ISTAT Jetrader - Winter 2022 - 20

AUDIENCE POLL
When will we see a return to 2021
levels of ABS issuance?
* 2022: 0%
* 2023: 20%
* 2024: 40%
* 2025: 20%
* Later than 2025: 20%
speaker Adel A Ali, group CEO at
AirArabia. He noted that AirArabia is
down 3% for the year, but it exceeded
2019 in July and August. " We woke up
from the dream, and the business is
back. And it will only grow, " he said.
He advised that, to succeed, airlines
need to think about themselves less as
airlines and more as businesses. " Keep
it lean, " he said.
" Overall, " Ali said, " our region is
slow. Slow to act, slow to change. But it
has high potential. Air transport in this
region is one of the only ways to travel.
We have a lot of potential, but we need
to move faster. We need to have less
state-owned airlines and more private
businesses in the aviation sector. "
Airlines
The first panel of the day was
moderated by Steven Graham, head
of Europe and Africa at Avolon. The
panel included Mehdi El Yaalaoui, vice
president of strategy and innovation
at Royal Air Moroc; Patrick Halluin,
vice president of fleet transactions
at Air France; Joerg Hennemann,
senior vice president of commercial
fleet management at Lufthansa; and
Tamer Yuzuak, executive vice president
of finance and fleet management
at Pegasus.
The key themes of the discussion
were macroeconomic factors and
challenges the airlines are facing, the
air finance/lessor community, OEMs
20 * THE OF F I C I AL PUBL I CAT I ON OF ISTAT
and production/supply chain, and
sustainability. Most agreed that their
biggest challenge is fuel expenses.
" Our fuel cost has increased by 30%
over the past months, " Halluin said.
Yuzuak added that " Infrastructure
and workforce issues are affecting
profitability. We are looking to come up
with solutions to the growth problem
we're facing right now. The lack of clarity
on delivery and production rates of OEMs
brings additional costs to airlines. "
The panel also focused on the need
for flexibility. Specifically, Hennemann
said, " We all need to think about how
we integrate the CO2 debate and the
importance of SAF in the next years for
this industry because it's simply not
there. We need to think about how we
include this in future contracts. "
" Having a flexible lease structure
and managing it in such a way helps us
to be more profitable and productive
and act in line with the fluctuating
market conditions during the tough
days, " Yuzuak said. " The flexibility of
an airline's fleet management comes
RIGHT: Julian
Balaam, director
at SkytechAIC,
provided
Tuesday's opening
remarks.
LEFT: The Growth
of Private Equity
Panel, from left:
David Berkery
(moderator),
Benoist de Vimal,
Mounir Kuzbari,
Stewart Tanner
and Radha Tilton.
from the financed aircraft rather than
leased ones. There needs to be a
solution to find enough financing. "
Trading
The Trading Panel was moderated by
Donna Ager, partner and European
head of aviation at Maples Group.
Panelists included Sarah Conway,
senior vice president and head of lessor
origination, pricing and structuring at
Deucalion Aviation; Michael Littleton,
head of aircraft trading at SMBC
Aviation Capital; Neil McCrossan, head
of aircraft trading at Castlelake; Finnian
O'Neill, chief investment officer at ABL
Aviation; and Paraic Quinn, head of
trading at Avolon.
Each panelist touched on their
companies' strategies and the future
challenges and opportunities they
see ahead. Conway said Deucalion
Aviation is looking at mid-life assets,
" which is the backbone of our managed
fleet. " She said they've seen more
opportunities in looking at shorter lease
ISTAT Jetrader - Winter 2022

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