IBA Expands its Aircraft Asset Management and Risk Advisory Services

Many banks have recently exited or suspended aircraft financing and there are increased signs of distress among airlines. As a result, a growing number of financial institutions are looking to outsource part or all of their asset management and risk assessment programs. In response to this need, IBA focuses on providing the necessary asset management support required by banks, lessors, and investors.

As an independent full service aviation consultancy, IBA provides the full complement of asset and lease management support services. This covers all activities from initial operator due diligence right through the cycle, culminating in redelivery management, workouts, repossessions, and disposals.

"We have seen a significant increase in the number of aircraft under IBA asset management programs," says Owen Geach, IBA's Commercial Director. "This growth has been triggered by lender risk management teams taking a much closer look at the loan to value ratios of their portfolios. Where there is concern, IBA has, in many cases, been contracted to provide a range of services to give comfort and practical support to these lenders."

IBA's in-house team of technical surveyors, analysts, asset managers, appraisers and advisors has recently grown to 28. This growth has been necessitated by distress in the industry and surprisingly, a number of start-up airlines and operations in the UK, Africa, Russia and the Middle East, all requiring support for business planning, AOC applications and aircraft procurement. These in turn are leading to long term asset management agreements.

"The market conditions have led to aircraft financiers placing a much greater focus on the asset, rather than just credit risk," says Geach. "Now the emphasis is on where an asset could be placed in the eventuality of repossession and how much the process would cost."

For more information contact Geach at owen.geach@ibagroup.com.

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