Photo of Simon Spells

Navigating successful exits in investments is a strategic endeavour that requires planning, and adaptability to market conditions. This is the case across industries, including the aviation space. As market conditions and investment landscapes evolve, firms and asset owners in this space are increasingly exploring alternative exit strategies to maximise returns and mitigate risks.

Traditional Exit

The successful issuance last year by Ashland Place Finance of ASHLAND 2023-1, the aviation loan asset backed securitization (ABS), together with the engine ABS, WEST VII, issued by Willis gave glimmers of hope to aircraft lease ABS market participants. This year’s BJETS 2024-1 by Global Jet Capital marks a further significant development for the aviation

It is now a unanimous conclusion that the COVID-19 pandemic has resulted in the worst ever crisis in the history of the aviation industry. In 2020, we saw major airlines such as Avianca, LATAM, Thai Airways, Virgin Atlantic and Virgin Australia enter into formal insolvency or restructuring proceedings, with the majority of other airlines being kept afloat by a combination of government aid, cost-cutting measures and concessions from shareholders, employees, bondholders, lessors and other creditors. As we enter the spring of 2021, the inevitable question is: what will happen next? Which airline may fail and which will be well-positioned to benefit from an eventual recovery in international air travel?
Continue Reading Hoping for the best but preparing for the worst