ISTAT Jetrader - Spring 2022 - 22

The next panel was titled " The
Aftermarket: Market Update and Expert
Analysis " and featured moderator Abdol
Moabery, president and chief executive
officer of GA Telesis, and panelists
Dan Watson, chief commercial officer
of Aero Capital Solutions; Karl Drusch,
chief executive officer of TrueAero
LLC; Paul Greco, associate director of
asset trading at Intertrade, a Collins
Aerospace Company; and Bill Polyi,
president and CEO of Magellan Aviation
Group. Watson began the discussion
by talking about the bifurcation of
the market seen during COVID-19, as
well as the stagnation of deals. " The
first six to eight months, we didn't see
much move at all, " he said. " When
the market started to move again, we
saw the older air frame types like 319s
and 700s take a hit. It was almost a
50% reduction of value in those. We
had to be strategic and patient. The
narrowbody fleet never really stopped
flying, which supported us and asset
values tremendously. "
Polyi said that, during the height
of the pandemic, his company saw a
reduction in the quantity of sales but
not the quality. " We may have seen
contributed in 2020, and, in 2021,
the Foundation awarded US$397,500
in scholarships; invested US$63,000
in the ISTAT University; provided
US$15,000 in internship stipends;
awarded US$105,000 in grants;
and awarded US$390,000 in
humanitarian aid.
The final panel of the conference
was the Lessor Panel, moderated
by Dana Barta, aviation debt capital
markets at J.P. Morgan, and featuring
Tom Baker, chief executive officer and
president of Aviation Capital Group;
Peter Barrett, chief executive officer
of SMBC Aviation Capital; Michael J.
Inglese, CFA, chief executive officer of
Aircastle Limited; and John Plueger,
chief executive officer and president
of Air Lease Corporation. Barta kicked
the session off with quick yes-or-no
questions to the group. " Do you think
the MAX will be certified in China
in the first half of next year? " Yes
all around. " Do you think the risk
adjusted opportunities are better now
for widebodies? " Barrett said no; the
others said yes. " Will bankruptcies
slow down next year worldwide? "
Yes all around. " Is inflation good for
starting today will try to do well. It's
good for our industry and customers. I
welcome it. It's a dynamic, competitive,
vibrant industry. "
The group was also asked what's
on their OEM wish list. Baker said
" Airbus needs to deliver aircraft on
time, " and Plueger remarked, " On the
Boeing side, we need the 787 quality
escapements concluded. As much as I
do want my 787s, it's a transformative
process Boeing is going through. The
wish list is that they come to a good
space, we deliver the 787s, the MAXs
are back on track, and we receive
China and Russia certification on
the MAX. "
On the topic of ESG and how that
affects fleet decisions, Plueger said,
" We only invest in new airplanes. The
" It's not enough just to buy the most state-of-the-art
airplane; we have to accelerate a path forward for the
benefit of the planet. "
larger reductions on air frame, but
for the engine parts, we really didn't
have to discount that much, " he said.
" The people who needed them paid
what they had to pay for immediately
available parts. "
Before the last session of the day,
Jep Thornton, partner at Aerolease
Aviation LLC, provided an ISTAT
Foundation update. Highlights included
the Foundation having a recordbreaking
year with over US$1.4 million
2 2 * THE OF F I C I AL PUBL I CAT I ON OF ISTAT
aviation? " Yes all around. " Is now
a good time to enter the leasing
business? " Yes all around. " Will a new
technology plane launched before the
end of the decade? " No all around.
Barrett was asked if those getting
into the industry now are " tourists "
or if they're in it for the long term,
to which he replied: " We were all
tourists once. Some of them will do
well, some won't. I have no doubt
some of the leasing companies
lessors are now delivering over 50%
of all deliveries this year. We're a big
factor and should have a bigger voice.
It's not enough just to buy the most
state of the art airplane; we have
to accelerate a path forward for the
benefit of the planet. " To that same
question, Inglese said: " We haven't
made a decision about seeking an
ESG rating. Practically speaking, as
we think about next year, the trends
will make us focus our efforts on
younger assets. "
Networking Events
There were many opportunities to
experience Austin and meet with
other ISTAT Americas participants
at this year's event. On Sunday,
there was a clay target shooting
outing at Copperhead Creek
Shooting Club, as well as the ISTAT
Foundation Golf Tournament and the
Welcome Reception.
Monday and Tuesday evening
networking events included the ISTAT
Women's Networking Reception, Club
ISTAT at Antone's, and the President's
Gala Dinner and Award Ceremony
where Abdol Moabery was presented
with the ISTAT Award.
ISTAT Jetrader - Spring 2022

Table of Contents for the Digital Edition of ISTAT Jetrader - Spring 2022
