How Vx helps

Vx structures and funds innovative transactions involving aircraft, engines, loan portfolios and asset-backed securities for airlines and financial partners. Our typical investments include aircraft with medium and short-term leases attached, sale/leaseback transactions and cargo conversions. VX has high standards for investing and managing deals for optimal risk–adjusted returns for our own account and for joint venture partners. Our interest are aligned with our inventors as we invest in every deal for maximum value retention and profit.


We focus on three primary investment categories:

transaction-types1

Off-Lease Assets

We invest in off-lease aircraft equipment, which we then remarket, part out or sell. We are able to negotiate attractive prices for assets that have no cash flow attached. Our first job is to generate cash flow on the asset. Leasing the aircraft or its associated engines is a primary goal. If we hold aircraft until the leases expire, we may elect to disassemble them and sell their parts via a trusted partner. Vx has also converted multiple passenger aircraft into cargo configuration, thereby extending the useful operating and economic life of the asset into an alternative business segment.

transaction-types2

Structured Investments

We provide customized fleet leasing deals on midlife equipment to airlines. Generally, these transactions involve multiple aircraft of a single type and larger investment amounts. We will often purchase aircraft from an airline and lease them back for staggered periods. As a result, we can accept aircraft return gradually and focus on each redelivery. The purchase leaseback structure also allows us to negotiate leases up front with valuable protections (e.g., compensation if aircraft are not returned in marketable condition). During the term, we may see an opportunity to sell the equipment to another lessor for maximum gain. At lease expiration, we have various options to monetize the equipment, including sale, refinancing, releasing and dismantling. Returns are split between lease payments and residual value.

transaction-types3

Lease Restructuring

We purchase distressed loans and leases from lessors seeking to exit their investments. Because all of our investments are secured by aviation equipment, we are able to mitigate weak credit with sufficient collateralization. Analysis of the equipment and its value helps us decide if the equipment is strategic for the airline. In some cases, the lessee will be restructuring its obligations (in or out of bankruptcy) when we acquire. Often, we can avoid a costly repossession and remarketing. These investments often come during times of economic distress in which financing is difficult. It is during these times that many of our best acquisitions are made.