Airclaims Global Reach Local Presence Rapid Response

Transcription

1 Airclaims Global Reach Local Presence Rapid Response

2 Aircraft repossessions practical considerations for a successful recovery Peter Bull Group Director Risk and Asset Management

3 Aircraft repossession - programme Introduction What was different in the last downturn? Types of organisations requiring repossession support Different repossession scenarios Case study 1 practical implications Case study 2 practical implications Conclusions

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7 Asset Management

8 What was different this time? 1982 Bombardier Challenger Hawker 800 G550

9 Client types and typical support required Client examples Leading lessor Typical level of external support required Primarily additional technical resource / CAMO Possibly local knowledge Form part of the client s project team

10 Client types and typical support required Client examples Leading lessor Smaller lessor / larger financier Typical level of external support required Primarily additional technical resource / CAMO Possibly local knowledge Form part of the client s project team Technical and commercial support Tasked with project management of defined functions Provide contacts and relationships, input to legal

11 Client types and typical support required Client examples Leading lessor Smaller lessor / larger financier Mortgage / debt provider Typical level of external support required Primarily additional technical resource / CAMO Possibly local knowledge Form part of the client s project team Technical and commercial support Tasked with project management of defined functions Provide contacts and relationships, input to legal Locating / tracking the aircraft Full technical, commercial and industry support Full project management, arranging spares, maintenance, insurance, remarketing

12 Repossession variables Relationship Cordial Hostile

13 Repossession variables Relationship Notice/ warning Cordial Proactive Hostile Reactive

14 Repossession variables Relationship Notice/ warning Level of local support Cordial Proactive Supported Hostile Reactive Unsupported

15 Repossession variables Relationship Notice/ warning Level of local support Degree of complexity Cordial Proactive Supported Simple Hostile Reactive Unsupported Complex

16 Repossession variables Relationship Notice/ warning Level of local support Degree of complexity Cordial Proactive Supported Simple

17 Repossession scenarios The skills required and the mindset are very similar but every situation is very different

18 Case Study 1 practical implications

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20 Scenario Oasis Hong Kong Airlines ceases trading April 2008 Three B747 s, two in Hong Kong, one in Japan KPMG as Administrators Clifford Chance our client s lawyers Airclaims as Project Managers DVB as Remarketing Agent

21 Relationships and knowledge Specific knowledge of the aircraft and operator s systems are absolutely critical

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23 Relationships and knowledge How well and how quickly you can build relationships with the key players can make or break the success of a repossession

24 Examples of key players Receivers / Administrators Former employees working for the Administrator Lawyers Airport Authority Refueling companies Ground handlers Caterers Local MRO Local Civil Aviation Authority

25 Some initial challanges

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28 Each degree of EGT margin was worth US$200k Taxiway

29 Case study 2 practical implications

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31 MyAir MyAir Ceased trading July 2009 Four CRJ-900 s Three in Venice One in Bari Technical records in Vicenza

32 CAMO

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34 Where will you paint the aircraft?

35 Some realities 11,000 s for the Project Manager Large spares and logistics involved Teams can be operating in 4 or more different locations

36 Other practical considerations

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39 Conclusions Every repossession is different Understanding the aircraft and operators systems is essential early on. Local knowledge makes a big difference The relationships you make early on pay dividends Understand what your remit is and stick to it You need the horsepower and knowledge to stop the situation escalating Need a sound decision making process and often the funds to make payments quickly

40 And old saying in repossessions It is easier to get forgiveness than permission!

41 Thank you Peter Bull MSc, MBA, FRAeS Group Director, Risk & Asset Management Direct Line +44 (0) Mobile +44 (0) Airclaims Limited Cardinal Point, Newall Road, Heathrow Airport, London TW6 2AS Telephone +44 (0) Fax +44 (0) Website