Steven T. Gaal, Managing Partner & Co-Founder of SkyWorks Holdings, LLC, in his article “Assessing reduced lease collateral protections”, discusses how the provision of maintenance reserve requirements can be impacted by strong competition for aircraft assets.
Gaal notes that the current high level of competition for aircraft assets is resulting in reductions in leasing collateral protections for certain new leasing arrangements. Gaal makes the case that certain key tools such as asset selection, active monitoring, establishment of portfolio concentration policies and structuring of lease collateral protections are prudent practices for mitigating credit and other risks in aircraft leasing.
An electronic version of the article can be found at the following URL:
About SkyWorks Holdings, LLC:
SkyWorks Holdings provides a full complement of asset management, investment banking, and management consulting services globally to the aviation industry through its subsidiaries. SkyWorks Leasing, which operates the firm’s Asset Management Group, is a leading independent aircraft remarketing, asset management, and technical advisory firm serving owners and operators of commercial aircraft. SkyWorks Capital, which operates the firm’s Investment Banking and Management Consulting Groups, is a premier aviation advisory and investment banking firm with key activities including aircraft order campaigns, arrangement of lease and debt financing, M&A related aircraft evaluations, restructuring advisory services, and network and fleet planning. SkyWorks’ services have encompassed over 10% of the global commercial jet fleet.
SkyWorks is headquartered at 283 Greenwich Avenue, Greenwich, CT. 06830, Tel. 203-983-6677. www.skyworkscapital.com
Steven T. Gaal