ACC Aviation, the global aviation services group, with offices on five continents, reports positive growth in the second quarter of 2021, driven by US and UK Charter as well as steady growth in its consulting division.
Charter volume in the US and UK was up 39% year on year. Highlights included an uptick in the use of corporate shuttles, across the USA, Europe, and Asia, from the manufacturing, transport and sports sectors. ACC Aviation has supported a number of corporations with regular programme flying. US domestic business travel continues to lead the recovery with encouraging booking levels through 2021 into early 2022.
ACC Aviation’s consultancy arm fared well in Q2, with 1H revenues up 18% compared with the same period in 2020, and 33% up on 2019. With increased activity across aircraft disposal and acquisition, and sale-and-leaseback projects, the business is backing further expansion of its consulting division with its entry to Aviation Finance Advisory. ACC Aviation has appointed Viktor Berta as VP of Aviation Finance Advisory where he will be supporting new and existing clients in analysing financing and leasing arrangements, restructuring existing indebtedness, and sourcing new forms of financing.
“The creation this month (July) of a dedicated Aviation Finance Advisory within ACC Aviation, led by Viktor Berta, ex Erste and DVB Bank, leaves us even better placed to support airlines, lessors, lenders and investors with their existing debt and financing options as they navigate through this uncertain climate,” commented ACC Aviation CEO Phil Mathews.
Trading highlights for Q2:
- Appointed by Congo Airways, the national carrier of Congo DRC, to arrange the financing of its orderbook for 4x Embraer E190/E195-E2 aircraft, including on sale and leaseback.
- Arranged and advised on the acquisition one B737-300 for an undisclosed client in the CIS region.
- Arranged and advised on the pre-purchase inspection of one B737-300 stored in Estonia.
Consulting activities included:
- Ongoing engagement by a state-backed financier to develop a business plan for a new regional airline in West Africa
- Completion of several aircraft appraisals including a Dassault Falcon 50EX and an Airbus Helicopters EC130 T2
- Completion of a feasibility assessment for the launch of a new Middle East based helicopter touring business.
- Completion of a feasibility assessment for an aircraft teardown and dismantling facility in North Africa.
The ACC Aviation portfolio of services continues to evolve and will be further extended into Q3 and Q4 enabling the business to offer wider expertise to clients. This past quarter’s activity has exemplified the reach and breadth of its activity. The group has also grown its team in the US with multi-lingual team members helping to expand ACC Aviation’s footprint across Central and South America
"The market is improving, driven by US corporate travel, buoyed too by encouraging levels of ad hoc leisure charter to destinations like Mexico and the Caribbean, emphasising the pent-up demand for leisure travel. Charter opportunities will benefit hugely when the corridor finally opens between the USA and Europe", says Director of Charter Richard Smith. "The UK has been challenging, but there are still many opportunities for specialist sector travel", he notes.
ACC Aviation’s Consultancy arm sees an increased volume of aircraft transactions and financial restructuring, driven by the initial stages of market recovery.
“Airlines who take this opportunity to restructure their indebtedness will be in a much better position post-recovery than those who have not, with the leasing/lending community starting to limit airlines’ prospects of renegotiation now that the market is starting to recover,” said Rob Watts, ACC Aviation Director of Consulting.