Pooled aircraft securitizations grew significantly in 2000. Volume nearly tripled both in terms of dollar amount issued and number of deals completed. The year witnessed new issuers, innovations on existing structures and an overall solidification of pooled aircraft operating lease transactions in the securitization market. The maturation of this asset class is evidenced by the breadth of new issuers who, for the first time, are accessing the capital markets to both expand and diversify their aircraft portfolios. The market's increased understanding of pooled aircraft securitizations has led to a widening of collateral pools which currently range from fleets comprised exclusively of freighter aircraft to fleets of highly liquid narrowbodies. Structural innovations in 2000 included the use of multiple servicers, multiple sellers and incorporating the costs of refurbishing aircraft into the transaction.
The growth in issuance is also attributable to the relatively stable performance of existing pooled aircraft securitizations. Although lease rates have softened and some of the emerging market airlines have suffered as a result of downturns in their local and regional economies, most of the existing deals have performed as expected.