ISTAT Jetrader - Winter 2019 - 36

FIGURE 1: CONFIRMATION OF SATISFACTION OF
AGREED CONDITIONS TO TRANSFER

Conditions to
transfer have been
agreed and listed
on GATS

Airline or other party in whose favor the
conditions have been agreed has not
confirmed satisfaction of conditions

Airline or other party in whose favor
the conditions have been agreed has
confirmed satisfaction of conditions

Beneficial interest
transfer initiated

No conditions to
transfer have been
agreed or listed
on GATS

"We can streamline a lot of processes
with better use of technology."

EXTENDING
THE LIFE CYCLE

BUY * SELL * LEASE
For decades, Magellan Aviation Group has been dedicated to
keeping your aircraft in ﬂight. More than solely a parts supplier,
we are active purchasers of both regional and commercial aircraft
and engines to keep our warehouses stocked and ready to meet
your needs. Whether you're looking to sell or consign, buy or
lease, Magellan can ﬁll in the blanks.

ATR | BOMBARDIER | EMBRAER | AIRBUS | BOEING | CFM
GE | IAE | PRATT & WHITNEY

magellangroup.net

36

* T H E O F F I C I A L P U B L I C AT I O N O F I S TAT

Beneficial interest
transfer cannot
be completed
through GATS

Beneficial interest
transfer can
be completed
through GATS

"Not just the transaction documents, but the ownership
documents, the manufacturer documents, the records
of all the maintenance, the letters of credit," Swan says.
"Effectively, in its fullest form, it could become a real
electronic exchange of aircraft."
Swan also thinks it could broaden the capital base for
aviation and aircraft leasing by selling a percentage or
tranches of aircraft. "If you have an electronic exchange,
and you're only exchanging beneficial interest, then why
not sell tranches of aircraft and mix the airline credits and
aircraft types together for different portfolios the way PE
funds do with real estate and other investments? Improved
liquidity of aircraft ownership will support values and attract
new investors. That's why Airbus and Boeing are also big
supporters of GATS," Swan says.
This, of course, is further down the line. For now, Wool
says, "AWG is focusing on 'Day 1 GATS.' This is such a
substantial project. We are moving to an electronic process
with all that that entails. We are focusing 100% on that."
"This won't be the only way aircraft are traded. People
can do it the old-fashioned way. There could be another way
someone comes up with. This is the beginning of addressing
the issue that the current way of trading aircraft is too
costly, too time consuming and too impactful on our airline
customers," Swan says.

Next Steps
With the launch of GATS planned for Q2 2020 and transition
to the new system underway, everyone involved is working
hard on their respective tasks. "We have four major
international law firms helping us; we have an exceptionally
strong internal working lessor team; we have been consulting
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ISTAT Jetrader - Winter 2019

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