years.”

MTU Maintenance
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Airline News
Emirates firms up order for up to 36 additional A380s
Emirates and Airbus have firmed up an earlier Memorandum of Understanding (MoU) and signed a contract for the 20 additional A380s with a further 16 options to be confirmed at a later date. The total agreement for 36 aircraft is valued at US$16 bn based on latest list prices. Deliveries are to start as early as 2020.

The agreement was signed at the World Government Summit by HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group; and Mikail Houari, Airbus President for Africa and Middle East. HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, ruler of the Emirate of Dubai and Edouard Philippe, Prime Minister of France were also present.

HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “This agreement underscores our commitment to the A380 programme, providing stability to the A380 production line and supporting thousands of high-value jobs across the aviation supply chain. For Emirates, the A380 has been a successful aircraft for our customers, our operations, and our brand. We look forward to continue working with Airbus to further enhance the aircraft and onboard product.”

“We thank Emirates, HH Sheikh Ahmed, Tim Clark and Adel Al-Redha for their continued confidence in the A380, which has so successfully transformed air travel in the 21st century,” said Fabrice Brégier, Airbus President Commercial Aircraft and Chief Operating Officer. “This latest agreement further demonstrates the strength of our valued partnership with Emirates in support of their impressive growth.”

Technology News
Satair and Cobham Aerospace Communications renew Asia-Pacific Middle East distribution agreement
Satair and Cobham Aerospace Communications have renewed their distribution agreement across the Asia-Pacific region, including China and also extending into the Middle East.
The agreement covers a range of aircraft intercommunications equipment including radio management panels, audio control panels, audio management units and related spares.

“We are delighted in the continued trust given to us by Cobham”, said Rene Frandsen, Managing Director and Head of Sales and Support for Satair in Singapore. “We will continue to work hard to deliver world-class support.”

Stephane Lagarde, Director Customer Support and Services for Cobham Aerospace Services added: “During the last two years, we increased our customer satisfaction thanks to our new customer support organization and partnership, so Cobham Aerospace Communications is pleased to renew this agreement with Satair, who has a strong presence in the Asia/Pacific Middle-East region we look forward to the continuation of our collaboration.”

Charles Taylor Aviation Asset Management
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Airline News
Frontier to fly to three new destinations
Frontier Airlines has launched new non-stop low-cost service to three cities: Denver, Trenton, N.J. and Islip/Long Island, N.Y.

Leasing News
ALC places one A320-200neo with Atlantic Airways
Air Lease Corporation (ALC) has placed one Airbus A320-200neo on a long-term lease agreement with Atlantic Airways, the national airline of the Faroe Islands. The aircraft will deliver in March 2019 from ALC’s order book with Airbus.

“We are very pleased to announce this new lease placement with Atlantic Airways, a new customer for ALC,” said Steven F. Udvar-Házy, Executive Chairman of Air Lease Corporation. “Atlantic Airways connects the Faroe Islands in the North Atlantic with multiple destinations in Scandinavia and a growing route network in Europe. The A320neo will help add capacity and efficiency to Atlantic’s all-Airbus fleet.”

Grant Levy, Air Lease Corporation’s Executive Vice President added, “ALC is delighted to welcome Atlantic Airways as our newest customer, and we expect the addition of the A320neo to enhance their fleet operations and provide their passengers with an even better experience than the great service already provided by Atlantic Airways.”

“The addition of this modern, fuel-efficient A320neo aircraft supports our main objective to connect the Faroe Islands with the world, providing good fares to Faroese travelers and further developing the Faroese tourist industry,” said Jóhanna á Bergi, CEO of Atlantic Airways.

People News
CHC Group Appoints New General Counsel
CHC Group has announced that Imran Hayat, currently serving as acting general counsel, has been confirmed by its Board of Managers to assume the role permanently moving forward. Hayat assumed the acting position in January 2018 from his previous position of chief compliance officer and litigation counsel. He will report to Karl Fessenden, CHC’s president and chief executive officer (CEO), and be responsible for all global legal matters.

Hayat joined CHC in 2015 and has been a key part of the company’s restructuring and global compliance efforts. He has more than 15 years of global law firm experience counselling some of the world’s largest companies in the areas of aviation, finance and real estate matters. Hayat has successfully litigated individual and class actions, led large teams of attorneys in complex litigation matters, and is also adept in developing strategies to address complex international legal matters.

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Maintenance News
AirAsia Group’s A320 and A330 fleets to be powered by Skywise Predictive Maintenance Services
AirAsia Group has confirmed that its existing and future A320 and A330 fleet will be powered by Airbus’ Skywise Predictive Maintenance services. The scope encompasses AirAsia and AirAsia X’s fleets across all of the subsidiaries in Malaysia, Thailand, India, Japan, Philippines and Indonesia. This is complemented with an order backlog of around 470 Airbus aircraft – which includes 66 A330neos and over 400 A320/A321neos yet to be delivered. All of these aircraft will become Skywise-enabled.

In addition to this new predictive maintenance service, AirAsia continues to benefit from Skywise Core – a cloud-based environment which offers visibility into its fleet operations.

Tan Sri Tony Fernandes, Group Chief Executive Officer of AirAsia, commented: “We eagerly look forward to unleashing the power of Airbus’ Skywise big-data analytics and predictive technology to obtain superior operational advantage for AirAsia Group’s entire A320 and A330 Family fleets. Skywise will enable us to reach new insights into the operation of our aircraft, optimise our maintenance, engineering and flight operations decision-making and reduce our costs.”

Marc Fontaine, Airbus Digital Transformation Officer, commented: “We are honoured to work with AirAsia with their forward-thinking approach and for helping to shape our vision together in this digital adventure. As the aircraft ‘architect’ and integrator, we naturally thrive in our role of building digital continuity across the aviation ecosystem.”

Airbus launched its new aviation data platform Skywise in collaboration with Palantir Technologies during the Paris Air Show in July 2017, after experimenting substantial benefits when applying its technologies to its own internal processes for two years.

Lufthansa Technik Shenzhen builds up capability
Lufthansa Technik Shenzhen is developing into a comprehensive MRO services provider by significantly expanding its service portfolio.

The German-Chinese company is strengthening its capabilities in the fields of component repair and composite repair (Airframe Related Components, ARC) as well as engine part repair. Extending its Logistics Services, mobile engine services, the Airline Support Team (AST), Lufthansa Technik Shenzhen is reinforcing its position as a trusted partner in the Asia Pacific region.

Lufthansa Technik Shenzhen with its 600 employees recently built facilities to support the latest aircraft types Airbus A350, Boeing 777 and Boeing 787. For 2018, A350 capability will include components such as thrust reverser actuator, hydraulic pumps and batteries.

Detlev Jeske, CEO and President of Lufthansa Technik Shenzhen: “Lufthansa Technik Shenzhen follows the path of a continuous expansion of its range of products by adjusting accurately to the requirements of the customers in the region. This way we are offering the profound know-how and up-to-date technology of the Lufthansa Technik Group in the Asia Pacific region.”

For Airframe Related Components (ARC), the capability build-up included several new components by the end of 2017. Among others, radomes of the A380 and the A330 aircraft, the GEnx-2B fan cowl and the entire nacelle of the PW4168 including inlet cowl, reverser, fan cowl and plug are joining the portfolio. The A320neo nacelle capability will be built up within 2018 as well.

Having performed 45 on-site inspections and repairs in the APAC region, 2017 was a successful year for the mobile engines services team of Lufthansa Technik Shenzhen as well. Engine types covered are CFM56 and IAE V2500, with capability for the PW1100 to be built up in 2018.

With a clear focus on increasing Boeing 787 and Airbus A350 capabilities, Lufthansa Technik Shenzhen has established its own component pool, in addition to having full access to OEM pooling worldwide. The portfolio is rounded off by transport management solutions for the aviation and MRO industry. Complementing these services, Lufthansa Technik Shenzhen provides customized warehousing and stocking solutions.

Lufthansa Technik Shenzhen holds approvals from the Civil Aviation Administration of China (CAAC), the U.S. Federal Aviation Administration (FAA), the European Aviation Safety Agency (EASA) and the responsible aviation authorities of almost all countries in the APAC region.

Technology News
All Nippon Airways signs Integrated Material Services (IMS) solution From Satair
All Nippon Airways (ANA) of Japan has signed a multi-year IMS contract with Satair for a long-term, fully integrated end-to-end supply chain package covering expendable material for the airline’s continuously growing 18-strong A320 family fleet, comprising A320CEO and NEO and A321CEO and NEO.

The service from Satair commenced in December 2017 and includes planning, sourcing, purchasing, logistics and inventory management covering some 15,000 part numbers with a possible increase in the part number scope to follow.

Toshiaki Kobori, Deputy SVP Engineering and Maintenance Centre, ANA stated: “We are very pleased to have signed this contract with Satair and look forward to folding out our relation over the coming years in the IMS setup. Our expectations are high and we trust that Satair will deliver.”

The coverage includes all expendables materials needs of ANA.

Stéphane Ginoux, President of Airbus Japan said, “By establishing a dedicated team at ANA, we have become closer and can provide the most responsive support in a timely manner to our long-standing customer in the country. Together with our experts from Satair, we will offer the most comprehensive solutions and after-services to the airlines.”

Bart Reijnen, Chief Executive Officer of Satair commented: “We are delighted to welcome ANA to the growing number of Asia-Pacific carriers who have selected our IMS product offering. This is our first long-term commitment with ANA on the Airbus aftermarket and the airline will benefit strongly from having a significantly reduced cost of ownership with a guaranteed performance level provided by Satair.”

He added: “Airlines want to focus on their core business of serving passengers’ needs and entrust operational support activities such as materials management to experts. Satair provides integrated solutions by breaking old traditions and partnering up with our customers and OEM partners. Our solutions are tailor-made for the supply chain requirements of airlines, MROs and OEMs who want to outsource their non-core activities – such as material management – to ensure total availability where and when they need it. Satair is well placed in the market to exceed ANA’s expectations to provide this service in a great long-term partnership. We look forward to earning the trust in us over the many years to come.”

IMS was introduced by Satair as a strategic initiative to respond to customers’ growing requirements for a fully flexible and integrated expendable supply solution in a collaborative approach and service for all aircraft types. With IMS, Satair is directly involved in supporting the aircraft availability, which goes well beyond a traditional customer-supplier relationship.

People News
K&L Gates adds banking and asset finance counsel to Singapore Office
The Singapore office of global law firm K&L Gates LLP welcomes Kamil Gerard Ahmed as a counsel in its banking and asset finance practice. Ahmed joins K&L Gates from Clifford Chance LLP, where he was a senior associate in the asset finance practice of their Bangkok and Singapore offices.

Ahmed has worked in several jurisdictions, including the United States (New York), United Arab Emirates (Abu Dhabi), Canada (Montreal and Toronto), and Thailand, bringing to the firm a wealth of international experience and practical insights.

Specifically, he has extensive experience advising on the financing, leasing, trading, and repackaging of aircraft and equipment assets, including tax driven structures. He also regularly advises on a broad variety of other financing and structured transactions, including secured and unsecured financings, syndicated lending, acquisition financings, project financings, and export credit financings, as well as on U.S. capital markets and corporate/M&A transactions. His client base includes financial institutions, borrowers, issuers, lessors, operators, equity participants, and credit enhancers based in the Asia Pacific, the Middle East and the Americas.

“We are delighted to welcome Kamil to the firm,” said Raja Bose, administrative partner of K&L Gates’ Singapore office. “His addition to the Singapore team will further develop our expanding banking and asset finance practice in the region and his experience will provide opportunities for additional collaboration with our clients across a number of different sectors.”

Ahmed will work closely with K&L Gates partner Robert E. Melson, Jr., a leader of the firm’s aircraft finance practice and one of the coordinators of K&L Gates’ firmwide banking and asset finance practice group.

Melson stated: “We are very excited to have Kamil join our global aircraft finance and leasing team. He will be integral to providing top-notch advice to our clients doing business in Asia.”