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AYR » Topics » Competitive Strengths

These excerpts taken from the AYR 10-K filed Mar 2, 2009.
Competitive Strengths
 
We believe that the following competitive strengths will allow us to capitalize on future growth opportunities in the global aviation industry:
 
  •   Diversified portfolio of high-utility aircraft.  We have a portfolio of high-utility aircraft that is diversified with respect to geographic markets, lessees, end markets (i.e., passenger and freight), lease maturities and aircraft type. As of December 31, 2008, our aircraft portfolio consisted of 130 aircraft comprising a variety of passenger and freighter aircraft types that were leased to 55 lessees located in 31 countries, and had lease maturities ranging from 2009 to 2020. Our lease expirations are well dispersed, with a weighted average remaining lease term of 5.1 years for aircraft we owned at December 31, 2008. While we seek to place our aircraft on lease to operators and on terms that provide the best risk-adjusted returns, many airlines are in a weak financial condition and suffer from liquidity problems. Accordingly, we believe that our focus on portfolio diversification reduces the risks associated with individual lessee defaults and adverse geopolitical or economic issues, and results in generally predictable cash flows.
 
  •   Experienced management team with significant expertise.  Our management team has significant experience in the acquisition, leasing, financing, technical management, restructuring/repossession and sale of aviation assets. This experience enables us to access a wide array of placement opportunities throughout the world and also evaluate a broad range of potential investments and sales opportunities in the global aviation industry. With extensive industry contacts and relationships worldwide, we believe our management team is highly qualified to manage and grow our aircraft portfolio and to address our long-term capital needs. In addition, our senior management personnel have extensive experience managing lease restructuring and aircraft repossessions, which we believe is critical to mitigate our customer default exposure.
 
  •   Existing fleet financed on a long-term basis.  Our aircraft are currently financed in four separate long-term asset-based financings with the earliest maturity date being in 2013, thereby limiting our near-term financial markets exposure on our owned aircraft portfolio. These


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Table of Contents

  limited-recourse financings provide for reasonably predictable debt service payments that, subject to meeting certain financial tests, provide the company with excess cash flow generally during the first five years from closing.
 
  •   Disciplined acquisition approach and broad sourcing network.  We evaluate the risk-adjusted return of any potential acquisition first as a discrete investment and then from a portfolio management perspective. To evaluate potential acquisitions, we employ a rigorous due diligence process focused on: (i) cash flow generation with careful consideration of macro trends, industry cyclicality and product life cycles; (ii) aircraft specifications and maintenance condition; (iii) when applicable, lessee credit worthiness and the local jurisdiction’s rules for enforcing a lessor’s rights; and (iv) legal and tax implications. We source our acquisitions through well-established relationships with airlines, other aircraft lessors, financial institutions and other aircraft owners.
 
  •   Global and scalable business platform.  We operate through offices in the United States, Ireland and Singapore, using a modern asset management system designed specifically for aircraft operating lessors and capable of handling a significantly larger aircraft portfolio. We believe that our facilities, systems and personnel currently in place are capable of supporting an increase in our revenue base and asset base without a proportional increase in overhead costs.
 
Competitive
Strengths


 



We believe that the following competitive strengths will allow
us to capitalize on future growth opportunities in the global
aviation industry:



 
















  •  
Diversified portfolio of high-utility
aircraft.  We have a portfolio of high-utility
aircraft that is diversified with respect to geographic markets,
lessees, end markets (i.e., passenger and freight), lease
maturities and aircraft type. As of December 31, 2008, our
aircraft portfolio consisted of 130 aircraft comprising a
variety of passenger and freighter aircraft types that were
leased to 55 lessees located in 31 countries, and had lease
maturities ranging from 2009 to 2020. Our lease expirations are
well dispersed, with a weighted average remaining lease term of
5.1 years for aircraft we owned at December 31, 2008.
While we seek to place our aircraft on lease to operators and on
terms that provide the best risk-adjusted returns, many airlines
are in a weak financial condition and suffer from liquidity
problems. Accordingly, we believe that our focus on portfolio
diversification reduces the risks associated with individual
lessee defaults and adverse geopolitical or economic issues, and
results in generally predictable cash flows.



 


























  •  
Experienced management team with significant
expertise.  Our management team has
significant experience in the acquisition, leasing, financing,
technical management, restructuring/repossession and sale of
aviation assets. This experience enables us to access a wide
array of placement opportunities throughout the world and also
evaluate a broad range of potential investments and sales
opportunities in the global aviation industry. With extensive
industry contacts and relationships worldwide, we believe our
management team is highly qualified to manage and grow our
aircraft portfolio and to address our long-term capital needs.
In addition, our senior management personnel have extensive
experience managing lease restructuring and aircraft
repossessions, which we believe is critical to mitigate our
customer default exposure.
 
  •  
Existing fleet financed on a long-term
basis.  Our aircraft are currently financed in
four separate long-term asset-based financings with the earliest
maturity date being in 2013, thereby limiting our near-term
financial markets exposure on our owned aircraft portfolio.
These





2




Table of Contents




















 

limited-recourse financings provide for reasonably predictable
debt service payments that, subject to meeting certain financial
tests, provide the company with excess cash flow generally
during the first five years from closing.



 
















  •  
Disciplined acquisition approach and broad sourcing
network.  We evaluate the risk-adjusted return
of any potential acquisition first as a discrete investment and
then from a portfolio management perspective. To evaluate
potential acquisitions, we employ a rigorous due diligence
process focused on: (i) cash flow generation with careful
consideration of macro trends, industry cyclicality and product
life cycles; (ii) aircraft specifications and maintenance
condition; (iii) when applicable, lessee credit worthiness
and the local jurisdiction’s rules for enforcing a
lessor’s rights; and (iv) legal and tax implications.
We source our acquisitions through well-established
relationships with airlines, other aircraft lessors, financial
institutions and other aircraft owners.



 
















  •  
Global and scalable business
platform.  We operate through offices in the
United States, Ireland and Singapore, using a modern asset
management system designed specifically for aircraft operating
lessors and capable of handling a significantly larger aircraft
portfolio. We believe that our facilities, systems and personnel
currently in place are capable of supporting an increase in our
revenue base and asset base without a proportional increase in
overhead costs.



 




This excerpt taken from the AYR 8-K filed Sep 26, 2007.

Competitive Strengths

We believe that the following competitive strengths will allow us to capitalize on the growth opportunities in the global aviation industry:

 

•

Diversified portfolio of high-utility aircraft. We have a portfolio of high-utility aircraft that is diversified with respect to geographic markets, lease maturities and aircraft type. As of December 31, 2006, our aircraft portfolio consisted of 68 aircraft comprising 16 different types that were leased to 31 lessees located in 23 countries and had lease maturities ranging from 2007 to 2014. Our lease expirations are well dispersed, with a weighted average remaining lease term of 4.2 years for aircraft we owned at December 31, 2006. While we seek to place our aircraft on lease to operators and on terms that provide the best risk-adjusted returns, many airlines are in a weak financial condition and suffer from liquidity problems. Accordingly, we believe that our focus on portfolio diversification reduces the risks associated with individual lessee defaults and adverse geopolitical or economic issues, and results in generally predictable cash flows.
 

•

Disciplined acquisition approach and broad sourcing network. We evaluate the risk-adjusted return of any potential acquisition first as a discrete investment and then from a portfolio management perspective. To evaluate potential acquisitions, we employ a rigorous due diligence process focused on: (i) cash flow generation with careful consideration of macro trends, industry cyclicality and product life cycles; (ii) aircraft specifications and maintenance condition; (iii) when applicable, lessee credit worthiness and the local jurisdiction’s rules for enforcing a lessor’s rights; and (iv) legal and tax implications. We source our acquisitions through well-established relationships with airlines, other aircraft lessors, financial institutions and other aircraft owners.
 

•

Scaleable business platform. We operate globally through offices in the United States, Ireland and Singapore, using a modern asset management system designed specifically for aircraft operating lessors and capable of handling a significantly larger aircraft portfolio. We believe that our facilities, systems and personnel currently in place are capable of supporting an increase in our revenue base and asset base without a proportional increase in overhead costs.

 

 

2

 

 

•

Experienced management team with significant technical expertise. Our management team has significant experience in the acquisition, leasing, financing, technical management, restructuring/repossession and sale of aviation assets. This experience enables us to evaluate a broad range of potential investments in the global aviation industry. With extensive industry contacts and relationships worldwide, we believe our management team is highly qualified to manage and grow our aircraft portfolio. In addition, our senior management personnel have extensive experience managing lease restructuring and aircraft repossessions, which we believe is critical to mitigate any potential default exposure.
 

•

Innovative long-term debt financing structure. We closed Securitization No. 1 on June 15, 2006. We have structured Securitization No. 1 to provide for the release to us during the first five years of “excess securitization cash flows,” or the cash flows attributable to the underlying lease after payment of expenses, interest and scheduled principal payments. We intend to use this excess securitization cash flow to pay dividends and to make additional investments in aviation assets. By way of comparison, a typical aircraft securitization starts with significantly higher leverage and allows no release of excess securitization cash flows; instead, these cash flows are required to further amortize, and thus lower the leverage on the securities.

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Mar 2, 2009
8-K
Sep 26, 2007

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