Ed Wegel

Cirium Ascend Consultancy’s Value Review Board has completed an extensive review of the ATR Family. ATR 72-600 Market Values increased by as much as 11% while lease rates on new-build examples went up by 3%. While storage levels remain high at 20% indicating further room for improvement, actual aircraft marketed for sale or lease remain at low levels. ATR 72-500/210 MLRs increased by as much as 31%, while Bulk and LCD freighter MVs improved by up to 12%, following analysis on the P2F market dynamic (including retirement trends) and observation of recent conversion costs. On the ATR 42, the -600 saw MVs increase by as much as 12% (depending on vintage), while the 42-500 improved further by as much as 49% from a low base.

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Aviation & Aerospace✈️ Azul Cargo Express secures $500M from bondholders, Aeromexico launches a $1.1B bond offering, and Boeing initiates a $19B share sale. We are noticing a subtle trend that the participants in the Aviation industry are signalling. Post-pandemic, airline revenue dropped by over 50% globally. International Air Transport Association (IATA) stated that industry debt exceeded $650B in 2023, prompting alternative capital measures. Few of these recent deals reflect a concerted effort to stabilize balance sheets and prepare for upcoming growth. At Avon River Ventures, our expertise includes working with aviation and manufacturing firms and restructuring debt and cap tables with our structured financing approach. If you have further inquiries, please DM me—I’d love to continue the conversation. #Aviation #Aerospace #Financing #DebtMarkets #Investment #BusinessStrategy https://lnkd.in/gDxXC5Ff Reference: Julie Johnsson and Siddharth Vikram Philip (Bloomberg)

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Cirium Ascend made changes to Airbus A320ceo family Market Values and Lease Rates effective July 27th. Double-digit percent increases are supported by limited supply of new narrowbody aircraft and narrowbody engine maintenance issues. Values for older A320ceo family aircraft are pushed up by short-term demand for serviceable “flyers” competing with demand for spare engines and airframe parts.

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U.S. regulator orders inspections of 787 cockpit seats The U.S. Federal Aviation Administration (FAA), in a schedule published on August 21, is requiring airlines operating 787s to inspect the type’s pilot seats for missing or cracked caps that cover a switch for cockpit seat adjustments. The safety measure has been introduced after an incident aboard Chile’s Latam Airlines last March. During a flight from Australia to New Zealand, the captain’s seat moved forward and hit a switch that disconnected the aircraft’s autopilot system. As a result, the 787 rapidly descended 400 feet, or 120 meters, before the co-pilot regained control of the aircraft, a Chilean preliminary report states. The FAA directive creates another operational delay for 787 operators, including airlines in the Asia-Pacific. Top of the list is All Nippon Airways with an in-service fleet of 83 787s. https://lnkd.in/ge6Cz-g6

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Of all the news articles reporting on Boeing's withdrawal of the MAX 7 exemption application, this Reuters article is the most interesting as it details Senator Tammy Duckworth's comments. The senator disclosed that in her call with Boeing CEO David Calhoun regarding Boeing's withdrawal decision, he thanked her for pushing the company to do what is absolutely the right thing to do. The thing is, Boeing had insisted up till 28th of June that it would not withdraw the exemption application and that even with the exemption there is no reduction in flight safety. What this demonstrates is the true values of Boeing's senior leadership. Boeing still insist today that it was right to apply for the exemption and only withdrew the application under public pressure. This is despite two Max 8 crashes causing 346 fatalities, countless defects in delivered 737 and 787 aircraft and the plug door dislodging from the Alaskan Max 9 aircraft. Values and integrity matter regardless of company size and revenue. Executives exerting pressure on regulatory staff to compromise their professional integrity is not a phenomena unique to Boeing and neither is it limited to executives who are not engineers. The Max 8 saga happened under Dennis Muilenburg's watch. Culture eats strategy for breakfast; values form the basis of culture. The erosion of values and integrity is how great companies die.

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The DOT's final rulemaking for "critical ancillary services" has just been released. The full text is available at the link below. A summary of major provisions begins on page 4. In brief: - The final rule applies to U.S. air carriers, foreign air carriers, and ticket agents (excluding corporate travel agents). - Critical ancillary services are defined as checked (1st and 2nd) bags, carry-on bags, and change fees. - The big requirement is this: At the point the fare is displayed in the booking path, so also must bag fees and change fees be displayed. - Terms and conditions for the above must be made available prior to completing the booking. - Display to the consumer must occur before 30 April 2025. There's much more fine print, in fact the rulemaking runs 186 pages. It will take months for the industry to comprehend these provisions. It seems to favor the branded fare approach. Those of you who read my reports already know I'm a fan of branded fares. DOT rulemaking page: https://lnkd.in/giXkwRpq #checkedbags #ancillaryrevenue

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Ramaz Urushadze. Aircraft Operational Reliability In Formulas. Quick Reference Handbook. Chapter 1 – Aircraft Utilization. Total Records: Formula 1.1 Sincerely, Ramaz avramaerospace.com #etops #aircraft #aircraftreliability #aviation #airline #operationalreliability #aerospacereliability #reliability #aircraftmaintenance #aircraftmechanic

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Aviation alt lender volofin anticipates tapping the aircraft loan ABS again in 2025 while aircraft and engine lessor WNG is in the process of evaluating second-round bids for a portfolio of mid-life aircraft and engines. Read Editor Dickon Harris latest quick take here➜ https://shorturl.at/KBZBc #aviationfinance #airlines #lessors #investors #aircraft #leasing #volofin

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Review of Aircraft Lease Conditions for Landing Gear & APU: Protecting Asset Value Lease agreements for aircraft components like landing gear and the APU (Auxiliary Power Unit) include strict return conditions. These conditions are designed to safeguard the lessor's investment in areas such as: Landing Gear Conditions Serviceability: The landing gear must be clean, free of leaks exceeding Aircraft Maintenance Manual (AMM) limits, and in an overall airworthy condition. Remaining Gear Life: A minimum of one C Check interval of life must remain before the next scheduled overhaul according to the Maintenance Planning Document (MPD). This protects the lessor from potentially high-cost, overhaul expenses – note how the interval is based on MPD and not AMP (Aircraft Maintenance Program). Replacement Parts: Any components replaced during the lease must not have lower Life Limited Part (LLP) limits than the gear, which ensures consistency and avoids replacement costs for the lessor – the lowest LLP item is the limiter. APU Conditions The APU must be fully functional, passing borescope and magnetic chip inspections while demonstrating maximum performance within AMM limits. These checks verify current health and help predict remaining life, preventing the lessor from inheriting a unit nearing expensive repairs or replacement. Record Keeping Requirements Maintenance & Inspections: The lessee must provide detailed, English-language records of all maintenance, inspections, and modifications, including "Dirty Fingerprint" records. These are the original technician-certified records ensuring each Airworthiness Directive (AD) requirement was met on schedule. APU Shop Visit Records: Reports, release certificates, AD status, Service Bulletin status, LLP status, and full traceability are essential in tracking the APU's history. This is crucial due to LLP cycles where relevant, which often dictate expensive overhauls. Cost and Time Impacts Non-compliance with these conditions can result in penalties for the lessee at lease termination, such as the cost of necessary repairs, overhauls, or even replacement of components and insufficient record-keeping can lead to administrative delays during the return process, prolonging the delivery time. While "airworthy" is a minimum standard, "lease compliant" is often much stricter. These conditions go beyond safety, focusing on protecting the long-term value of the aircraft for the owner (the lessor) as minimum life shows and note how terms in the lease refer to the MPD and not the AMP. Follow us on LinkedIn to learn more and why not check out our course on Engines and Landing Gear where we look in detail at reviewing the LLP parts and their history https://lnkd.in/eQWQk5N #Aircraft #LLP #aviation #leasing #camo #ialta #aircraftengineer #mro #lessor #lessee #onlinelearing #mro #sv #ALS #turbine #overhaul

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Aircraft lease and financing update July 12, 2024 NCLT Orders Go First to Release Four ELF Aircraft Engines The National Company Law Tribunal (NCLT) has directed Go First to release four aircraft engines belonging to Engine Lease Finance (ELF) BV. This decision follows the submission by Go First’s resolution professional, indicating that the process of returning one engine to ELF BV has already commenced. The tribunal’s order is part of the ongoing corporate insolvency resolution process for Go First, which has faced significant financial challenges. This development highlights the complexities and legal challenges in the aircraft leasing and financing sector, particularly in cases of financial distress. The decision by NCLT underscores the importance of clear regulatory frameworks to protect the interests of lessors and financiers. As the aircraft leasing market continues to grow, such legal precedents will play a crucial role in shaping the industry’s future. https://lnkd.in/gjTVxjFi

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Sanjay Kaushik, 57, has been arrested in Miami for allegedly conspiring to export restricted U.S. aviation technology to Russia. Kaushik faces up to 20 years in prison for attempting to unlawfully ship sensitive flight control equipment, including a navigation system, under false pretenses, if convicted U.S. authorities are resolute in preventing critical technology from reaching hostile nations, with the case highlighting the ongoing commitment to national security. Details here - https://lnkd.in/euVdithS #aviation #aircraft #USA #miami #news #aviationnews #technology #nationalsecurity #aviationtechnology #russia #breakingnews #latestnews #aviationlife #aviationupdates #airlife #aviator #airtravel #AviationToday

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Aircraft lessors maintain continual focus on the preservation of asset values and minimizing cost exposure. At Jetaire, we understand the challenges that come with new AD mandates that require costly modifications and lengthy implementation, which can hinder the ultimate goal. The upcoming FTFR mandate is an unavoidable certainty that has the potential to negatively impact existing deal metrics, marketability, and the commercial life of your aircraft. That's why INVICTA™ from Jetaire offers the perfect solution to achieve compliance with the Fuel Tank Flammability Reduction (FTFR) rule, which will affect mid to late-life Airbus and Boeing aircraft in 2026. Learn more about how INVICTA™ can help you stay compliant and keep your most precious cargo safe here: https://lnkd.in/gKTmshfy #jetaire #saftey #fueltankignitionmitigationtechnology #INVICTA #airplanecompliance #aerospace #nitrogenalternative #FTFRCompliance

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Boeing 737-800 NG Market values were reviewed in September 2024 by Ascend’s Value Review Board and kept stable for mid to younger vintages. Market Lease Rates increased marginally, between 2-5% with 12-year old examples seeing the largest increases, suggesting that while demand still remains strong for the aircraft type there is a ceiling price which operators are willing to pay and we are now approaching that. However, at the older end Market Values were increased by up to 12% as Part Out Values have increased due to the strong demand for the CFM56-7B engines.   Boeing 737-700 and -900 family Market Values were also reviewed and broadly follow a similar pattern of rising Part Out Values resulting in increases to the older end, and stability on the younger fleet. Market Lease Rates for the -700 and -900 fleet remain stable. For more details, please check Values Analyzer or reach out to us!

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CAE will increase its ownership stake in its existing SIMCOM Aviation Training joint venture by purchasing a majority of SIMCOM shares from Volo Sicuro for USD $230 million, subject to customary adjustments, to be financed with CAE’s existing credit facility and cash on hand. As part of the transaction, Flexjet, LLC, a related party of Volo Sicuro, will retain a minority stake in SIMCOM following the closing, expected to take place in the coming days. Additionally, CAE and SIMCOM will each extend their respective exclusive business aviation training services agreement with Flexjet and its affiliates by 5 years. CAE Inc SIMCOM Aviation Training Flexjet Alexandre Prevost   https://lnkd.in/ezKAnCUt #aviation #AviationNews #50skyshades #DailyNew #increase #ownership #stake #SIMCOMAviationTraining #extend #exclusive #BusinessAviation #training #agreement #Flexjet 

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FAA Powered-Lift Final Rule - An Overview This October, the FAA released a Special Federal Aviation Regulation (SFAR) that creates the first civil aircraft category since the helicopter: powered-lift. DART reviewed the 880-page final rule, summarizing the critical takeaways in a 3-page overview for the DART community. Access the summary document here: https://lnkd.in/g78x9uiY

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