IBA expands and provides support for Mid East start-ups

Many banks have recently exited or suspended aircraft financing which the company says has led to increased signs of distress among airlines. Many of the growing independent airlines in the region have also been hit by delays for funding issues. According to IBA 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 has turned to providing the necessary asset management support required by banks, lessors and investors.

“As an independent full service aviation consultancy, we can cover all activities from initial operator due diligence right through the cycle, culminating in redelivery management, workouts, repossessions and disposals,” says Owen Geach, IBA’s Commercial Director.
 
“We have seen a significant increase in the number of aircraft under IBA asset management programs”, says Geach. “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 a number of start-up airlines and operations in the Middle East, Africa, Russia and the UK, all requiring support for business planning, AOC applications and aircraft procurement. These in turn are leading to long term asset management agreements, the bureau said today.

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