Willis Lease Finance Corporation
Climate Impact & Sustainability Data (2017)
Reporting Period: 2017
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Risks relating to our business: general economic conditions, demand for air travel, competition, interest rates, security concerns, terrorism, war, public health, political instability, inclement weather, natural disasters, environmental compliance, regulatory costs, labor costs, strikes, fuel prices, technological developments, maintenance costs, airport access, air traffic control, insurance costs, industry capacity, utilization, market conditions, and market prices for aviation equipment.
- Risks relating to our capital structure: inability to obtain sufficient capital, restrictions on operations, interest rate risk, risks in managing portfolio, insufficient liquidity.
- Risks relating to our foreign operations: divergent regulatory requirements, currency devaluation, political instability, enforcement of creditor rights.
- Risks related to our small size and corporate structure: intense competition, lack of organized market for spare engines and aircraft, assets pledged to creditors, inability to manage expansion.
- Risks of non-compliance with regulations: governmental regulation, export licenses.
Mitigation Strategies
- Credit analysis of lessees, additional credit support (letters of credit, guaranties, security deposits), evaluation of insurance and expropriation risk, monitoring political and legal climate, hedging with interest rate derivative contracts, portfolio management to anticipate demand, diversification of engine and aircraft types, selling obsolete assets, interest rate swap agreements, discussions with commercial and investment banks.