www.iba.aero

Investment guidanceManaging aircraft

Operating globallyTechnical expertiseDelivering value

Intelligence

Analysis

Member of ISTAT UK CAA Approval No. UK.MG.0622

Enhancing decision making

Across the deal cycle

SELECTION

OPPORTUNITY

THE DEALRUNNING THE ASSET

ADDRESSING ISSUES

EXIT

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35

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Established in 1988, IBA is a leading independent aviation consultancy advising a broad mix of lessors, operators, financiers and investors. Operating globally, we inform decision making and support operations across the aviation spectrum.

Whether supporting strategic investments, managing aircraft, advising on expansion, or driving efficiency improvements, our mix of intelligence gathering, analysis, proprietary data, technical expertise and decades of aviation experience delivers value across aviation opportunities and challenges.

Sell side advisory

End-of-lease options

Remarketing

Risk monitoring

Litigation and dispute support

Market analysis

Competitive intelligence

Due diligence

Valuations

Benchmarking

Negotiation

Risk assessmentTransition management

Maintenance and cost analysis

Technical and regulatory advisory

An introduction to IBA

Sitting at the intersection of our data, technical and industry expertise, IBA’s advisory practice provides a range of advice and solutions in relation to complex and strategic aviation challenges and opportunities. These include fleet selection, reducing costs, mapping and monitoring risk, freighter feedstock analysis, or better understanding a market, operator, or competitor. The advisory team draws upon the varied backgrounds at IBA and combines our aviation experience with our strategic analysis, business intelligence and due diligence expertise plus access to proprietary data. This enables us to drive creative answers to difficult questions.

Recent projects include:

Saving an airline US$40m in relation to a challenging fleet selection decision.

Gathering evidence and conducting complex modelling to achieve a settlement many millions of dollars less than an original claim in relation to litigation.

Opining on the financial and operational risk profile of over 130 airlines.

The provision of data and intelligence aids critical decision making and supports investment decisions across commercial aircraft, engines and other aviation assets. With a unique dataset combining over 25 years of historical asset values, maintenance data from hundreds of aircraft and a team of expert analysts, IBA provides critical data to inform investment and financing decisions, improve efficiency and visibility, plus reduce operational risk.

IBA is one of a handful of firms with multiple ISTAT appraisers, the established benchmark for aviation valuations.

Recent projects include:

Delivering maintenance adjusted values on 300+ aircraft as part of an acquisition.

Appraising airport slots for a large legacy carrier.

Gathering intelligence in relation to operators based in politically and economically sensitive destinations.

Advisory Commercial Aviation Intelligence

An introduction to IBA

The leasing cycle

Managing the process

3: Monitoring4: Transitioning

1: Pre-purchase 2: Running

Do you RETURN or EXTEND?

IBA analyses numerous factors including lease rates and liquidity, economic factors such as oil price outlook and the costs around meeting redelivery conditions.

An introduction to IBA

Asset Management

Leasing is fluid and complex. With decades of experience and a portfolio totalling over 100 aircraft and a value of US$3bn+ under management, IBA is ideally placed to manage your aircraft or engines, provide independent insight alongside your current management programme, and deliver critical intelligence around risk and maintenance.

No other provider of aircraft management services has IBA’s combination of independence, breadth of expertise and depth of data. IBA ensures the lease runs smoothly, risk is minimised and cost saving or efficiency opportunities are maximised.

Recent projects include:

Saving a lessee US$6m in maintenance and penalty payments in relation to redeliveries.

Reducing maintenance reserve claims by 80% by demonstrating the work performed was not to a sufficient level.

Advising new entrants on fleet mix, suitable lessees and sources of finance.

Aircraft operating leasing: the transition management minefield

Top 10 contributors to transition challenges

1. Poor contract drafting around redelivery conditions, lessor inspection rights and disputes processes.

2. Lack of lessee planning and early engagement with lessor.

3. Inadequate focus on assets during operations.

4. Lessee operational demands consuming redelivery resource.

5. Decentralised, missing or incorrectly completed records.

6. Underestimation of the total workload.

7. Discovery of additional work required during maintenance input.

8. Lack of lessor appetite for returned aircraft.

9. Engines failing final borescopes – carry out precautionary borescope much earlier.

10. Underestimating lead times and lessor expectations.

Months before lease end 21

20

15

13

Always complex to assess, forecast and maintain given the myriad of variables.Manage cycles and shop visits more strategically.Late decisions on engine build WILL lead to increased costs and late redelivery.

Records, where are they?Use of PMA/DER repairs.Local approved mods versus OEM sourced data.

DOCUMENTATION

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24

912 10

36

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ENGINES

200%$0%

$

Assess replacement options

Confirm lease return, engage lessor

Interior & Configuration

Engines: assess condition

Modifications & Repairs

Late delivery lease premiumDependent on contract

Average overspend

at lease end

$3.9m

$1.65m

An introduction to IBA

IBA recognises the importance of using the right blend of technical and market knowledge in understanding the market value of all critical aviation components. None can be as important as for the aero engine. We pride ourselves on being able to provide accurate value opinion and commercial advice on all aspects of engine management and are especially experienced at managing engine redeliveries.

From selection and EIS to disposal, IBA understands the complex elements relating to the residual value performance of engines. Through our positive working relationships with engine manufacturers and lessors, IBA has established comprehensive datasets on all engine variants that are currently fitted on commercial passenger aircraft. This enables us to accurately determine engine values, accounting for replacement price, age, market condition, depreciation based on resale history and useful economic life.

Engines

ManufacturingExiting

InvestingManaging

Operating

An introduction to IBA

Recent projects include:

Informing the selection of engines incorporating independent data relating to efficiency and maintenance costs.

Saving a party in excess of US$1million by ensuring work performed and associated claims were consistent with contracted terms.

Delivering independent advice on the value of a large engine portfolio.

Values and lease rates: commonly traded aircraft and engines

Join our mailing list at www.iba.aero for truly independent insight and thought leadership, or contact marketing@iba.aero for further information.

Airbus A330-300

Boeing 737-800/MAX 8

LOW-HIGH LEASE RATE

RANGE (US$ 000)

YEAR CMV (US$m)

2017 neo 49.50 340-400

2017 ceo 44.70 295-350

2014 ceo 36.90 272-332

2012 ceo 32.10 250-306

2010 ceo 27.50 230-280

2008 ceo 23.40 212-253

2006 ceo 19.80 191-228

2004 ceo 16.80 171-204

2002 ceo 13.80 150-180

2000 ceo 11.70 131-158

1998 ceo 9.90 112-140

LOW-HIGH LEASE RATE

RANGE (US$ 000)

YEAR CMV (US$m)

2017 103.00 640-840

2014 83.00 570-800

2012 71.00 510-720

2010 60.00 442-642

2008 52.00 375-565

2006 44.00 320-490

2004 37.00 270-420

2002 31.00 235-360

2000 26.50 205-313

1998 (LGW) 16.80 180-270

1996 (LGW) 13.95 155-233

1994 (LGW) 11.00 140-200

LOW-HIGH LEASE RATE

RANGE (US$ 000)

YEAR CMV (US$m)

2017 MAX 8 51.45 340-410

2017 -800 47.50 310-380

2014 39.49 280-352

2012 34.60 255-324

2010 30.44 230-298

2008 26.78 208-272

2006 23.41 188-250

2004 20.40 169-231

2002 17.50 153-213

2000 14.90 137-191

1998 12.50 125-175

LOW-HIGH LEASE RATE

RANGE (US$ 000)

YEAR CMV (US$m)

787-8

2017 121.00 900-1050

2014 99.00 770-900

2012 85.40 703-813

787-9

2017 138.50 1000-1200

2014 110.70 875-1050

Boeing 787-8/9

Airbus A320 neo/ceo

LOW-HIGH LEASE RATE

RANGE (US$ 000)

YEAR CMV (US$m)

2017 91.50 600-780

2014 74.00 530-723

2012 63.50 470-648

2010 53.50 407-577

2008 46.50 348-510

2006 39.90 298-445

2004 33.80 253-390

2002 28.10 220-340

2000 23.40 188-288

1998 19.00 160-240

LOW-HIGH LEASE RATE

RANGE (US$ 000)

YEAR CMV (US$m)

2017 164.00 1200-1450

2014 132.00 1040-1250

2012 114.00 940-1110

2010 98.50 850-1000

2008 84.70 750-900

2006 72.80 650-800

2004 62.80 550-700

AIRCRAFT VARIANT

ENGINE VARIANT

CMV - BARE (US$m)

LOW-HIGH LEASE RATE RANGE

(US$ 000)

E190/E195 CF34-10E6 5.00 55-70

E170/E175 CF34-8E5 3.15 38-50

737-800 CFM56-7B26/3 5.85 60-65

A320-200 CFM56-5B4/3 5.90 60-70

A321-200 V2533-A5 S1 7.30 75-90

A330-300 CF6-80E1A3 9.58 110-125

A330-300 Trent 772B-60 7.90 110-125

A330-300 PW4168A 3.90 65-90

787-9 GEnx-1B74/75 PIPII 16.58 230-270

787-9 Trent-1000-J2 17.12 220-250

777-300ER GE90-115BL1 24.16 230-260

777-300ER GE90-115BL1-P 21.10 220-250

A380-800 GP7270 10.50 120-130

Airbus A330-200Boeing 777-300ER

IBA Engine values and lease rates

An introduction to IBA

Source: IBA.iQ September 2017

IBA House, 7 The Crescent, Leatherhead, Surrey KT22 8DY, UK T: +44 (0) 1372 22 44 88marketing@iba.aero

www.iba.aero

Our extensive fleet and values data, combined with unmatched market analytics, provides the confidence to make informed decisions on investments, risk evaluation and monitor single aircraft or portfolio valuations.

Incorporating commercial aircraft data stretching back 30 years, our comprehensive fleet analysis holds all you need to know about commercial aircraft.

Customise your intuitive dashboard and interface to keep up to date with analysis, market trends and developments.

Stay ahead with advanced analytics, use our historical values, estimated lease end data, age analysis and forecast fleet records to limit risk and inform investments.

Build and update your own portfolios and make expert decisions with access to our intuitive appraisal platform, covering current, historical and forecast values and lease rates.

For a free trial or iQ demonstration register at www.iba.aero/iQ

28-32 Pembroke Street Upper, Dublin 2, Ireland T: +353 (0) 1 237 46 90marketing@iba.aero