MIRA
INFORM REPORT
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Report Date : |
12.10.2012 |
IDENTIFICATION DETAILS
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Name : |
AVIATION CAPITAL GROUP CORP. |
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Registered Office : |
610 Newport Center Drive, Ste 1400, Newport Beach, CA 92660 |
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Country : |
United States |
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Date of Incorporation : |
1989 |
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Legal Form : |
Corporation – Profit |
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Line of Business : |
engages in the acquisition, management, and leasing of commercial jet aircrafts
to international airlines worldwide |
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No. of Employees : |
89 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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United States |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
UNITED STATES - ECONOMIC OVERVIEW
The US has the largest and most technologically
powerful economy in the world, with a per capita GDP of $48,100. In this
market-oriented economy, private individuals and business firms make most of
the decisions, and the federal and state governments buy needed goods and
services predominantly in the private marketplace. US business firms enjoy
greater flexibility than their counterparts in Western Europe and Japan in
decisions to expand capital plant, to lay off surplus workers, and to develop
new products. At the same time, they face higher barriers to enter their
rivals' home markets than foreign firms face entering US markets. US firms are
at or near the forefront in technological advances, especially in computers and
in medical, aerospace, and military equipment; their advantage has narrowed
since the end of World War II. The onrush of technology largely explains the
gradual development of a "two-tier labor market" in which those at
the bottom lack the education and the professional/technical skills of those at
the top and, more and more, fail to get comparable pay raises, health insurance
coverage, and other benefits. Since 1975, practically all the gains in
household income have gone to the top 20% of households. Since 1996, dividends
and capital gains have grown faster than wages or any other category of
after-tax income. Imported oil accounts for nearly 55% of US consumption. Oil
prices doubled between 2001 and 2006, the year home prices peaked; higher
gasoline prices ate into consumers' budgets and many individuals fell behind in
their mortgage payments. Oil prices increased another 50% between 2006 and
2008. In 2008, soaring oil prices threatened inflation and caused a
deterioration in the US merchandise trade deficit, which peaked at $840
billion. In 2009, with the global recession deepening, oil prices dropped 40%
and the US trade deficit shrank, as US domestic demand declined, but in 2011
the trade deficit ramped back up to $803 billion, as oil prices climbed once
more. The global economic downturn, the sub-prime mortgage crisis, investment
bank failures, falling home prices, and tight credit pushed the United States
into a recession by mid-2008. GDP contracted until the third quarter of 2009,
making this the deepest and longest downturn since the Great Depression. To
help stabilize financial markets, in October 2008 the US Congress established a
$700 billion Troubled Asset Relief Program (TARP). The government used some of
these funds to purchase equity in US banks and industrial corporations, much of
which had been returned to the government by early 2011. In January 2009 the US
Congress passed and President Barack OBAMA signed a bill providing an
additional $787 billion fiscal stimulus to be used over 10 years - two-thirds
on additional spending and one-third on tax cuts - to create jobs and to help
the economy recover. In 2010 and 2011, the federal budget deficit reached
nearly 9% of GDP; total government revenues from taxes and other sources are
lower, as a percentage of GDP, than that of most other developed countries. The
wars in Iraq and Afghanistan required major shifts in national resources from
civilian to military purposes and contributed to the growth of the US budget
deficit and public debt - through 2011, the direct costs of the wars totaled
nearly $900 billion, according to US government figures. In March 2010,
President OBAMA signed into law the Patient Protection and Affordable Care Act,
a health insurance reform bill that will extend coverage to an additional 32
million American citizens by 2016, through private health insurance for the
general population and Medicaid for the impoverished. Total spending on health
care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In
July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer
Protection Act, a law designed to promote financial stability by protecting
consumers from financial abuses, ending taxpayer bailouts of financial firms,
dealing with troubled banks that are "too big to fail," and improving
accountability and transparency in the financial system - in particular, by
requiring certain financial derivatives to be traded in markets that are
subject to government regulation and oversight. Long-term problems include
inadequate investment in deteriorating infrastructure, rapidly rising medical
and pension costs of an aging population, sizable current account and budget
deficits - including significant budget shortages for state governments -
energy shortages, and stagnation of wages for lower-income families. Source : CIA
Company name
AVIATION CAPITAL GROUP CORP.
Address: 610
Newport Center Drive, Ste 1400, Newport Beach, CA 92660 USA
Telephone: +1
949-219-4600
Fax: +1
949-759-5675
Website: www.aviationcapitalgroup.com
Corporate ID#: 2398989
State: Delaware
Judicial form: Corporation
– Profit
Date incorporated: 04-29-1994
Date founded: 1989
Stock: -
Value: -
Name of manager: R. Stephen HANNAHS
ACTIVITIES
& OPERATIONS
Business:
Aviation Capital Group Corp., together with
its subsidiaries, engages in the acquisition, management, and leasing of
commercial jet aircrafts to international airlines worldwide. It also provides
asset management services, including advisory and remarketing services for
third-party aircraft owners, investors, and institutional investment firms; and
sells and/or trades aircrafts, as well as offers various technical services.
The company owns and manages a portfolio of
260 single and twin aisle commercial jet aircrafts comprising Airbus A320
family, Airbus A330, Boeing 737 Classics and Next Generations, Boeing 757 and
767, and freighters.
It serves various companies in aircraft
operations, manufacturing, and sales and leasing, as well as banks, insurance
companies, and other institutional clients. The company was founded in 1989 and
is headquartered in Newport Beach, California.
Aviation Capital Group Corp. is a subsidiary
of Pacific Mutual Holding Company.
Suppliers include:
SINGAPORE JAMCO PRIVATE LIMITED
NO. 8 Loyang Lane, Singapore
RECARO AIRCRAFT SEATING GMBH
Daimlerstrasse 21 D-74523 Schwaebisch Hall -
Germany
IFS GLOBAL LOGISTICS
Ifs Logistics Park Seven Mile Straight Antrim bt41 4qe Northern Ireland, UK
EIN: -
Staff: 89
Operations & branches:
At the headquarters, we find the corporate office, on lease.
The Company maintains branches located in
Stamford, CT; Bellevue, WA;
Boca Raton, FL. London, UK; Santiago, Chile;
Shanghai, China; and Singapore.
SHAREHOLDERS & MANAGERS
Shareholders:
PACIFIC MUTUAL HOLDING COMPANY 91%
700 Newport Center Drive
Newport Beach, CA 92660
Management:
Stephen HANNAHS is co-founder and CEO.
Mr. R. Stephen Hannahs Co-founded Aviation
Capital Group Corp. and serves as its Chief Executive Officer and Group Managing
Director.
Mr. Hannahs co-founded Aviation Capital
Group Corp. in 1989 and served as President of the Board. From 1982 to 1989, he
served as an Executive Vice President of Integrated Resources Inc. and
President of Integrated Resources Aircraft Corporation. He served as the
President of Electra Aviation Inc.
He has been involved with aviation and
aircraft finance and leasing for over 25 years. Mr. Hannahs has performed in
various capacities during this period including aircraft marketing and
remarketing. He serves as a Director of Aviation Capital Group Corp. Mr.
Hannahs is a former officer in the United States Air Force.
Mr. Hannahs holds BA and MBA in Finance
degrees from University of Wisconsin-Madison in 1969 and 1973 respectively.
On September 12, 2012, Aviation Capital
Group Corp. announced that Denis P. Kalscheur has been named chief executive
officer of the company, effective January 1, 2013. Mr. Kalscheur will succeed
R. Stephen Hannahs, who will retire at the end of the year. Mr. Hannahs is one
of the founders of ACG and has overseen its growth as group managing director
and CEO since ACG's founding in 1989. Mr. Hannahs will continue to serve on the
board of ACG, in the new position of vice-chairman, and provide advice to the
chairman and CEO regarding strategic direction and other matters. Mr. Kalscheur
joined Pacific Life in 2007 where he currently serves as senior vice president
and treasurer. He is responsible for the company's corporate finance and
treasury operations, its institutional investment products business, financial
planning and budgeting, as well as other strategic initiatives. Mr. Kalscheur
also served as chairman of College Savings Bank prior to its sale by Pacific
LifeCorp earlier this year. Mr. Kalscheur's previous experience in the airline
industry includes having served as CEO of Elsinore Aerospace, a global aviation
engineering and certification, maintenance, modification, and quality
management company. In addition, he served as CFO of AirCal/ACI Holdings Inc.
Benjamin L. JUNG is co-founder and COO
Mr. Benjamin L. Jung Co-founded Aviation
Capital Group Corporation in 1989 and served as its Managing Director,
Administration and Chief Operating Officer. Mr. Jung has been an aviation
related attorney for over 20 years.
Aviation Capital Group Corporation is an
affiliate of Pacific Life Insurance Company and Pacific Mutual Holding Company.
He served as senior vice president of Electra Aviation, Inc. Mr. Jung served as
Executive Vice President of Integrated Resources Aircraft Corporation having
previously served in various positions since 1981.
He served as Senior Vice President and as
Attorney of Manufacturers Hanover Leasing Corporation and served as an
associate with two law firms from 1971 to 1979. He serves as Director of Aviation
Capital Group Corp.
Mr. Jung holds BA in 1967 and MA degrees
from the State University of California, San Francisco and a JD degree from
Boston University School of Law in 1974. He was admitted to the Bar of the
State of New York in 1975 and obtained an LLM in taxation from New York
University School of Law in 1985.
Subsidiaries
And partnership: None
FINANCIALS
In United States, privately held corporations are not required to
publish any financials.
On a direct call, a financial assistant controlled the present report.
Sales declared for year 2011 is in the range of USD 12,000,000= with a
small profit.
Equity 2011:USD 1.2 billion.
On September 2012, Standard & Poor’s downgraded the Company,
expressing concern that Aviation Capital Group Corp. credit metrics have been
weaker than expected.
Banks: Wells Fargo Bank
JP Morgan Chase Bank
...
LEGAL FILINGS
Legal filings & complaints:
As of today date, there is no legal filing
pending with the Courts.
Secured debts summary (UCC): None (in California)
Haut du formulaire
COMPANY
CREDIT HISTORY
Trade references:
Date reported: August 2012
High credit: USD 20,000
Now owing: 0
Past due: 0
Last purchase: July 2012
Line of business: Office
supply
Paying status: On terms
Date reported: August 2012
High credit: USD 150,000+
Now owing: 0
Past due: 0
Last purchase: July 2012
Line of business: Payroll
Paying status: As agreed
Date reported: August 2012
High credit: USD 800
Now owing: 0
Past due: 0
Last purchase: July 2012
Line of business: Telecommunications
Paying status: On terms
Domestic credit history:
Domestic credit history appears as follow:
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Monthly
Payment Trends - Recent Activity |
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National Credit Bureaus gave a satisfying credit rating.
According to our credit analysts, during the
last 6 months, 98% of trade experience indicates a regular payment.
International
credit history:
Payments of imports are currently made with
an average of 2 to 5 days beyond terms.
Other comments:
The Company maintains a regular business.
The banks and financial institutions confirmed a satisfying credit
history.
The Company is in good standing.
This means that all local and federal taxes were paid on due date.
The risk is low.
Our opinion:
A business connection may be conducted.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.07 |
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1 |
Rs.84.94 |
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Euro |
1 |
Rs.68.23 |
INFORMATION DETAILS
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Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.