Across the duration of the project, ACC Aviation carried out several key activities:
Financial Modeling. ACC Aviation developed a robust financial model, forecasting the fund’s economics, future aircraft values (calculating actual and synthetic values against lease return conditions and maintenance reserves), projected investor returns, lease management fees and fund expenses, debt amortization schedule and various financing ratios.
Financing Support. Alongside the development of the financial model, ACC Aviation provided opinion letters confirming expected aircraft residual values at the end of the lease term, including aircraft redelivery conditions and forecasted maintenance reserve balances.
Contract Advisory. After successfully launching and capitalizing the fund, the client required further specialist support in negotiating various contracts, including aircraft lease agreements, engine power-by-the-hour agreements, OEM delivery concessions, side letters, and multiple BFE & SCN selection requirements. ACC Aviation advised on all of these contracts.
The fund was launched and successfully capitalized in line with the client’s objectives. It has since expanded its portfolio to more than 50 new-generation narrowbody and widebody aircraft, receiving several awards for its innovative capital structure and leasing transactions. ACC Aviation continues to support the client on various technical matters, including portfolio valuations and technical inspections.
