Managing aircraft Intelligence Investment guidance Delivering value Analysis Technical expertise Operating globally Member of ISTAT UK CAA Approval No. UK.MG.0622 www.iba.aero
Established in 1988, IBA is a leading independent aviation consultancy advising a broad mix of lessors, operators, financiers and investors. Operating globally, we inform decision making and support operations across the aviation spectrum. Whether supporting strategic investments, managing aircraft, advising on expansion, or driving efficiency improvements, our mix of intelligence gathering, analysis, proprietary data, technical expertise and decades of aviation experience delivers value across aviation opportunities and challenges. Enhancing decision making EXIT IPO readiness Sell side advisory 6 Remarketing 1 SELECTION Market analysis Competitive intelligence 2 OPPORTUNITY Due diligence Valuations Benchmarking ADDRESSING ISSUES Risk monitoring Litigation and dispute support 5 3 RUNNING THE ASSET Transition management Maintenance and cost analysis Technical and regulatory advisory 4 THE DEAL Negotiation Risk assessment Across the deal cycle
Advisory Commercial Aviation Intelligence Our advisory practice sits at the intersection of our data, technical and industry experience. As such we are able to provide a range of advice and solutions in relation to complex and strategic aviation challenges and opportunities: be that selecting a fleet, removing costs, or better understanding a market, an operator, or competitor. The advisory team draws upon the varied backgrounds at IBA and combines our aviation experience with our strategic analysis, business intelligence and research expertise plus access to proprietary data. This enables us to drive creative answers to difficult questions. Recent projects include: The provision of data and intelligence aids critical decision making and supports investment decisions across commercial aircraft, engines and other aviation assets. With a unique dataset combining over 25 years of historical asset values, maintenance data from hundreds of aircraft and a team of expert analysts, IBA provides critical data to inform investment and financing decisions, improve efficiency and visibility, plus reduce operational risk. IBA is one of a handful of firms with multiple ISTAT appraisers, the established benchmark for aviation valuations. Recent projects include: Saving an airline US$40m in relation to a challenging fleet selection decision. Delivering maintenance adjusted values on 300+ aircraft as part of an acquisition. Gathering evidence and conducting complex modelling to achieve a settlement many millions of dollars less than an original claim in relation to litigation. Highlighting over US$150m of immediate savings around warranty and maintenance costs to an airline flying c.80 narrowbodies. Appraising airport slots for a large legacy carrier. Gathering intelligence in relation to operators based in politically and economically sensitive destinations.
Asset Management Leasing is fluid and complex. With decades of experience and a portfolio totalling over 100 aircraft and a value of US$3bn+ under management, IBA is ideally placed to manage your aircraft or engines, provide independent insight alongside your current management programme, and deliver critical intelligence around risk and maintenance. The leasing cycle Managing the process 1: Pre-purchase 2: Running No other provider of aircraft management services has IBA s combination of independence, breadth of expertise and depth of data. IBA ensures the lease runs smoothly, risk is minimised and cost saving or efficiency opportunities are maximised. Recent projects include: 4: Transitioning 3: Monitoring Saving a lessee US$6m in maintenance and penalty payments in relation to redeliveries. Reducing maintenance reserve claims by 80% by demonstrating the work performed was not to a sufficient level. Advising new entrants on fleet mix, suitable lessees and sources of finance. Do you RETURN or EXTEND? IBA analyses numerous factors including lease rates and liquidity, economic factors such as oil price outlook and the costs around meeting redelivery conditions.
Aircraft operating leasing: the transition management minefield ENGINES Months before lease end 24 21 Always complex to assess, forecast and maintain given the myriad of variables. Manage cycles and shop visits more strategically. Late decisions on engine build WILL lead to increased costs and late redelivery. 18 Modifications & Repairs DOCUMENTATION Records, where are they? 6 Use of PMA/DER repairs. Local approved mods versus OEM sourced data. Assess replacement options Engines: assess condition 13 20 12 10 Confirm lease return, engage lessor 15 Interior & Configuration 9 3 Top 10 contributors to transition challenges 1. Poor contract drafting around redelivery conditions, lessor inspection rights and disputes processes. 2. Lack of lessee planning and early engagement with lessor. 3. Inadequate focus on assets during operations. 4. Lessee operational demands consuming redelivery resource. 5. Decentralised, missing or incorrectly completed records. 6. Underestimation of the total workload. 7. Discovery of additional work required during maintenance input. 8. Lack of lessor appetite for returned aircraft. 9. Engines failing final borescopes carry out precautionary borescope much earlier. $ $ 0% 200% 0 Late delivery lease premium Dependent on contract $3.9m Average overspend at lease end $1.65m 10. Underestimating lead times and lessor expectations.
Engines IBA recognises the importance of using the right blend of technical and market knowledge in understanding the market value of all critical aviation components. None can be as important as for the aero engine. We pride ourselves on being able to provide accurate value opinion and commercial advice on all aspects of engine management and are especially experienced at managing engine redeliveries. From selection and EIS to disposal, IBA understands the complex elements relating to the residual value performance of engines. Through our positive working relationships with engine manufacturers and lessors, IBA has established comprehensive datasets on all engine variants that are currently fitted on commercial passenger aircraft. This enables us to accurately determine engine values, accounting for replacement price, age, market condition, depreciation based on resale history and useful economic life. Exiting Manufacturing Managing Investing Recent projects include: Informing the selection of engines incorporating independent data relating to efficiency and maintenance costs. Saving a party in excess of US$1million by ensuring work performed and associated claims were consistent with contracted terms. Delivering independent advice on the value of a large engine portfolio. Operating
Values and lease rates: commonly traded aircraft and engines Boeing 737-800/MAX 8 Airbus A320 neo/ceo Boeing 777-300ER Airbus A330-200 2017 MAX 8 52.00 350-400 2017-800 47.50 330-390 2017 neo 48.80 345-395 2017 ceo 44.70 300-360 2017 164.00 1,150-1,450 2017 95.00 630-830 2014 75.50 540-740 2014 39.49 310-360 2012 34.60 285-335 2010 30.44 260-310 2008 26.78 237-285 2006 23.41 215-260 2004 20.40 195-238 2002 17.50 175-215 2000 14.90 158-195 2014 ceo 36.90 280-340 2012 ceo 32.10 260-315 2010 ceo 27.50 236-290 2008 ceo 23.40 210-265 2006 ceo 19.80 190-240 2004 ceo 16.80 170-215 2002 ceo 13.80 150-190 2000 ceo 11.70 135-170 2014 132.00 1,010-1,255 2012 114.00 930-1,145 2010 98.50 855-1,035 2008 84.70 785-930 2006 72.80 715-830 2012 63.50 480-665 2010 53.50 420-600 2008 46.50 370-540 2006 39.90 325-480 2004 33.90 285-420 2002 28.30 245-370 2000 23.90 210-320 1998 12.50 150-180 1998 ceo 9.90 130-160 2004 62.80 650-750 1998 19.00 180-270 Boeing 787-8/9 Airbus A330-300 IBA Engine values and lease rates 787-8 2017 121.00 920-1,050 2014 99.00 830-925 2012 85.40 760-860 787-9 2017 137.20 1,000-1,200 2014 110.70 910-1,040 2017 106.00 680-900 2014 84.00 580-800 2012 71.00 520-720 2010 60.00 460-650 2008 52.00 400-580 2006 44.00 350-510 2004 37.00 300-440 2002 31.00 250-370 2000 26.50 215-320 1998 21.50 190-280 1996 17.00 170-245 1994 12.50 160-220 AIRCRAFT VARIANT ENGINE VARIANT - BARE E190/E195 CF34-10E6 5.27 55-70 E170/E175 CF34-8E5 3.20 40-50 737-800 CFM56-7B26/3 6.00 60-70 A320-200 CFM56-5B4/3 5.95 60-75 A321-200 V2533-A5 S1 7.00 70-80 A330-300 CF6-80E1A3 9.82 105-115 A330-300 Trent 772B-60 8.35 105-115 A330-300 PW4168A 4.22 75-100 787-9 GEnx-1B74/75 PIPII 18.22 240-280 787-9 Trent-1000-J2 17.16 210-250 777-300ER GE90-115BL1 23.99 230-260 777-300ER GE90-115BL1-P 20.48 220-250 A380-800 GP7270 10.37 120-130 Join our mailing list at www.iba.aero for truly independent insight and thought leadership, or contact marketing@iba.aero for further information. Source: IBA.iQ February 2017
Essential market intelligence for aircraft operators and the global aviation leasing and finance community Our extensive fleet and values data, combined with unmatched market analytics, provides the confidence to make informed decisions on investments, risk evaluation and monitor single aircraft or portfolio valuations. Incorporating commercial aircraft data stretching back 60 years, our comprehensive fleet analysis holds all you need to know about commercial aircraft. Customise your intuitive dashboard and interface to keep up to date with analysis, market trends and developments. Keep ahead with bespoke analysis tools, use our historical values, age analysis and forecast fleet data to limit risk and inform investments. Build your own portfolios and make informed decisions with access to our intuitive appraisal platform, covering current and forecast values and lease rates. For a demonstration or trial email us at marketing@iba.aero IBA House, 7 The Crescent, Leatherhead, Surrey KT22 8DY, UK T: +44 (0) 1372 22 44 88 marketing@iba.aero 28-32 Pembroke Street Upper, Dublin 2, Ireland T: +353 (0) 1 237 46 90 marketing@iba.aero www.iba.aero