Aircraft Valuation by David Yu

Author:David Yu
Language: eng
Format: epub
ISBN: 9789811567438
Publisher: Springer Singapore

4.2 Capital Markets, Sidecar, and Joint Ventures

Another change is the sources of the funding in aviation and aircraft leasing. Newer entrants providing both equity and debt capital have emerged such as large private, regional, and SOE conglomerates, insurance companies, and more creative onshore ABS like financing structures. These innovations will continue to drive the changing dynamics of the industry.

In addition, the trend toward the creation of new dedicated equity funds and the resurgence of sidecars and joint ventures has been a significant portion of growth especially involving Chinese companies. Sidecars are a form of joint venture which involves a capital source in a joint venture along with a more established aircraft leasing company, which creates benefits for both parties. These new funds include committed and announced from JVs constitute more than $26 billion in the aviation space since 2008 (D. Yu 2017). The latest example is Standard Chartered with their SDH Wings International Leasing Limited JV with Sichuan Development Holding and separately their establishment of an onshore China leasing platform in Tianjin DFTP.

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