SERVICES

Operating Leases

Operating Leases

An increasing number of airlines are introducing aircraft into their fleet by use of the lease. This trend, which has been growing in popularity for some time now, offers airlines cost efficiency and flexibility.

MCAP group has in excess of 20 years experience in aircraft leasing and currently owns about 100 aircraft which are currently available or will be available in the near future for operating leases. Also, if there is an aircraft which is more suitable for our customer's fleet plan outside of our current portfolio, we can consider purchasing and leasing it to airline customers. Our experienced professionals with up-to-date industry and lease drafting knowledge will ensure that airlines are provided with the specific terms tailored to meet their operational requirements and provide other required commercial benefits.

Sales & Leaseback

Sales & Leaseback

We also provide sale and leaseback (SLB) opportunities for new and used aircraft. The SLB option gives airlines flexibility in their fleet planning and a method of converting their asset into cash, while continuing to operate the asset.

Remarketing Services

Remarketing Services

MCAP Group has built an extensive global network, which enables us to find the best solution for remarketing of any aircraft, anywhere. MCAP Group has offices in Tokyo, Dublin, and Los Angeles. In addition, we have deep, boots-on-the-ground support from the more than 200 offices worldwide offices of our parent company, Mitsubishi Corporation. These relationships provide MCAP Group with local access to the global aviation market - and an important competitive advantage -- to successfully remarket your aircraft.

Aircraft Trading

Aircraft Trading

At times, airlines need to divest aircraft while simultaneously adding to or upgrading a portion of their fleet. MCAP has the expertise in house to provide a sophisticated transaction analysis along with the financial strength, inventory and direct market access to handle both sides of a transaction concurrently, regardless of its size. This ensures the airlines receive the best possible pricing and a seamless fleet conversion.

PDP Finance

PDP Finance

Growing in popularity over the past couple years, pre-delivery payments, or “PDP,” are staged partial payments of an aircraft purchase made by the buyer to the aircraft manufacturer prior to the aircraft’s delivery.
Typically, this ranges from 20 percent to 40 percent of the total purchase price and is comparable to putting a down payment, or in this case a series of down payments, on an expensive new car prior to its delivery. The manufacturer reduces risk and improves its cash flow.

When MCAP finances an airline’s PDPs for new aircraft, the airline benefits by conserving cash flow. It can also transfer some of the risk, to a third party, that the airline may default on its final delivery payments. While PDP financing is typically for up to 75% of the total PDP, MCAP has at times financed up to 100 percent of an airline's PDP.

Market liquidity for the specific type of aircraft being financed is a key factor in determining the risk, and cost/benefit, of PDP. With its large inventory, and extensive penetration of the global aircraft marketplace, MCAP is in a superior position to finance airlines’ PDP at the industry's most favorable terms. This is perhaps the most complex financial instrument in aviation finance, and one at which MCAP is widely regarded to excel.

Asset Management

Asset Management

MCAP Group provides new investment opportunities, which meet the specific needs of the investor.
• Arranging sale and leaseback of new and used aircraft
• Acquisition of used aircraft with lease attached

LEASE MANAGEMENT, CONSULTING SERVICES, AND TECHNICAL SUPPORT

To distinguish itself as an industry leader, MCAP Group provides its customers with highly skilled lease management, consulting and technical support services on a broad range of activities and subjects impacting their owned fleet of aircraft focused on maximizing value and ROI. These include:

• Advising on the contract language and structure best suited to retain and maximize asset value during the operating lease term and upon aircraft return.

• Providing pre-purchase analysis of technical risk factors associated with aircraft acquisition along with insightful counsel on the technical options to consider during any purchase negotiation. This includes technical analysis of engine-related as well as airframe-related issues.

• Providing advice on contract compliance matters relating to technical conformity and reviewing annual technical reports to advise on operational compliance matters during lease term to consider during pending returns.

• Providing real-time, global market-based perspective on asset valuation and trends that may impact our customer's aircraft or fleet.

• Providing technical advice on current regulatory rules directly impacting the fleet, notice of proposed rule changes possibly impacting the fleet in the future, and jurisdictional considerations when moving aircraft from region to region.

• Providing analysis and advice on airframe and engine modification campaigns and their impact on asset value. This includes working on our customers’ behalf with third party agencies, or the lessee directly, to ensure maximum customer benefit by negotiating optimum pricing, warranty review, and performance guarantees provided by the Original Equipment Manufacturers. Also provide advice on turn times for both required and optional modifications that will increase asset value.

• Managing and advising on delivery and redelivery of aircraft through all phases of the process which may include: coordination with the lessee or their technical representatives, third party maintenance personnel, regulatory representatives, flight crews, and retained technical support agents for successful completion of the transaction on budget and on time. Provide customers with progress reports and advise on all matters impacting the customer throughout this process.