Leasing markets up, bullish outlook from Aercap – Suppliers Share Wrap


AerCap announced it navigated 2009 without a single aircraft repossession, and rising traffic levels (even in traditional aviation markets) could potentially lead to airlines cautiously adding capacity through 2010.

In 4Q2009, AerCap entered into nine engine lease agreements and signed aircraft lease agreements for 15 aircraft:

See related report: Asia Pacific airline fleet growth to peak in 2010; China Southern, Air China and ANA fastest growth

During 4Q2009, AerCap acquired four new A330s, four new A320s and one new A319, all under existing commitments with Airbus, as well as one used A320. The company’s portfolio now covers 291 aircraft and 92 engines.

It also signed agreements for three separate debt facilities, totalling USD484 million. This brings the total debt facilities concluded by AerCap during 2009 to USD1.7 billion, and USD5.0 billion during the last two years.

In trading on Wednesday, Aercap rose 1.8%, with Genesis Lease up 2.1%. Other aircraft lessors also traded up, with Babcock & Brown gaining 3.0% and Aircastle rising 4.1%, hitting a 15-month high and continuing a rally seen since mid-Dec-2009.

Heath Tecna to participate in MRJ

Mitsubishi Aircraft Corporation has meanwhile tapped Heath Tecna to supply the interior components for its MJET regional jet due to enter service in 2013. The company cited Heath Tecna’s long history with interiors with its products on 6,000 aircraft worldwide.

Heath Tecna will supply interior linings for the flight deck, as well as both passenger and cargo compartments for the 70- to 90-seat jet. In addition, it is supplying galley units, lavatories, emergency escape slides and waste/water systems.

The Bellingham-based company joins nine other suppliers on the program. The MRJ project continues to proceed with developments, including a recent agreement with Eurocopter to supply baggage, service and passenger doors for the MRJ. Other suppliers include Pratt & Whitney with its PurePower PW1000G engine; Parker Aerospace (hydraulic system), Hamilton Sundstrand (various systems including electrical power, air management and auxiliary power units); Rockwell Collins (flight control computers and avionics); Nabtesco (flight control actuators); Sumitomo Precisions (landing gear); Spirit AeroSystems (pylons) and AIDC (five parts including flaps and slats).

Selected Aviation suppliers’ daily share price movements (% change): 13-Jan-2010

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