Date: Fri, 19 Dec 1997 17:01:11 GMT Server: Apache/1.0.0 Content-type: text/html Willis Lease Finance Corporation: Corporate Overview

WILLIS LEASE FINANCE CORPORATION

Table of Contents

Company : A brief overview of our company.
Engines : Catalog of available engines.
Shareholders : Shareholder's Update.
Executives : Executive profiles.
CEO Message : Industry news from our CEO.
Clients : Our client list.
Contact : How to reach the Willis Lease Finance Corporation.


Company Overview

Willis Lease Finance Corporation (formerly known as The Willis Group) is a leading provider of operating leases for spare commercial aircraft engines worldwide. The company acquires the engines in the aftermarket and leases them to foreign and domestic airlines, manufacturers and overhaul/repair facilities. The company also purchases and resells used and refurbished commercial aircraft engines, as well as airframe and engine components.

Willis Lease Finance Corporation serves a diversified base of customers worldwide. The company focuses on popular commercial jet aircraft engines, particularly noise-compliant Stage III engines, which are used on the Boeing 747,757,767,737-300/400/500, McDonnell-Douglas MD-80 Series, DC 10-31, MD-11 and Airbus A-300 and A-320.

Concentrating on this market, Willis Lease Finance Corporation services a niche sometimes ignored by the major commercial aircraft lessors. This focus takes advantage of the backgrounds and expertise of the members of the executive team, who have extensive experience in the airline engine industry.

Willis Lease Finance Corporation conducts business worldwide and has made agreements in over 60 countries, representing financial institutions, governments and companies involved in fleet modernization or restructuring. The company has been instrumental in the sales, leasing, financing, and/or purchase of $300 million worth of commercial transport type engines and aircraft.


Shareholder's Update

Shareholder's Update offers general information about the company for those interested in investment opportunities. For more details, please contact Elliot M. Fischer, Chief Financial Officer of Willis Lease Finance Corporation.

You may also check the current status of our stock (WLFC) at NASDAQ Latest Quotes.

Corporate Overview

Willis Lease Finance Corporation is a leading provider of operating leases of spare commercial aircraft engines worldwide. The company is primarily engaged in acquiring commercial aircraft spare engines in the aftermarket and providing operating leases of such engines to foreign and domestic airlines, manufacturers and overhaul/repair facilities.

As of December 31, 1996, the company had 32 engines and related equipment owned and/or leased to 23 customers in 11 countries. Under operating leases, the company retains the potential benefits and assumes the risk of the residual value of the engine, as distinct from finance leases where the full cost of the engine is recovered over the term of the lease. Operating leases allow airlines greater fleet and financial flexibility due to their shorter term nature and relatively small initial capital outlay to obtain use of the aircraft engine.

The company also engages in the purchase and resale of used and refurbished commercial aircraft engines and airframe and engine components. Integration of the company’s leasing operations and these businesses is beneficial in maximizing residual values for its engines on operating lease.

Industry Overview

Commercial airlines typically maintain a number of spare aircraft engines to ensure that their aircraft are not grounded when engines are removed for normal maintenance or as a result of engine failure. Industry analysts estimate that the worldwide fleet of approximately 11,000 commercial aircraft utilizes approximately 30,000 engines, including approximately 5,000 spare engines valued at over $11 billion. Ron Woodard, President of Boeing Commercial Airplane Group estimates 15,900 new aircraft will be delivered over the next 20 years, resulting in a projected worldwide fleet of approximately 23,000 aircraft in 2015, net of 3,900 retired aircraft. These 15,900 new deliveries, which represent a mixture of two-,three- and four-engine aircraft, will require approximately 39,000 installed engines. Assuming a ratio of approximately 17% spare engines to installed engines, the company estimates that these deliveries represent a potential market of approximately 6,600 additional spare engines over the next 20 years.

Airlines have increasingly turned to operating leases as an alternative to traditional financing of their aircraft, engines and spare parts. According to the 1996 Boeing Report, the fleets of operating lessors have grown from just over 200 aircraft in 1986 to over 1,000 in 1995, representing approximately 10% of total commercial aircraft at year-end 1995. Advantages to airlines of leasing include greater flexibility in fleet management, off-balance sheet reporting of operating leases, the ability to augment funds without affecting debt-to-equity rations, and the shifting of residual value risk to a third party. The company believes that airlines are increasing considering their spare aircraft engines as significant capital assets suitable for lease. Due to the increasing cost of newer aircraft engines, the anticipated modernization of the worldwide aircraft fleet and the significant cost associated therewith, and the emergence new niche-focused airlines which generally use leasing for capital asset acquisitions, the company believes this trend towards operating leases will continue.

Market Focus

The company’s strategy for its leasing business is to focus on operating leases of commercial aircraft engines to a diversified base of customers worldwide, while maintaining strict attention to estimated residual values. By focusing on this market, the company is able to take advantage of the background and expertise of its management, most of whom have extensive expertise in the airline engine industry, and to service a niche which is not the focus of the major commercial aircraft lessors. By maintaining a diversified customer base, the company minimizes customer-specific credit risks. In order to maximize residual values, the company focuses on popular commercial jet aircraft engines, particularly noise compliant Stage III aircraft engines. As of December 31, 1996, all of the company's engines were Stage III engines and were generally suitable for use on one or more commonly used aircraft such as Boeing 747,757,767,737-300/400/500, McDonnell-Douglas MD-80 Series, DC 10-31, MD-11 and Airbus A-300 and A-320.

The company engages in the short-term trading of commercial aircraft engines in the aftermarket to compliment its engine leasing business. It is the company’s general policy to minimize risk by not purchasing engines on speculation; however occasionally the Company purchases engines without having a commitment for the engine’s resale. The company normally makes a contractual commitment to purchase specific engines for its own account only after, or concurrently with , obtaining a firm customer commitment to purchase.

Willis Aeronautical Services, Inc.

The company, through its subsidiary, Willis Aeronautical Services, Inc. (WASI), provides aftermarket airframe rotable parts, engine parts, engines and modules worldwide. For certain aftermarket engines, the value of the component parts exceeds the value of the parts in their assembled state. WASI purchases individual engine parts in the aftermarket and acquires airframes and whole engines. WASI then dismantles them into their component parts for resale.

WASI specialises in the aftermarketng of JT80, JT90, CF6 and CFM56 parts, offering a complete range of traceable inventory. Parts can be purchased or exchanged on a regular basis.

In addition, WASI is able to review the surplus engine material for management and marketing. This assists airlines in turning their surplus inventory into ready cash.

WASI has an established traffic department which manages Willis Lease Finance Corporation's engine portfolio while on lease and through engine shop visits.

WASI offers experienced engine consulting, as well as records review and borescoping capabilities. WASI is in compliance with established procedues and is expecting ASA100 Accreditation in June 1997. Certification to IS9002 is expected by December 1997.


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Executive Team

Charles F. Willis, IV
Chief Executive Officer

Mr. Willis is the founder of Willis Lease Finance Corporation and has over 30 years of experience advising the aviation industry. His wide range of consulting services include fleet planning, cost of recertification estimation, assistance with purchase and lease documentation, appraisal of competing equipment and evaluation of financing proposals.

From 1965 through 1972, Mr. Willis held various positions at Alaska Airlines, in the flight operations, sales and marketing departments. He then joined Seaboard World Airlines, (a freight carrier), from 1972 through 1973 as Assistant Vice President of Sales. In 1975 he began Charles F. Willis Company to purchase, finance and/or sell a variety of large commercial transport aircraft while continuing to offer avaiation consulting services. In 1985 the company incorporated and in Fall of 1996 went public, becoming Willis Lease Finance Corporation.

William L. McElfresh
Executive Vice President

Mr. McElfresh has been involved with commercial jet engine sales and support for 28 years. His background managing marketing, sales, brokerage, exchange and monitoring programs for aircraft engines and parts proved invaluable when he joined the company in 1989 as Executive Vice President of Marketing.

In 1968, Mr. McElfresh was an Aircraft Maintenance Officer in the U.S. Air Force assigned to VIP and NASA Operations Support. In 1972, he established a marketing program in the Far East and South Pacific markets to support the growth for the new Component Repair Group of TRW, Inc. After completing an M.B.A. from Pepperdine University, he returned to develop and manage the worldwide spares support and overhaul operations for the Power Accessories Division of TRW. As Vice President, Sales & Marketing for International Aircraft Support, Inc., Mr. McElfresh was recruited to find and maximize new market opportunites for commercial jet aircraft engines and spare parts. He was a Partner with Turbine Engine Support Company from 1987 through 1989 before joining Willis Finance Leasing Corporation.

Steven D. Oldenburg
Senior Vice President - Capital Markets

Mr. Oldenburg has structured and negotiated several hundred millions of dollars in equipment financings for national and international leveraged and single investor leases. With over 20 years experience in the leasing industry, he has proven to be highly skilled at providing and arranging third party debt and equity.

Mr. Oldenburg holds a B.S. in Management from the University of Vermont and a Certificate of Accounting from Bentley College in Boston. From 1976 through 1991, he was employed by various international lessors, handling the financing for high tech equipment, medical equipment, rail equipment and corporate aircraft. From 1991 through 1994, he was Vice President, Syndications, for Marine Midland Business Loans, Inc. (formerly Concord Leasing, Inc.) There he specialized in financing commercial aircrafts and other commercial equipment. Mr. Oldenburg joined Willis Finance Leasing Corporation in 1995.

Elliot Fischer
Chief Financial Officer & Controller

Mr. Fischer has served as Chief Financial Officer and Controller since March 1995. His experience includes financial reporting and controls, forecasting, budgeting, strategic planning and reporting systems. During the 16 years prior to joining the company, Mr. Fischer held several senior level finance positions at various leasing companies including LeasePartners, Inc. from 1994 to 1995; USL Capital from 1990 to 1994; and Chrysler Capital Corporation from 1980 to 1987.

A Certified Public Accountant, Mr. Fischer's prior experience includes financial reporting in manufacturing environments, as well as a three-year assignment with International Paper Company as CFO of a paper converting facility in Japan. He worked in public accounting for three years and earned a B.B.A. in Accounting from Pace University in New York.

John F. Votruba
General Counsel

Mr. Votruba is responsible for overseeing the legal affairs of the company. He has been providing his services as an independent contractor since July 1991. His 20 years of experience include representation of both debt and equity interests in leveraged, single-investor and cross-border sales and leases of aircraft, engines and other transportation assets.

From 1975 to 1990, Mr. Votruba served as senior counsel with the former Security Pacific Leasing Corporation in San Francisco, specializing in aircraft leasing. He currently serves on the American Bar Association Commercial Financial Services Subcommittee on Aircraft Financing. He is a graduate of Carleton College with a B.A. in economics, holds an L.L.B. from the University of Wisconsin Law school and is a member of the State Bar of California.


CEO Message

In an interview with World Aero-Engine Review earlier this year, Charles Willis, CEO at Willis Lease Finance Corporation elaborated on the company's full service approach to leasing. The company contends that operating leases allow airlines greater fleet and financial flexibility due to their shorter term nature and relatively small initial capital outlay to obtain use of the aircraft engine. With an expanded engine services portfolio, ranging from traditional operating lease agreements to more complex Total Engine Care packages, Willis Lease Finance Corporation is positioned to meet the demands of whatever the future marketplace may require. A reprint of the complete article is available, please contact us if you would like a copy.


Client List

Each entity listed below has been a party to a transaction in which Willis Lease Finance Corporation acted as lessor, seller or buyer.

North/Central America
AAR Corporation
Aeron Aviation Corporation
Aerothrust Corporation
Aerovias de Mexico S.A. de C.V.
Airborne Express, Inc.
Alaska Airlines, Inc.
America West Airlines
American Airlines
Aviall
BWIA International Airways
Canada 3000
Canadian Airlines International
Carnival Airlines
Continental Airlines, Inc.
Emery Air Freight
Evergreen Airlines
Frontier Airlines
Gas Turbine Corporation
General Electric Capital Aviation Services, Inc.
International Lease Finance Corporation
La Tur
Markair
Northwest Airlines
Pacific Airmotive (UNC)
Polar Air Cargo
Pratt & Whitney
Reno Air
TransWorld Airlines
United Airlines
US Air
Western Pacific Airlines
World Airways
Europe
AerLingus
Air Liberte
Airplanes Finance Limited
Airtours International
Alter Bail Aviation
CFM International
Finnair OY
InterEuropean Airways
MTU Motoren-und Turbinen-Union
Oasis International Airlines
SOCHATA
Spanair
TAP Air Portugal
Virgin Atlantic Airways
South America
Ladeco Airlines of Chile
Lineas Aereas Paraguayas
Lineas Aeropostal Venezolana
Africa/Middle East
El Al Israel Airlines Limited
Israel Aircraft Industries
Trek Airways
Asia/Pacific
Air New Zealand
Far Eastern Transport
Garuda Indonesia
Grand International Airways, Inc.
Philippine Airlines


Available Engines

For a complete list of our available engines, please contact William McElfresh - Executive Vice President.


Contact Willis Lease Finance Corporation

Please e-mail William McElfresh (bmcelfresh@willisgroup.com) with any questions or comments you may have regarding the Willis Lease Finance Corporation. Of course, we would be happy to talk with you in person. Just call our main offices or write to us at:

Willis Lease Finance Corporation
Specialists in Aircraft Engine Lease and Finance

180 Harbor Drive, Suite 200
Sausalito, CA 94965
415.331.5281 Tel
415.331.0607 Fax


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Your comments welcome!

Last updated on Sunday, September 21, 1997.