IBA expands risk advisory services

The International Bureau of Aviation (IBA), the independent industry body which provides business analysis and risk advisory services to the aviation industry, has extended its offering to provide asset and lease management support services to banks and other financial institutions that lend to aircraft companies. IBA commercial director, Owen Geach, says that many banks have recently exited or suspended aircraft financing and there are increased signs of distress among airlines. A growing number of financial institutions were now looking to outsource part or all of their asset management and risk assessment programs. “In response to this need, IBA has been focusing on providing the necessary asset management support required by banks, lessors and investors,” Mr. Geach said. IBA will provide asset and lease management support services covering all activities from initial operator due diligence right through the cycle, culminating in redelivery management, workouts, repossessions and disposals. The number of aircraft under IBA asset management programs, has increased significantly. “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.”