Jan-Hendrik Tepper’s Post

The bankruptcy of Spirit Airlines, which had been feared for some time, became a reality when the company filed for Chapter 11. While there are probably some unique circumstances surrounding this, it is thought that the fundamental problems of the LCC business model have had a significant impact. It is becoming increasingly clear that the low-profit, high-cost nature of airline management is not suited to a business model based on high-volume, low-margin sales. https://lnkd.in/gbyr5GxJ

In the airline industry, despite having well-defined business opportunities, achieving operational success, and even effective operational management, failure is inevitable due to misguided or questionable business transactions, especially those made inattentively to obtain aircraft.

Buy, Lease, or Jet Card? For high-net-worth individuals and business owners, private aviation offers unparalleled convenience, efficiency, and flexibility. But how do you choose the right strategy? Buying a private jet is the ultimate investment in control and customization. Ownership means:   •     Complete flexibility: Your schedule, your rules.   •     Brand equity: Private jet ownership signals exclusivity and prestige. If resold, certain models and well-maintained jets can retain significant market value or even appreciate.   •     Tax advantages: Full or bonus depreciation can potentially offset a substantial portion of the purchase price, while business use may qualify for additional tax deductions. However, leasing or a jet card might be a better fit if:   •     You fly fewer than 200 hours per year.   •     You prefer lower upfront costs.   •     You value simplicity over the responsibilities of ownership. At Wilmington Trust, our team helps clients evaluate these options through the lens of their financial and lifestyle goals. We offer custom financing solutions through our private bank, assist in structuring ownership to maximize tax efficiency, and ensure your aviation strategy aligns seamlessly with your overall wealth plan. #PrivateAviation #WealthPlanning #BusinessTravel #TaxPlanning #PrivateBanking #WilmingtonTrust

After a failed attempt to merge with Jet Blue, Spirit Airlines filed bankruptcy under Chapter 11 of the Bankruptcy Code listing estimated assets and liabilities in the range of $1 billion to $10 billion each. The airline has already entered into an agreement with existing bondholders which is expected to reduce total debt. These same bondholders have also agreed to provide $300 million in debtor in possession financing to assist in continuing operations. https://lnkd.in/gfBCyTcq #bankruptcy #retail #landlords #chapter11 #chapter7 #reorganization #creditorsrights #debtorcreditorsrights #landlordtenants #ceosandofficers #ceosanddirectors #officersanddirectors

✈️ The Future of Aircraft Leasing: A Growing Investment Opportunity ✈️ With Chorus Aviation’s recent approval of the sale of its Regional Aircraft Leasing segment, we’re witnessing a pivotal shift in the aircraft leasing market. This strategic move highlights the increasing investor confidence in aviation leasing, which continues to grow as a reliable, high-yield investment option. Investors are placing significant capital in this sector, seeing the value in the stability and potential returns aircraft leasing offers—especially in the regional space. Stay tuned as more opportunities unfold! 🚀 #Aviation #AircraftLeasing #InvestmentOpportunities

Nordic Aviation Group files for bankruptcy? NO surprise, never member had a sustainable strategy, just going where the wind blows! -------- Nordic Aviation Group filed (04-Dec-2024) a petition with the court on 29-Nov-2024 to declare Nordica and Xfly bankrupt. Temporary receivers were appointed for Nordica and the court imposed a restriction on all transactions with Nordica's assets, as of 04-Dec-2024. The court will also appoint a temporary bankruptcy administrator for Xfly in the future. The majority of aircraft leased by Nordic Aviation Group were returned to the destination specified by the leasing companies. Nordic Aviation Group also returned aircraft owned by Transporti Varahaldus OÜ to Tallinn Lennart Meri Airport. The company's debts amount to EUR38 million, after deducting the value of assets.

**Navigating the Turbulence: Managing Aviation Assets During Airline Bankruptcy** With the recent news from Spirit, we wanted to take a moment to shed some light on what happens next. First, the aircraft aren't immediately coming out but, it's likely that there will be fleet reorganization. So, what happens when the aircraft begin redelivering to owners/lessors? Avtrac team members recently completed the recovery of aircraft from a smaller airline insolvency earlier this year, and there are a few key elements to keep top of mind when managing the redelivery of the aircraft. When an airline faces bankruptcy, the challenge of maintaining aircraft technical viability becomes a complex puzzle. It's not just about keeping planes in the air – it's about preserving value in a sea of uncertainty. Here are some key insights for managing aviation assets during airline insolvency: 📝Master the Paperwork: Thorough understanding of technical records is crucial. Every maintenance log, every certification matters. 🔧Coordinate Relentlessly: Ongoing maintenance doesn't pause for bankruptcy. Establish clear communication channels with all stakeholders. ✈️Stay Flexible: No two airline insolvencies are alike. Be prepared to adapt your strategies on the fly. We've seen how a well-managed technical program can be the difference between assets that retain value and those that become expensive paperweights. What's your take on this? Have you faced similar challenges in asset management during turbulent times? Share your thoughts below! #AviationIndustry #AssetManagement #TechnicalExpertise

Navigating Turbulence: GoAir's Insolvency and the Ripple Effects on the Indian Aviation Industry GoAir, rebranded as Go First, has been grappling with significant financial difficulties since filing for insolvency in May 2023. The airline cited losses due to faulty Pratt & Whitney engines, leading to the grounding of several aircraft and substantial financial losses totaling ₹10,800 crore. Amid these challenges, lessors have moved to reclaim their aircraft, complicating GoAir's operations further. Despite initial interest from various bidders, including billionaire Naveen Jindal and Easy My Trip's CEO Nishant Pitti, both parties have withdrawn their bids due to the complexity and financial instability of GoAir. The Wadia Group, GoAir's parent company, is exploring several revival strategies, but the future remains uncertain. Meanwhile, SpiceJet, led by Ajay Singh, faces its own set of challenges. The Supreme Court has ordered SpiceJet to clear outstanding dues of $1.25 million to Credit Suisse, while the Delhi High Court granted temporary relief by setting aside an order to repay ₹5.79 billion to former promoter Kalanithi Maran. Additionally, three lessors have initiated insolvency claims against SpiceJet over unpaid dues of ₹77 crore. These developments underscore the volatile nature of the aviation industry, where financial and operational hurdles can quickly cascade into broader crises. Stakeholders and investors remain on edge, anticipating the next steps in the restructuring of GoAir and the financial maneuvers of SpiceJet. Stay tuned as we continue to monitor this unfolding story and its implications for the Indian aviation market. #GoAir #SpiceJet #AviationIndustry #Insolvency #FinancialChallenges #LegalBattles #AirlineIndustry .

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