Will a five-year-old Airbus A320 be worth US$ 26 million in the year 2015? David B. Fate is executive vice-president and head of Transamerica Aircraft Finance Group. He and his staff are specialists in financing aircraft. It is crucial for them to know the value of the assets for which they are lending money – not only the current value, but also their value in up to 20 years’ time.
Fate and his staff receive a constant stream of financing proposals. Airlines such as Continental, US Airways, TWA, Northwest Airlines and SAS are on his customer list, along with a number of regional airlines. In some cases, a complex transaction can take weeks to complete. During that time, the airlines credit-worthiness is carefully assessed, and a third-party evaluation made of the collateral value throughout the entire credit period.
Avitas as a partner
From Transamericas offices in Dallas, Texas, the analysts keep an eye on much of the U.S. and overseas aircraft industry. Aviation is a sector with few players, and one in which everyone typically knows everyone else, but it is also an industry with huge investments and values, says Fate. We specialise in financing, but to protect our investments, we need technical assistance from experts who can carry out everything from the assessment of an airlines maintenance operations to an evaluation of the technical aspects of an aircraft. We get that kind of expertise from Avitas.
To Transamerica, Avitas is an important business partner, and the company makes use of a wide range of Avitas services. Says Fate, We make a lot of use of the Avitas Blue Books. These, and other Avitas services, enable us to do our work efficiently. Time is our most valuable resource, so our decisions rest on Avitas opinions.
Transamerica
Transamerica Aircraft Finance Group is a unit of Transamerica Equipment Financial Services Corporation, the equipment financing subsidiary of Transamerica Corporation.
Transamerica is an insurance and financial services leader, and wholly-owned subsidiary of AEGON N.V, which has more than US$200 billion in consolidated assets.
Transamerica Aircraft Finance assists companies in acquiring assets, and refinancing or restructuring transactions by providing loans and leases secured by aircraft, aircraft engines and related equipment.
AVITAS
Wholly owned by DNV, Avitas is a full-service consulting company providing a wide range of advisory and technical services to airlines, aircraft manufacturers, industry suppliers, maintenance providers, aircraft lessors and lenders, legal counsel and government bodies.
Avitas is headquartered in Chantilly, Virginia, with offices in Miami and London. Its senior staff members have specific hands-on aviation industry experience in such areas as airline management, marketing, planning, operations, maintenance, engineering and aircraft financing. Hence, the company has both practical and theoretical knowledge of the complex aviation industry.
Avitas expertise covers a broad range of aviation disciplines, providing assistance and counsel in the following areas:
- Technical Consulting
- Maintenance and Engineering
- ICAO Regulatory Compliance
- Valuations
- Assistance to Aircraft Lessors and Lenders
- Assistance to Legal Counsel
- Publications
- Strategic Planning
- Special Studies
- Competitive Situation Analysis
- Operations Support
Avitas publications, respected throughout the industry, include:
BlueBook of Jet Aircraft Values
A reference volume containing base value, market value and future base value forecasts for over 75 Western-built jet aircraft including regional jets. The value matrix is accompanied by an informational page which describes briefly the type, its production history, engine options and summary specifications such as dimensions, capacities, takeoff weights and performance.
BlueBook of Commercial Turboprop Aircraft Values
Identical in format to the BlueBook of Jet Aircraft Values, this reference contains values for some 34 turboprop-powered aircraft in commercial service.
BlueBook of Jet Engine Values
The companion volume to the BlueBook of Jet Aircraft Values, this compendium contains values for all engines with commercial jet applications. It includes a brief market summary for each engine series, photo, fleet statistics, current market value, base value and future base values for the next 10 years.
Aircraft Block Hour Operating Costs & Operations Guide
This guide provides direct operating costs for flying operations and maintenance, and average aircraft utilisation per day for various operational indices such as departures and seat mile operating costs for most major jet aircraft and several turboprop aircraft.
Global Outlook for Air Transportation
Contains the economic outlook, traffic outlook and aircraft outlook for the next 20 years, as well as special reports on significant current issues and trends affecting commercial aviation.