Quote: QAL don't normally bother with local leasing companies as they can finance the aircraft far cheaper themselves.
Oh really?
Here are the last few A320's received by Jetstar. Some are owned by Qantas, some are owned by leasing companies. Why doesn't Qantas use leasing companies for all of them?
See my reference to
local leasing companies. There is no conspiracy between former Qantas execs and who they now use for leasing, as you suggested earlier.
QAL use whomever and whatever structure can provide them with the cheapest cost of funding. Most of the time this is bank debt or capital markets issuances through the usual international financing suspects. Even the US Government has provided financing through Ex-Im for the 744ERs.
QAL's balance sheet doesn't have the free cash flow capacity to support outright purchases of aircraft for long periods. They will purchase the aircraft and then promptly use the aircraft as collateral for financing purposes.
Full Registration
Registration holder as of 25 January 2013
WINTER MSN 5489 LIMITED
Block B, Riverside IV Sir John Rogersons Quay
...
Full Registration
Registration holder as of 21 May 2013
BOC AVIATION (USA) CORPORATION
C/O BOC Aviation Pte. Ltd., 8, Shenton Way, #18-01
WINTER MSN 5489 Limited is an Irish Special Purpose Vehicle setup by a subsidiary of hedge fund Terra Firma, who then issue debt securities against this aircraft and the creditworthiness of QAL and JetStar. This is the structure they (and many hedge funds) utilise. Ultimately most of the cash for this aircraft comes from Nomura and Morgan Stanley.
BOC AVIATION (USA) Corporation is Bank of China's aircraft lending division - with funding coming from the entire Chinese economy.
Alas there is really no hidden conspiracy here. Cross-border aircraft financing was my bread-and-butter for 10 years, and Qantas were one of the best airlines in the business for negotiating with their financiers.