Aviation Global Leaders

In this interview, Joe O’Mara, Head of Aviation Finance at KPMG speaks to Austin Wiley, CEO of Sky Leasing in Dublin in late-November.

Sky Leasing is an alternative asset manager, which focuses on new and midlife aircraft, primarily acquiring aircraft through sale and leaseback. It has around four billion assets under management. Wiley has over 15 years of leasing industry experience and was named CEO in 2019. Wiley was president and co-founder of Sky Aviation Leasing International Limited, which originated a fleet valued at $3 billion and was sold in September 2018.

Wiley shares his thoughts on how the engine situation has impacted airlines and lessors. In this interview, he discusses the evolution of investors showing an interest in the aviation industry.

This discussion is the tenth to be released in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.

In the latest interview, Avolon CEO Andy Cronin speaks to Joe O’Mara, Head of Aviation at KPMG Ireland, in Dublin in late-November 2023.

Avolon is one of the largest aircraft leasing companies in the world with a fleet of just under 900 aircraft. It has sold over 400 aircraft over the last decade, realising over $750 million in trade gains. The company recently ordered 140 additional aircraft from Boeing and Airbus in December 2023. Cronin was appointed as CEO in October 2022, having previously served as part of the founding team and CFO since 2010.

In this interview, Cronin shares his opinions on airline customer performance post-pandemic and how it has evolved in 2023. He also discusses how the supply issues have impacted Avolon.

This discussion is the ninth to be released in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.

In this interview, Norman Liu, President and CEO of Nordic Aviation Capital, speaks to Kieran O’Brien, Head of Aviation Advisory at KPMG Ireland, in Singapore in early November 2023.

Nordic Aviation Capital is one of the world’s leading regional lessors. The company completed a restructuring in 2022, shifting its strategy and resizing its fleet. It is also expanding its fleet base into larger narrowbody aircraft. Liu was named head of the company in October 2021, as the pandemic was beginning to release its grip on the aviation industry. Prior to this position, Liu served as a senior advisor to Nordic since May 2019.

Liu shares his thoughts on global issues impacting the industry and the need for great world leaders to solve them. In this interview, he also discusses the labour shortage and powder metal contamination leading to the current supply issues.

This discussion is the eighth to be released in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.

In this interview, James Meyler, Chief Executive Officer, ORIX Aviation, speaks to Joe O’Mara, Head of Aviation Finance at KPMG Ireland, in Dublin in mid-November 2023.

ORIX Aviation is a global operating lessor and is a subsidiary of ORIX, one of Japan’s largest financial institutions. ORIX Aviation has a fleet of around 210 aircraft worth around $8 billion and have a 30% stake in Avalon. The company has executed over 190 aircraft transactions valued in excess of $43 billion in the full year of 2023. Meyler has been at the head of the company since 2018 and has helped oversee the company’s successful $5 billion worth of aircraft sold to over 80 Japanese Operating Lease investors in the last five years.

Meyler shares his thoughts on customer performance over the course of 2023 and issues facing the industry as it contends with a post-Covid world. As supply chain manufacturing issues continue, Meyler gives his opinion on the state of the supply chain and order book delivery stream.

This discussion is the seventh to be released in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.

Ahead of the publication of the completed Aviation Global Leaders Report 2024 in tandem with the Airline Economics Growth Frontiers conference in Dublin in January 2023, Airline Economics and KPMG are releasing a series of video interviews with industry experts that were conducted between October to the end of November 2023.

In this latest interview, Robert Korn, president and chief executive officer at Carlyle Aviation Partners, speaks to Joe O’Mara, Head of Aviation Finance at KPMG Ireland, in New York City in mid-October 2023.

Carlyle Aviation Partners specialises in the management of commercial aircraft and engines. The company, which was founded by Robert and Bill Hoffman in 2002 before selling to Carlyle in 20127, now has $11.4bn assets under management at end September 2023, with 387 owned or managed aircraft, on lease to 116 airline customers in 56 countries. Carlyle Aviation also has an aviation lending business that finances pre-delivery deposits. The business has two primary offices in Dublin and Miami, with one opening in Singapore soon, and 130 employees globally.

In the interview, Robert discusses the strong recovery of the airline industry, the company’s unique funding strategy compared to other balance sheet lessors, and his views on the wave of consolidation in the leasing sector and thoughts on the lingering impact of supply chain disruption.

This discussion is the sixth to be released in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.

Ahead of the publication of the completed Aviation Global Leaders Report 2024 in tandem with the Airline Economics Growth Frontiers conference in Dublin in January 2023, Airline Economics and KPMG are releasing a series of video interviews with industry experts that were conducted between October to the end of November 2023.

In this latest interview, Firoz Tarapore, Chief Executive Officer, DAE Capital speaks to Kieran O’Brien, Head of Aviation Advisory at KPMG Ireland, in Singapore in early November 2023.

Dubai Aerospace Enterprise (DAE) is a global aircraft lessor via DAE Capital with a fleet of 550 owned, managed and committed aircraft and an engineering business, DAE Engineering, which owns Joramco, the airframe maintenance, repair and overhaul solutions provider.

In the interview, Firoz shares his thoughts on the impact of rising interest rates on lease rates and the cost of debt, as well as his belief that scale for lessors has become even more critical in the new operating environment and that opportunities remain for further in organic growth among the top tier of leasing companies.

This discussion is the fifth to be released in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.

The heightened interest rate environment has increased the cost of debt for everyone but this has particularly hit hard those companies without the cushion of an investment grade rating. Banks are competing hard for those tier one names with young equipment to finance with those smaller lessors still without access to the asset backed securitisation market, which remains economically unattractive for aviation assets, considering the sale of aircraft assets stimulating the market for mergers and acquisitions.

Ahead of the publication of the completed Aviation Global Leaders Report 2024 in tandem with the Airline Economics Growth Frontiers conference in Dublin in January 2023, Airline Economics and KPMG are releasing a series of video interviews with industry experts that were conducted between October to the end of November 2023. In 30-plus interviews, these high-flying executives unpack their experiences from the past 12 months and cast their visionary gaze into the short- and long-term horizons of the industry's future.

In this interview, Greg Lee, Global Head of Transportation Banking, Goldman Sachs, speaks to Joe O’Mara, Head of Aviation Finance at KPMG Ireland, in New York in mid-October.

Goldman Sachs has a long history in aviation finance and works on all products from M&A and strategic advisory to large, structured aircraft financing for airlines and leasing companies. The bank has been involved in and structured many of the most significant and innovative aviation finance transactions.

In the interview, Greg shares his thoughts on the macroeconomic environment and its impact on the aviation industry, as well as insights into the direction of aviation finance heading into 2024.

This discussion is the fourth to be released in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.

Many airlines have recorded record profits in 2023 capitalising on sustained demand for air travel. However, costs are rising steadily as inflation bites. Wages are rising with airlines bearing the brunt of wage inflation as well as a scarcity of trained labour force, especially pilots. Rising interest rates are also adding to cost pressures, which will impact those airlines that have not begun to reduce the debt stack built up during the pandemic.

Aircraft leasing companies are enjoying unprecedented levels of demand with the majority of airline customers opting to extend existing leases due to the short supply of new aircraft in the market. Lessors are saving on transition costs and retaining valuable customers while extending useful lives of older aircraft. Meanwhile, lessors are also selling aircraft at historically high values.

Against this backdrop, Airline Economics and KPMG have kicked off their global “state of the market” review of the aviation industry with interviews with aviation market leaders held around the world. In 30-plus interviews, these high-flying executives unpack their experiences from the past 12 months and cast their visionary gaze into the short- and long-term horizons of the industry's future.

Ahead of the publication of the completed Aviation Global Leaders Report 2024 in tandem with the Airline Economics Growth Frontiers conference in Dublin in January 2023, Airline Economics and KPMG are releasing a series of video interviews with industry experts that were conducted between October to the end of November 2023.

In this interview, Aengus Kelly, Chief Executive Officer, AerCap speaks to Joe O’Mara, Head of Aviation Finance at KPMG Ireland, in Dublin in late November 2023.

AerCap is the largest aircraft leasing company in the world with a portfolio of 1,733 aircraft, 1,000 engines and 300 helicopters, with 380 aircraft on order, as of Q3 2023. Aengus Kelly has been at the helm since 2011 and has presided over a phenomenal growth period for the company which acquired International Lease Finance Corporation in 2014 and GECAS in 2021.

In the interview, Aengus shares his thoughts on record airline profits as well as the impact of rising cost base and capacity constraints on future growth. As GE exits the business with the sale of its final AerCap shares gained as part of the GECAS sale, Kelly shares his insights on managing the smooth exit of a major shareholder.

This discussion is the third to be released in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.

Aircraft leasing companies are enjoying the period of rising asset values and lease rates driven by tight supply but equally would rather the provision of aircraft was more stable and aircraft deliveries were more certain to better serve their airline customers, which are struggling to service passenger travel demand that continues to rise.

Airlines are beginning to report earnings expectations for a record fourth quarter 2023, building on a solid year of growth and profitability. However, many are also braced for the challenge to sustain capacity levels in the wake of engine and other issues taking aircraft out of service, with production levels still slow to ramp up due to lingering supply chain issues.

Higher interest rates, inflation and heightened geopolitical tension are creating a challenging operating environment for airlines and lessors alike.

At this time of building headwinds, and for the sixth year running, Airline Economics and KPMG have kicked off their global “state of the market” review of the aviation industry with interviews with aviation market leaders held around the world. In 30-plus interviews, these high-flying executives unpack their experiences from the past 12 months and cast their visionary gaze into the short- and long-term horizons of the industry's future.

Ahead of the publication of the completed Aviation Global Leaders Report 2024 in tandem with the Airline Economics Growth Frontiers conference in Dublin in January 2023, Airline Economics and KPMG are releasing a series of video interviews with industry experts that were conducted between October to the end of November 2023.

In this interview, John Plueger, Chief Executive Officer, Air Lease Corporation speaks to Kieran O’Brien, Head of Aviation Advisory at KPMG Ireland, in Singapore in early November 2023.

Founded in 2010 by Steven Udvar-Házy and John Plueger, Air Lease Corporation (ALC) is a publicly-traded, investment grade rated aircraft lessor with a portfolio of around 900 aircraft that are owned, under management and on order.

In the interview, John Plueger shares his positive outlook for the airline industry on the back of a return of travel, including impressive demand for premium travel for legacy carriers. ALC has placed all of its 2025 widebody deliveries due to the historic high demand for lift due to the equally as historic tight supply of aircraft; and the lessor is also benefitting from a rise in aircraft values and lease rates are also increasing. However, John shares that he would prefer to have access to more aircraft to better serve his customers. He also notes that such bullish demand is tempered by the headwinds building in the sector notably that geopolitical issues are at the forefront of many boardroom discussions, stressing the need to plan for unpredictable events.

This discussion is the second to be released in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.

Airlines have enjoyed a sustained period of profitability over the past 12 months driven by “revenge” travel demand and pressures on capacity bumping up yields. Leasing companies are also benefitting from the capacity shortage with lease extensions up to 70-90 per cent and higher lease rates, as well as record gains on sales. Higher interest rates have tightened pricing for financing for the smaller companies and lesser credits, while manufacturers are grappling to increase production despite ongoing supply chain issues and entry-into-service and manufacturing defects grounding aircraft around the world.

In this environment, and for the sixth year running, Airline Economics and KPMG have kicked off their global “state of the market” review of the aviation industry with interviews with aviation market leaders held around the world. In 30-plus interviews, these high-flying executives unpack their experiences from the past 12 months and cast their visionary gaze into the short- and long-term horizons of the industry's future.

Ahead of the publication of the completed Aviation Global Leaders Report 2024 in tandem with the Airline Economics Growth Frontiers conference in Dublin in January 2023, Airline Economics and KPMG are releasing a series of video interviews with industry experts that were conducted between October to end November 2023.

In this interview, Peter Barrett, Chief Executive Officer, SMBC Aviation Capital speaks to Joe O’Mara, Partner and Head of Aviation Finance at KPMG Ireland, in Dublin in late November 2023.

In the interview Peter Barrett discusses the performance of the airlines over the past 12 months, and takes an optimistic look ahead to the coming year noting a return to more familiar challenges facing the industry including higher interest rates, inflationary pressures and the ongoing pressure on capacity caused by lingering OEM supply chain issues.

This discussion is the first in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.