CAPA India Capital & Transaction Advisory provides a flexible range of services to assist clients through the process of acquiring, leasing or selling an aircraft.
We offer professional and transparent aircraft evaluation, acquisition, leasing & asset management services
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01
Aircraft economic performance studies and financial modelling
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02
Asset management and risk monitoring for banks and lessors
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03
Introductions for our clients to providers of financing and re-financing on competitive terms
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04
Mission requirements analysis to identify suitable equipment
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05
OEM and lessor liaison and negotiation support
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06
Structuring of terms and conditions in line with global benchmarks
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07
Wet leasing placement support and opportunity identification
Aircraft Sourcing & Marketing
Airlines looking to source aircraft are faced with a crowded marketplace, comprising OEMs, aircraft traders, brokers, lessors and operators. Evaluating the available options can be a complex and time-consuming exercise that takes airline management away from their core business. Our deep understanding of equipment types and aircraft market dynamics, together with our continuous engagement and relationships in the sector, enable us to identify and evaluate opportunities more effectively than airlines that may only be in the market for aircraft on an occasional and irregular basis. Our global fleet database and industry partnerships with ISTAT-accredited companies allow us to deliver significant value to our clients when acquiring or disposing aircraft. We are able to relieve clients of the hassle of identifying, assessing, negotiating and contracting with counterparties, while delivering professional and superior outcomes with integrity.
Aircraft Leasing & Financing
The leasing of aircraft is highly prevalent, with more than 40% of the global operating fleet on lease. However, significant resources are expended in inviting and evaluating lease proposals in order to secure the required aircraft and within desired timeframes. Lessees frequently opt for the lowest rental proposal or work with lessors that they are most familiar with. This may result in them missing out on more attractive offers.
CAPA India conducts a comprehensive analysis of the overall proposal, taking into account not only the monthly lease rentals, but also deposit conditions, reserves, delivery and re-delivery conditions, all assessed relative to industry benchmarks. As an experienced and professional advisor to our clients, we can perform due diligence on lessor proposals, negotiate favourable terms and conditions, and monitor lessor compliance with these terms. By leveraging our relationships with financial institutions, we are also able to secure timely and competitive funding for aircraft acquisition.
Fleet Planning Services
Fleet planning is arguably one of the most critical elements of airline management. Decisions taken with respect to equipment selection have long-term consequences for cost, revenue, profitability and risk. CAPA India’s comprehensive fleet planning suite provides clients with bespoke solutions to address their own unique questions such as:
- What are the most suitable aircraft for an airline’s network while minimising the complexity of the fleet and optimising costs?
- How should an aircraft be configured to best align with the variety of demand profiles that an airline may serve on different routes and at different times to maximise yields and revenues?
- What is the sensitivity of aircraft economics to external factors such as fuel prices, exchange rates and economic conditions?
- What is the appropriate ownership structure? How much capacity should be leased?
- When is the appropriate time to dispose of aircraft keeping in mind realisable residual values?
We provide a specialist, independent perspective, leveraging our comprehensive databases and experience. We are able to support clients with aircraft evaluation, fleet modelling, acquisition strategy and transaction advisory, with services tailored to individual requirements.
Recent CAPA Aircraft Advisory experience includes:
Aircraft evaluation and selection
We were appointed by a South Asian flag carrier’s aircraft acquisition committee to support its fleet modernisation plans. The study involved a detailed review of key operating and financial characteristics of Airbus and Boeing aircraft as presented in the manufacturers’ proposals. In parallel, we provided an evaluation of the carrier’s business and strategic plan.
Investor due diligence on aircraft suitability
CAPA India was engaged by a private equity fund to conduct due diligence on a charter business model based on the induction of a new very light jet (VLJ) aircraft type. Our role was to apply our knowledge and experience of general aviation to critique the robustness of assumptions and strategy related to revenue and demand, aircraft operations, regulatory issues, base selection, availability of infrastructure and validity of costs.
Mission requirements analysis and aircraft identification
Two leading business houses appointed CAPA India to advise on the proposed acquisition of pre-owned business jets. Our mandate was to conduct a detailed needs analysis of the company travel patterns to determine the appropriate mission requirements. This led to the identification of suitable aircraft types and a global search of available pre-owned equipment within these types.
Aircraft acquisition negotiation strategy and implementation
CAPA India has led discussions or negotiations on behalf of multiple start-up carriers with aircraft manufacturers, including Airbus, ATR, Boeing, Bombardier and Embraer, with respect to their acquisition and/or leasing of aircraft.
The growth of the aviation, travel and tourism sectors globally is generating significant new business opportunities. Our capital advisory activity was developed to assist the growing number of clients that request assistance with raising debt or equity funding, either for established or start-up ventures.
We work with our extensive network of local and international investors, including banks, leading private equity funds, corporate houses and high net worth individuals, to identify suitable partners.
Our network of global resources has expertise in economic studies, investor due diligence, industry forecasting, business valuation and asset management.
Please contact us at enquiry@capaindia.com for more information or assistance.