Avinco constantly searches the market worldwide and has a comprehensive database of available aircraft including aircraft wich may not be officially on the market. Avinco also prides itself in its long established relationships with manufacturers and an extensive network of potential sellers, particularly airlines operating large commercial jets – over 200 of which Avinco is in regular contact.
Through its worldwide network and comprehensive contact database, Avinco can offer its clients a significant selection of available aircraft. In order to meet operational, regulatory and financial requirements, Avinco will carry out assessments:
- for new aircraft - definition of product specifications;
- for used equipment – conduct detailed technical inspections and manage the definition and completion of maintenance, modifications or reconfiguration
Avinco’s in-house legal capabilities means that it can provide a comprehensive legal oversight service to manage all aspects of contractual and legal paperwork, while taking into account the complexities involved in dealing with varying deal specificities and international legislation
Avinco provides technical and commercial support services after entry-into-service that includes tracking commitment letter issues, managing warranties and coordinating training.
Avinco can assist investors or sellers in evaluating the risks and costs associated with buying (or demonstrate such points if selling) single or multi-aircraft portfolio’s or restructuring aircraft related investments. Having worked for a number of investors in evaluating small or medium sized portfolio’s, Avinco has consistently demonstrated the added value it brings through combining its intimate knowledge of aircraft leases and airline creditworthiness with its sophisticated in-house developed lease simulator. The simulator takes into consideration all of the major commercial lease terms, technical status of the aircraft and all financing and residual assumptions to assess the following:
- If buying: the optimum acquisition price for each aircraft on each specific lease in the portfolio.
- If selling: illustrating the main value drivers of each given lease to ensure the potential buyers recognise and compensate for such value
- If restructuring: set out the different scenarios by changing the existing lease terms, leasing the aircraft elsewhere, freighter conversion, rescheduling the debt or evaluating an outright sale.
Avinco’s in-house developed lease portfolio simulator is an IRR-driven aircraft operating lease calculator which predicts all lease-related cashflows and caters for different types of debt / leverage scenarios. It has an automated end-of-lease residual value calculator which is based on information from a number of industry recognised appraisers and corrected for anticipated maintenance condition at lease end.
© Avinco, 2014