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	THE EXPERTS' VIEW
		May 2006 - Calyon, a key player in aviation financing Over the 30 years of its involvement in the aviation sector, Calyon has established itself as a leading player in aviation financing. Headed by José Abramovici, the Global Aviation Group has won many awards for its expertise and innovative financing. It is organised as a global business line and supports its customer base of major airlines, airports and plane makers in their worldwide projects, seeking always to build long-term relationships. An integrated global business line Key strengths Many aviation finance awards Strongly placed in Airfinance Journal rankings

An integrated global business line

José Abramovici, Global Head of Aviation Group & Rail Finance, Calyon.
		Specialising in commercial aviation, our teams finance the aircraft (jets, regional and cargo planes) operated by commercial airlines and provide support and advice to the various players in the aviation industry.

The business line employs around fifty people worldwide. It benefits from the expertise of six senior bankers and of international teams in New York, Paris, Hong Kong, Dubai and Tokyo.

For asset financing (aircraft, engines), Calyon offers solutions based on a range of techniques: securitisation, a sector where Calyon has long been particularly strong (securitisation of a portfolio of replacement engines for American Airlines), export credit structures (Eximbank credit for two B747-400s and one B777-200 ER for Korean Air) or tax leases (French tax lease on an ATR 72-500 for Air Tahiti, Japanese Operating Lease arranged on an Airbus A320-200 for China Southern Airlines and an A340-600 for Iberia).

Through its Transportation Advisory Group (TAG), Calyon provides a broad portfolio of expertise to help airlines and aircraft and engine manufacturers tackle a range of problems such as aircraft acquisition and financing, debt restructuring or fleet analysis. In 2005, for instance, TAG advised the Indian low-cost carrier Kingfisher Airlines on the preparation of its business plan and on financing for new Airbus planes.

The business line has nearly one hundred clients. It has already issued nearly 7.5 billion US dollars in loans, the equivalent of 750 aircraft financed or leased.

Calyon acts as a global arranger and lender, providing clients with expertise in a broad range of products, particularly:

• Financial advisory services,
• Guaranteed export financing (Airbus, Boeing, others),
• Syndicated commercial loans (arrangement, underwriting, placement, participation),
• Securitisation (aircraft, engines, airline head offices),
• Financial leases,
• Tax leases and off-balance sheet structures (particularly French tax leases and Japanese Operating Leases),
• Management services through ad hoc companies created to own planes,
• Risk coverage products (interest rates, currencies, fuel prices),
• Mergers and acquisitions,
• Aviation management and trading through our specialist Avequis subsidiary.

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Key strengths

• Long experience: Calyon has been active in these areas since 1975.
• A wide-ranging offering covering all sector requirements, driven by a dedicated specialist financial advisory team.
• Creation of a specific coverage dedicated to airports working in close cooperation with our project financing teams to offer innovative solutions. Notable recent successes include the mandate to arrange the refinancing of Bristol Airport in May 2005.
• Leader in Japanese Operating Lease deals.
• One of the few banks active in the aviation securitisation. Calyon first developed this business area in 1992 and has consistently stood out in this field. Notable deals include the securitisation of Northwest Airlines headquarters building in 2003 and the securitisation of replacement engines for American Airlines in 2005.
• Success in capital markets: we were appointed as Co-Manager of TAM's IPO in 2005 and Underwriter of Air China's IPO in 2004.

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Many aviation finance awards

Over the past 15 years, Calyon has been a regular winner of awards from specialist trade publications such as Air Finance Journal, Jane's Transport, Asset Finance and Leasing Digest and IFR.

• Aircraft Finance House of the year 2005, Jane's Transport,
• Aircraft Finance Equity Deal of the year 2005, Jane's Transport,
• Aircraft Finance Debt Deal of the year Asia 2005, Jane's Transport, for the financing of Airbus A320s on behalf of Air Asia,
• Aircraft Finance Debt Deal of the year Africa 2005, Jane's Transport, for the financing of Airbus A321s on behalf of Nouvelair,
• Aircraft Equity Deal of the Year Award for the financing of the acquisition of Debis Airfinance by Cerberus Capital, carried out in close cooperation with securitisation teams in New York and London.
• Airport Finance Deal of the year Europe 2005, Jane's Transport for the refinancing of Bristol Airport, carried out in close cooperation with project financing teams.

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Strongly placed in Airfinance Journal rankings

• Calyon, 2nd worldwide arranger of export credit for Airbus and Boeing aircraft in 2004 and 2005 (Sept 2004 / Sept 2005),
• Calyon, 4th in Japanese Operating Lease (JOL) equity worldwide (June 2005).

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