Case Studies

Aircraft & Engine Asset Backed Securitization (ABS) Transaction Support

Alton’s value to clients is derived from hundreds of years of industry and consulting experience. The selected case studies demonstrate some of our team’s capability.

Aircraft & Engine Asset Backed Securitization (ABS) Transaction Support

Since 2005, more than $50 billion in debt has been raised through asset-backed securitizations (ABS) to finance aircraft and engines in the operating leasing market. To support these transactions, numerous constituents including debt and equity investors, investment banks, lessors, and rating agencies require independent projections of aircraft maintenance condition and maintenance-related cash flows.

Our Approach

Alton’s solution brings a focus on the following key differentiators:

  • Accuracy: Our proprietary forecasting model, unencumbered by legacy approaches, features a clean-sheet design with numerous design enhancements derived from 30+ collective years modeling maintenance cash flows. Our experience working on precedent transactions with sophisticated asset managers and investors has shown differentials emerging from our model to be limited, a testament to the accuracy of our model and processes.
  • Transparency: With a fundamental commitment to transparency for the benefit of all stakeholders, our forecast has been designed to provide granular detail that far surpasses the final cash inflows and outflows aggregated an asset level that come from other sources. Alton’s projections provide full detail as to the status / condition of each component at each period, cost and intervals, maintenance event drivers and work scopes, and cash flows by source.
  • Speed: In part because of this enhanced transparency and accuracy, and in part because of numerous innovations (such as the use of cloud computing technology) and our resourcing commitment at Alton, we have demonstrated an ability to substantially compress timelines, such that modeling the maintenance cash flows are no longer pacing items.
  • Flexibility/Innovation: Alton is committed to working closely with market participants to understand any unique circumstances, and we maintain significant capability to customize our model and assumptions to meet the evolving needs and requests of lessors / issuers, rating agencies, banks, and investors. Alton engages in continuous improvement to further enhance its offering.
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Successful Outcome

Alton has been the leading provider of independent maintenance support evaluations, having supported on more than 35 issuances over the past several years, working with more than 20 lessors signifying the satisfaction of repeat clients. As a further endorsement, Alton has been engaged by a wide range of sophisticated investors and lessors to provide similar support as part of aircraft leasing buy-side due diligence exercises, for many hundreds of aircraft.