mba - Brochure

mba morten beyer & agnew w a s h i n g t o n f r a n k f u r t t o k y o 1 mba morten beyer & agnew contents introduction key personnel strategic advisory services business consulting government consulting airport consulting asset management corporate aircraft appraisal and valuation publications and on-line services safety, regulatory and technical advisory iosa safety audit w a s h i n g t o n f r a n k f u r t t o k y o 2 mba morten beyer & agnew introduction mba is one of the most respected and recognized international aviation consulting firms worldwide. Specializing in providing value added services through three fundamental philosophies: industry expertise, strategic integration and flexibility,mba has the resources and network to deliver the best outcome and maximize client value. mba’s knowledge base consists of a staff with experience and expertise in almost all facets of the commercial aviation industry, including hands-on experience as senior management of scheduled and charter airlines engaged in international operations. mba and its principals have extensive experience in strategic airline consulting and management as it pertains to shareholder maximization, management restructuring, route analysis and scheduling, tactical marketing, safety auditing, and fleet analysis and utilization. Primarily serving airlines, manufacturers, investment banks and other owners and operators of commercial aircraft, mba has become well known for its appraisal, valuation and residual value forecasting of aircraft, engines and other aviation related assets. However, since its inception, mba has evolved into a premier aviation consultancy that handles not only appraisal requirements, but technical asset due diligence and inspection, safety and regulatory audit of aircraft and airlines, strategic advisory to the investment community and crucial timely analysis that empowers our clients to make the critical decisions with confidence. mba’s worldwide presence and breadth allows it to provide a 360 degree approach to consulting. mba is a one-stop shop when it comes to aviation asset advisory, from deal structuring to re-marketing and repossession, there are few firms that offer such a broad spectrum of experience and expertise. w a s h i n g t o n f r a n k f u r t t o k y o 3 mba morten beyer & agnew key personnel mba senior staff virtually spans the globe with knowledge and experience of the industry. We can provide support anywhere in the world with minimal expense to our clients at maximum value. **Robert F. Agnew ***L. Nick Lacey *Stephen P. Rehrmann Gabor Kovacs Marc Wilson ***Bruce Flinn, PhD Christian Nuehlen Michiro (Mike) Zushi *Morten S. Beyer ***Patrick J. Daley President & CEO Chief Operating Officer Vice President - Appraisal Group Vice President - Business Consulting Director of Safety, Quality & Asset Management Director - System Safety Programs Director - Europe Director - Pacific Rim Senior Advisor Senior Associate/IOSA Lead Auditor * ISTAT Certified Appraiser ** ISTAT Certified Senior Appraiser *** IATA IOSA Certified Auditor w a s h i n g t o n f r a n k f u r t t o k y o 4 mba morten beyer & agnew strategic advisory services mba is one of only few firms that can offer a full packaged approach to aircraft transaction advisory. As a recognized expert on aircraft markets, values and value forecasting, mba has always been able to tell you what to buy, our advisory services can tell you not only how to buy, but how to refinance, restructure, and reposition your exposure. As institutions reorganize and employees are expected to take on more areas of expertise, no one can be an expert in everything. Let mba be your expert in aircraft advisory. We can provide assistance to current or potential investors in understanding the various financial structures used in today’s aerospace transactions. As well, we can help those investors, analysts and newcomers that have inherited exposure through institutional mergers and acquisitions and need to understand the structures of transactions that were done in previous cycles, or just need someone to guide them through the confusing gamut of investment opportunities and the ever increasing assortment of aviation asset types. w a s h i n g t o n f r a n k f u r t t o k y o 5 mba morten beyer & agnew business consulting mba’s Business Consulting Team has the industry depth and experience to tackle a broad range of projects. From financial modeling of Asset Backed Securitizations/EETCs, providing strategic marketing support for airlines, business plan review and creation, financial due diligence on asset exposure, benchmarking of maintenance expenses and internal funding policies, the mba Business Consulting Team leaves other firms at the gate when it comes to technical and strategic support. For a full listing of previous projects, visit our website at www.mba.aero. financial modeling mba provides a range of services to major institutional lenders, venture capital firms, trustees and investors regarding aviation-related securities. Online products: Structured Debt Modeling (ABS / EETC), eFAV aircraft values Economic / Technical Due Diligence and Transaction Facilitation Forecast future market values using depreciation matching and economic cycle trending · Measure risk with LTV and credit analysis · Manage portfolio risk through sensitivity analysis · Determine debt fair value through discounted cash flow analysis bankruptcy and re-structuring With extensive experience throughout the previous two industry down-turns, and with the bankruptcies of US Airways, United Airlines and Midway Airlines, mba provided financial and technical due diligence of assets/collateral, negotiation assistance and advisory support. mba has assisted airlines, lessors, banks and institutional investors with issues concerning collateral and investment exposure through extensive modeling, analysis, industry intelligence and technical advisory support. Whether an airline or creditor is undergoing Chapter 11 bankruptcy protection, or an out-of-court restructuring, mba can provide effective value-added collateral services and advisory support. w a s h i n g t o n f r a n k f u r t t o k y o 6 mba morten beyer & agnew government consulting mba is a member of the GSA Financial and Our mission at mba is to assist government agencies in serving the public interest by advancing the safety, effectiveness, and efficiency of aviation in the United States and around the world. mba has provided expertise to government clients on a wide variety of subjects including virtually every aspect of air transportation. Whatever the subject, we assemble the right team with expertise in that particular area. As a member of the GSA Financial and Business Solutions Schedule (SIN 520-1), mba provides Small Business Assistance to government agencies requiring aviation operational and strategic expertise. mba has served a wide variety of government clients including the Department of State, Department of Defense, US Export-Import Bank, Department of Transportation, Federal Aviation Administration, Department of Justice, and Department of Energy. mba has a proven track record in performing aviation industry studies and analysis; providing government leaders with an objective view in order to best serve the public interest. We offer a considerable amount of expertise surrounding airport issues, airline economic regulatory concerns, aviation operational subject matter and issues of safety regulation, commercial relationships among carriers, and environmental regulations.. Business Solutions ( FA B S ) M u l t i - A w a r d Contract providing consulting services and expertise to the US F e d e r a l G o v e r n m e n t . Yo u can find MBA under Special Item Number (SIN) 520-1 w a s h i n g t o n f r a n k f u r t t o k y o 7 mba morten beyer & agnew airport consulting While aircraft are a key part of the capital structure of commercial aviation, airports and infrastructure play an increasing role in investment decisions. mba is prepared to advise those on both sides of the runway – airports, and those looking to invest in them. airport strategy Airports often faced with the need to adapt on fairly short notice, whether it involves attracting new carriers, or dealing with reductions in service by a major operator. Planning to meet future needs, considering both industry trends and unforeseen events, is critical to an airport’s success. Thorough and decisive planning needs to be at the forefront of any airport’s strategy; mba can help ensure that this is done effectively. mba’s business consulting team can assist in developing strategic plans to meet the changing dynamics of a sometimes volatile, industry. through the provision of advisory services to general managers and airport boards. mba can help airports plan efficiently and effectively by participating in and helping lead the strategic process, identifying crucial market trends and areas for investment, and assisting with obtaining and marketing financing to execute an airport’s strategy. due diligence Financial due diligence of airports is a complex area, especially for those new to investing in transportation infrastructure. The complexities of dealing with multiple airline and ground handling contracts, leaseholds, vendor agreements, security and environmental requirements, while simultaneously dealing with political implications and the impact on the surrounding community can be almost overwhelming. mba’s consulting team can deal with this complexity, and pinpoint areas that can make or break airport financings in the market, as well guiding investors through the more technical areas of investing in airports and infrastructure. mba can also assist on the “sell-side” with “road shows” and other marketing activities by providing third-party analysis, representation and assistance in answering investor questions. w a s h i n g t o n f r a n k f u r t t o k y o 8 mba morten beyer & agnew asset management Closing a deal is only a minuscule task when it comes to maintaining the value of your asset. Without the proper due diligence and lease servicing an asset can lose a large percentage of value if it is not looked after properly. mba works hand in hand with financial institutions to alleviate the headache of aircraft ownership to let the owners do what they do best, finance aircraft. A proper asset management program in place will correctly monitor the aircraft and its maintenance program and flag any potential issues that might arise. Should things deteriorate between the lending institution and the operator, mba can remove the aircraft and immediately place it on an aggressive remarketing program. The mba aircraft recovery program relies on the technical competence, specific aircraft expertise and local knowledge of the technical personnel assigned to each recovery tasking. In our judgment, no single firm has the necessary expertise to meet our clients needs world wide, so we have preexisting teaming arrangements with firms that can provide aircraft engineering, maintenance record keeping requirements, along with assessing lease return condition of the aircraft on behalf of our clients. w a s h i n g t o n f r a n k f u r t t o k y o 9 mba morten beyer & agnew mba provides business and corporate aviation services such as: · Corporate Air Shuttle Business Case Development · · Air Shuttle Operational Implementation Aircraft Purchase Assistance and Viable Ownership Solutions · · · · · · · Vendor Negotiation Strategies Re-sourcing Options Operational Benchmarking Operational Risk Management Security Review and Analysis Business Process Reengineering Value Analysis corporate aircraft Once viewed as an expensive perk for executives, business and corporate aviation has proven to be a cost effective tool for increasing productivity, revenues, and competitive advantage for many companies. Whether using an on-demand or regularly scheduled service model, utilizing regional aircraft can add to profitability when used: For Strategic Purposes - Flying sales teams or experts to customer locations; To Reduce Direct Costs - Transporting employees in an efficient and private environment allowing for a reduced trip length, greater productivity on board, and increased safety while traveling; To Improve Operational Efficiency - Bringing suppliers to meetings at company locations that help to foster an environment of cooperation, integrating the supply chain; To Maximize Asset Utilization - Allowing the company to courier mail or transport critical supplies, for example machine parts, on its own schedule or when needed. mba has the expertise and tools to analyze an organization’s air transportation requirements to determine an economically viable aviation solution for you. We can then utilize our extensive resources and capabilities to assist in all phases of the solution’s establishment. Once a solution is operational, MBA will support management in developing performance metrics to help maximize the value of the operation. Finally, we can advise existing operations’ management in realizing the full potential of their flight departments. w a s h i n g t o n f r a n k f u r t t o k y o 10 mba morten beyer & agnew appraisal and valuation Basic Aircraft Corporate Aircraft Engines Spares Simulators Airlines Landing Slots Routes mba is an industry leader in aircraft appraisal and inspection. Its staff has been involved in this area of the aviation industry for over 50 years. It is this depth of knowledge and insight that places mba in a class by itself. Drawing on a staff of seasoned inspectors and industry experts, all appraisals and inspections are reviewed by several of the mba staff to ensure quality and consistency in all facets of the work product. Valuations conducted by mba are based upon a combination of historical facts such as: comparable transactions, historic trends, operational and economic efficiency, technical and environmental factors, as well as anticipated future trends and future trend modeling. mba uses a proprietary model which it developed to quantify the multitude of factors that influence upon the present and future values of aircraft. Due to the capital intensive nature of commercial aviation assets, mba provides valuations for: · New Asset Financing to confirm manufacturer’s sales price and assessment of future debt/payment profile · · · Sale and Leaseback – used aircraft financing Portfolio Valuations – assessment of real asset value Residual Value Insurance – assessments for tax, airline balance sheet purposes, studies for lessor equipment acquisition and aircraft remarketing mba appraisers are led by ISTAT Certified Appraisers. Appraisals cover; aircraft, engines, spare parts and inventories, simulators, airlines, landing slots, international routes, and hangars. w a s h i n g t o n f r a n k f u r t t o k y o 11 mba morten beyer & agnew publications and on-line services mba publishes the most authoritative analysis of the current transport aircraft market and the factors which affect the demand for and price of new and used aircraft. mba’s aircraft valuation books are produced by a group of experienced aviation analysts and modeling experts. mba’s staff began the business of aircraft valuation books 20 years ago and no one knows it better. mba currently produces the following aviation publications: future aircraft values · Red Book -Jet Transport - An annual analysis, featuring over 65 types of commercial jet transport, with a mid-year update, providing current and future aircraft values for the next twenty years by year of build for all major jet transport aircraft. Red Book –Regional - An annual volume with mid-year update which provides the current and future aircraft values for over 50 regional aircraft out to twenty years. Red Book –Cargo - An annual volume with mid-year update which provides the current and future aircraft values for over 30 cargo aircraft out to twenty years. the red book · · efav - efav on-line valuation tool eFAV - The On-Line Valuation Tool - An on-line version of mba’s authoritative database of Current Base and Market Values and Forecasted Future Values. The eFAV contains portfolio value tracking abilities along with graphical and value modeling. Packaged Portfolios - A comprehensive on-line database of publicly issued Enhanced Equipment Trust Certificates (EETCs) and Asset Backed Securitizations (ABS) complete with Current Base and Market Values of each individual aircraft and aggregate totals. - w a s h i n g t o n f r a n k f u r t t o k y o 12 mba morten beyer & agnew safety, regulatory and technical advisory mba has the experience to provide cost effective compliance auditing, focused assessments of flight operations and maintenance programs, and certification project management for airlines, governments, and business flight operations. Using ICAO, FAA, JAA and industry best practices, mba is able to identify strengths and weaknesses enabling it to offer effective and sensible solutions. Whether you need assistance with regulatory compliance, safety program compliance and due diligence, or certification, mba can meet your needs and work within your requirements – worldwide. mba is an IATA-IOSA Accredited Audit Organization - qualified to certify commercial operators wishing to be certified by the IATA-IOSA Registry. Technically, mba’s staff is hands-on. Our team of engineers, pilots and mechanics have a solid foundation of expertise to assist with maintenance documentation write-up and audit and operational procedural review. When deployed on-site, mba can inspect aircraft and engine records as part of asset management or pre-purchase due diligence. Technical monitoring of assets during re-delivery has been an instrumental tool for many cost sensitive clients, or for those clients who do not have the in-house technical capabilities. Because aircraft are complicated, mobile assets, simple technical advisory, is, for many, the difference between effective asset recovery and a complete total write-off, or book loss. If your business is deal making, structuring or investing, and not aircraft repossession, re-delivery or records regulatory compliance, then consider letting mba do the dirty work. w a s h i n g t o n f r a n k f u r t t o k y o 13 mba morten beyer & agnew program concept iosa audit T h e I ATA O p e r a t i o n a l S a f e t y A u d i t ( I O S A ) P r o g r a m i s a n internationally recognized and accepted evaluation system designed to assess the operational management and control systems of an airline. IOSA uses internationally recognized quality audit principles, and is designed so that audits are conducted in a standardized and consistent manner. program benefits While the initial benefit of the IOSA program is to eliminate redundant audits and inspections, the cost and time savings to an airline becomes considerable. With reduced management burden and administrative costs, the program can pay for itself after one audit. The IOSA program provides airlines with a clear understanding of the audit requirements and processes combined with an objective process based on documented observations. Once completed, airlines have a credible, industry and regulatory accepted audit that can be used for multiple requirements including: code-share requirements, internal audit programs, financial & insurance due diligence, promoting public confidence along with enabling further business opportunities and market expansion. IOSA IATA Operational Safety Audit what makes mba unique? mba is a well-established, independent aviation consulting firm with over 10 years of experience in the airline industry. The mba IOSA staff is built around auditors with years of international aviation auditing experience, including airline code-share audit programs and operational and technical due diligence. mba is an independent audit organization that has the judgment and knowledge base to understand conformity with standards in all regions of the world. mba has multiple audit teams allowing for flexibility and efficiency in audit scheduling and planning. w a s h i n g t o n f r a n k f u r t t o k y o 14 mba morten beyer & agnew contact us w w w.mba.aero Washington D.C. 2101 Wilson Boulevard Suite 1001 Arlington, Virginia 22201 USA +1 (703)276-3200 +1 (703)276-3201 Fax Frankfurt Frankfurt Trianon Mainzer Landstrasse 16 60325 Frankfurt Germany +49 (0) 69 97168 -436 +49 (0) 69 97168 -200 Fax To k y o 3-16-16 Higashiooi, Shinagawa-ku Tokyo 140-0011 JAPAN +(81) (3) 3763 6845 +(81) (3) 3763 6845 Fax w a s h i n g t o n f r a n k f u r t t o k y o 15 mba morten beyer & agnew Access Air Aviation Exposure Management Aero Lloyd Flugreisen Airbus Industrie – North America AI(R) Marketing, Inc. Air France Air Malawi, Ltd. Air One Finance Corporation Air Zimbabwe Corp. Aircontact Aviation Management Aircraft Sales Co. Airline Capital Associates, Inc. Airtrails S.A. American Airlines Angelo Gordon ANA All Nippon Airways ANA Trading Corp., USA American Operation Corporation Ambac Assurance Arrow Air Astrid Finance Limited Atlantic Coast Airlines Atlas Air, Inc. Austral Lineas Aeras Aviation Capital Group Aviation Equipment, Inc. Babcock & Brown BAe Airbus BAE Systems Banc One Capital Bank of America Bankers Trust Bear Stearns BNP Paribas Bombardier Inc. Boullioun Aviation Services, Inc. Bristol Associates British Aerospace BTM Corporation C-S Aviation Cameroon Airlines Cathay Pacific Airlines Chase Manhattan Global Aerospace China Airlines China Southwest Airlines CIBC (TACA) Citibank NA Compass Capital Corporation Continental Airlines, Inc. CALYON Credit Suisse First Boston Dayton International Airport debis Airfinance Delta Airlines Deutsche Bank Electronic Data Systems Embraer S.A. Empire Capital Corporation EVA Airways Far Eastern Air Transport FedEx Corporation Fieldstone Private Capital Group Finnair OY FINOVA Capital Corp. Finrep GmbH First Hawaiian Leasing First National Bank of Maryland First Union National Bank Fleet Credit Corporation Flightplan International Fuyo General Lease Gemini Air Cargo GE Capital Aviation Services GOAL Goldman Sachs Goldentree Asset Management GPA House, plc Grupo Taca Hawaiian Airlines Heller Financial, Inc. IAMG Iberia Indigo ING International Aircraft Investors International Air Lease Interlease Aviation Corp. International Aviation Partners Japan Airlines Jet Airways (India) Limited John Hancock John Levin & Co Johnson & Higgins JP Morgan Chase Keesel, Young & Logan Kuwait Airways Lehigh-Northampton Airport Authority Lockheed Martin Aircraft Center Marshall Aerospace Marubeni Matrix Funding Corporation Macquarie Bank MCC Financial Corporation MetLife Capital Corporation Mexicana Airlines Mitsui/Tombo Mitsui Lease Mitsubishi MK Aviation Mobile Aerospace Engineering Morgan Stanley & Co. International, Ltd. Nations Air National Air Cargo INC. (NAC) NEPC Airlines Niagara Frontier Transportation Northwest Airlines Northwest International Jet Novus Management & Consulting partial client list NTT Finance Corporation Ocean Air Onur Air Orix Corporation Pegasus Capital Pembroke Capital Philippine Airlines Pillsbury Winthrop Pitney-Bowes Credit Corp. Polar Air Cargo Prudential Securities, Inc. Pt. Merpati Nusantara Rolls-Royce, Inc. Royal Jordanian West LB AG World Jet Trading A/S World Technology Systems Worldspan, L.P. World Airways Salomon Smith Barney Saudi Arabian Airlines Showa Leasing Singapore Aircraft Leasing Enterprise Societe Generale South African Airways Sudan Airways Sumishin Lease Sumitomo Mitsui Financial and Lease Co., Ltd. Sun Country Airlines TACA International Airlines TAME The Ages Group The Boeing Company The CIT Group Trans World Airlines Tradewinds Airlines Transportes Aereos Cabo Verde UniCapital Air Group U.S. Bancorp Leasing & Finance UAL Services/United Airlines US Airways US Aviation Underwriters VASP Brazilian Airlines Virgin Atlantic Airways XL Global Capital Wicker, Smith, Tutan, O’Hara w a s h i n g t o n f r a n k f u r t t o k y o 16