What does Standard Chartered’s aviation finance business focus on, and how does it support the evolving needs of the sector?

Abhishek: Our priority is always our clients, where we aim to be a one-stop-shop for all their needs, providing end-to-end support for airlines, lessors, OEMs and financial investors.

As a cross-border bank, we offer a full product suite for all clients across our footprint in Asia, the Middle East, Africa, Europe and the Americas. On the financing side, this product suite includes bilateral loans, underwrites, finance leases, debt-in-lease, pre-delivery payments, export credit, insurance products like ANPI, and capital markets.

Beyond financing, we also provide capital structure rating advisory, interest rate swaps, fuel hedging, FX services and access to our carbon trading experts and partnerships, of which we are a founding member of Singapore’s Climate Impact X (or CIX as its known), a joint venture aiming to be a global exchange and marketplace for high-quality carbon credits.

Standard Chartered is committed to sustainability, and we continue to support our clients as they navigate the transition, deploying financial solutions that facilitate low-carbon growth. We leverage our transition finance expertise and offer to support clients across this hard-to-abate sector as they decarbonize, and we’re seeing real appetite for transition finance solutions across Asia.

We also partner with our clients and industry leaders on matters of industry insights and the evolving regulatory and legal landscape,. This is evident not only through our partnership with Ishka, and membership of key bodies such as the Aviation Working Group; we are also a founding member of the Pegasus Guidelines, a voluntary standard for financial institutions operating in the aviation sector to independently measure and disclose the emissions intensity, which was successfully launched last year.

Against a backdrop of industry transition, interest rate volatility, and fleet renewal—how can Standard Chartered support airlines and lessors going forward? Are there new financing models, products, or partnerships you see gaining momentum?

Abhishek: Aside from those that you mentioned, there is the ongoing discussion around evolving global supply chains, trade policy shifts, and related market developments.

So how can Standard Chartered support our clients going through these changes?

The easiest way is to bring the best and brightest Aviation experts together to share their insights on how to “Navigate the New Norm”, as we are doing in this opening session of this Ishka conference, with Standard Chartered as host sponsor.

I am looking forward to kicking off this session with a keynote interview with the illustrious Ms Jo-Ann Tan, CFO of Singapore Airlines. We will also be contributing Standard Chartered’s top talents in five other panels, covering pertinent topics such as “Where is the smart capital deploying?”, “Navigating Shifting Lender Strategies in APAC”, “State of India’s Finance”, “Breaking the WACC Barrier” and “Accessing Innovative Airline Financing amidst global uncertainty”.

As for the second part of your question, yes, we do see new financing models, products and partnerships gaining momentum.

There is growing demand for diversified capital sources and funding structures while conventional banking grapples with higher capital costs. The key here is to leverage our multi-product capabilities to look for holistic solutions, helping clients align their funding strategy with asset strategy. To achieve that, we work with export credit agencies and multilateral institutions that provide aircraft non-payment insurance, private credit and ESG-focused investors to unlock new sources of capital, particularly for new-technology aircraft with lower emissions profiles.

These collaborations help to unlock a diversified pool of capital for clients, aligning with the sector’s transition goals and our own sustainability targets. Perhaps to illustrate our ability to evolve, innovate and deliver for clients, we are very proud to have partnered with Air India and Gift City on a landmark transaction recognized by Ishka as the Best Asian Deal in 2024.

Owing to our 165 years of experience in India and as a leading global bank in transportation finance franchise, Standard Chartered was approached by the Government of India to develop the regulatory and financing development framework for GIFT. This included sharing market perspectives to support the development of a financing framework aimed at attracting capital and positioning the region as a hub for transportation ownership and leasing.

Our early engagement in collaboration with major legal, tax, business leaders and policy makers enabled Standard Chartered to take decisive action in executing an international orphan trust structure with Vistara through GIFT IFSC.

It is encouraging to see that many other capital providers have since adopted a similar approach, further reinforced by the ratification of Cape Town convention. This milestone reaffirmed our commitment to supporting clients unlocking capital and driving growth across the region.

As a major global bank focused on the transportation sector, what do you see as the key risks and opportunities in aviation finance in the Asia-Pacific region for the next two to three years?

Abhishek: Firstly, passenger demand. The APAC region has the strongest long-term demand fundamentals, driven by rapid urbanization, rising middle-class travel demand, and growing intra-Asia connectivity. As new airports and secondary hubs emerge, there will be significant opportunities for regional carriers to expand their presence.

Secondly, the need for fleet modernization. Driven by passenger demand, there is huge potential to help our clients transit towards more fuel-efficient aircraft that will unlock operational savings and improve average emission intensity. We have also witnessed airlines in APAC being incentivized to place aircraft orders as to help strengthen supply chain resilience and better align fleet demand.

Finally, we see an opportunity in the alternative finance space. There will be increasing demand for structured finance, such as JOLCOs, along with ESG-linked products. Capital market access will create new avenues to fund growth and unlock new sources of capital.

In terms of risks:
The first would be continuation of well-known Supply Chain issues. Persistent backlogs in new aircraft deliveries, along with availability of parts are dampening fleet renewal plans, creating a mismatch between demand and capacity recovery.

The second risk would be the volatility in interest rates, currency, and capital. This will continue to impact funding costs, heightening refinancing risks, particularly for smaller airlines and regional players.

The last risk relates to uneven regulatory frameworks and SAF availability. Airlines are facing growing ESG pressure, but regulatory SAF uplift requirements remain uneven across Asia. This lack of clarity poses a challenge for industry players.

Standard Chartered’s deep roots in Asia and strong global connectivity give us a unique edge: the ability to combine breadth of expertise with innovative financing to help clients navigate complexity. We partner with companies to optimise capital structures, align funding with strategy, and unlock growth across the world’s most dynamic trade corridors.

Looking ahead our focus is clear—delivering the right capital, at the right time, through the right structures—so our clients can achieve sustainable, long-term growth.

What are the most significant trends you're seeing in technical transactions across APAC, particularly as the market continues transitions from recovery to growth?

There is a shortage of licensed aircraft mechanics and maintenance capacity for new technology aircraft, especially widebodies, which is increasing timelines when you are looking to book in aircraft with MROs. That’s playing into the wider context of supply chain issues, against a backdrop where we expect a continuing rebound in aircraft transition volume over the next three years.

We’re seeing evolution in the aftermarket products for engines which has an impact on how new deals are structured and the way we plan transitions. You are also seeing a trade-off between the fuel savings on engines against the cost of the increased maintenance frequency and rising engine part prices.

How are fleet transitions – especially involving new-gen aircraft – impacting technical teams and redelivery processes in today’s leasing environment?

We have been managing more new generation aircraft transitions in recent years as the market has emerged from the impact of the pandemic. This provided early insight into some new issues that will require management on future deliveries including increased software complexity and the limited MRO footprint that exists for new technology aircraft.

You’ve worked on aircraft all over the world – what’s one surprising or memorable technical challenge you’ve faced that still makes you smile (or shake your head)?

In our world you sometimes face the challenge of securing aircraft records at very short notice. There’s been several occasions when I’ve had to share a hotel room with 50 or more boxes of records for company.

Your new book, 10 Philosophies of the Business of Air Transport, explores the strategic mindset behind successful aviation leadership. What inspired you to write it, and how do you see its ideas influencing the next generation of airline business models?

700+ scheduled airlines operate today. How many are profitable? How many struggled to break even pre-COVID but turned profitable post-COVID? COVID allowed leaders and students of the industry to observe firsthand the fundamentals of the industry play out. The fundamentals are always there but based on prevailing sentiments can get shadowed. Or worse, distorted through popular narratives. This book is a data-driven reminder of the basics.

Oddly, innovation rarely stems from comfort. Difficult times - such as COVID - forced airlines to revisit basics, leading to a doubling down on strengths, pivoting to other business models, or diversifying fleet types and revenue streams.

That’s the aim of the book - to serve as a humble reminder of the fundamentals. Top-of-mind fundamentals enable better decisions. Better decisions may spawn new business models.

You’ll be speaking on our panel about the future of airline business models at Ishka’s Singapore conference. Without giving too much away, what’s one key shift you believe the industry needs to embrace to stay competitive over the next decade?

Air transport is an essential service - there is no substitute for our industry when it comes to speed, safety and security over distance. Case in point, we have regressed as an industry - from crossing the Atlantic at twice the speed of sound to being content flying under the sound barrier. There was the misjudged threat from virtual meetings replacing in-person meetings. It hasn't. The industry is so essential it has no incentive to stay "competitive" in the classic sense.

Good times - when shareholder value is highest - attract more players into the industry, making smaller the slice of the "return-on-invested-capital pie", causing tough times. Tough times lead to differentiation, consolidation and/or exits, leading to better times. We can never escape this sentiment-driven cyclic nature of the industry.

Staying true to the fundamentals allows the industry to stay competitive from an investment perspective, where value is provided to both the market and to the airline's shareholders. Win-win, no win-lose, lose-win, or lose-lose.

As someone deeply involved in airline network planning and aircraft economics, what trends are you seeing in how airlines across Asia Pacific are reshaping their business models post-pandemic—especially in terms of fleet strategy and regional connectivity?

COVID has forced airlines to revisit fundamentals. The "one-airplane-fits-all" mantra has been challenged since 2019 - OEM diversity has shown value, be it on the engine or the airframe side. Asia-Pacific's obsession on cost-per-seat has waned, with trip costs gaining due importance. Low-cost carriers, faced with high costs and shifting market preferences are challenging LCC "fundamentals" with fleet complexity while doubling down on strengths, including strengthening home-market presence while abandoning low-cost long-haul aspirations.

Capacity constraints, driven by geopolitical developments and supply chain concerns, have given birth to prudence. Airlines better pick their battles, aligning capacity to demand and deploying capacity to focus markets. Full-service network carriers are playing the "long" game, steering clear of a head-on collision with low-cost competitors on the short haul space.

COVID was a true test of character, and operators today are paying the price for their behavior in that period. COVID underscored the value of owned aircraft. Well run operators sold-and-leased back owned assets to raise crucial cash in-COVID, while honoring lessor commitments. Beefing up the balance sheet is viewed as key, while diversifying sources of financing is viewed as critical.

The simplest fleet "strategy" for countries impacted by the tariffs is to force their airlines to choose airframes and engines from certain OEMs. This reminds us that while an airline provides essential public transport, it also serves as a political tool.

ADE has seen impressive growth recently, with all 16 hangar lines operating at full capacity and plans to add even more capacity in the coming years. What are the main drivers behind this surge in demand, and how is ADE positioning itself to stay ahead in the competitive MRO market?

The surge in demand is driven by the strong post-pandemic recovery of the aviation sector, especially in the Asia-Pacific region, where airlines are actively seeking faster, more cost-efficient, and digitally enabled MRO solutions. At ADE, we’ve positioned ourselves to meet this demand by embracing automation, seamless processes, and AI-driven planning, allowing us to operate at scale without compromising on safety, quality, or turnaround time. Our 16 hangar lines are currently running at full capacity, powered by a highly skilled and certified workforce, many of whom have progressed through our internal talent pipeline. We are also proud to hold globally recognised certifications that demonstrate our commitment to the highest international standards.

Your team recently secured both EASA and FAA certifications, enabling ADE to expand its services to more international airlines. How do these global certifications change your strategic outlook, especially regarding expansion into new markets like Indonesia, the Philippines, and Thailand?

While FAA and EASA are the jewels in our certification crown and were only recently awarded to us, we’ve long been recognised as an Approved Maintenance Organisation (AMO) in 10 countries across the region—namely Malaysia, Indonesia, Cambodia, the Philippines, Singapore, Vietnam, India, Nepal, Thailand, and Myanmar. This broad network of approvals has allowed us to build trust with regional carriers over the years, and the addition of EASA and FAA now positions us to further expand our global footprint and serve an even wider base of international airlines -affirming that our standards meet the highest global benchmarks.

Digital transformation is a major focus for ADE, particularly with your new hangar facility at KLIA. Can you share some specific ways digitalization and automation are improving efficiency and safety in your operations?

Digital transformation is a key pillar of our growth strategy at ADE—and it’s quite literally in our company name. We’ve embedded advanced digital solutions across our operations, including real-time aircraft maintenance tracking, fleet management, aircraft health monitoring, and workforce optimisation—strengthening every aspect of aircraft maintenance and engineering management.

Our proprietary platforms play a central role in this journey. AEROTRADE®, Asia’s first-of-its-kind aviation marketplace, has quickly emerged as a game-changer in aviation procurement, offering over USD 244 million worth of inventory for both Airbus and Boeing aircraft. It has attracted more than 150 global players, including airlines, MROs, distributors, OEMs, agents, and stockists. Meanwhile, ELEVADE™, our end-to-end maintenance and operations ecosystem, is built on three pillars—Fleet, People, and Material—and currently monitors over 200 aircraft and 3,000 personnel across Asean. Together, these innovations not only improve safety, compliance, and turnaround times but also significantly boost operational efficiency, delivering greater value to our airline partners.

At the upcoming ISHKA Singapore conference, industry leaders will be discussing the future of aviation in Asia. What key trends or challenges do you think will shape the MRO sector in the region over the next five years, and what role do you see ADE playing in this evolution?

The next five years will be transformative for the MRO sector in Asia Pacific—driven by unprecedented fleet growth, supply chain recalibration, and a digital revolution in aircraft maintenance. But with transformation comes challenge.

• Firstly, the region will welcome thousands of new aircraft, while simultaneously extending the life of older fleets. This dual pressure is creating a surge in demand for both line and base maintenance services—demand that must be met without compromising efficiency or turnaround time.
• Secondly, the industry continues to face deepening supply chain constraints and labour shortages. Lead times for parts have grown dramatically, and there's an urgent need to attract, train and retain the next generation of skilled engineers and technicians across the region.
• Thirdly, sustainability and digitalisation are no longer buzzwords—they are expectations. Airlines are increasingly prioritising MRO partners who can reduce waste, improve efficiency through AI and data analytics, and contribute meaningfully to ESG goals.

At ADE, we see these shifts not as roadblocks—but as a runway for reinvention.

We’re investing heavily in predictive maintenance, real-time data solutions, and digital supply chain tools through our digital platforms. Our state-of-the-art 14-line MRO hangar—the largest in Malaysia—positions us to handle growing demand at scale. And we’re not stopping there—we’re planning to expand with even more lines in the near future, strengthening our ability to serve the region’s fast-growing fleet with greater flexibility and faster turnaround.

In essence, ADE’s role is clear: to lead the region’s MRO transformation by being faster, smarter, and greener—while staying grounded in the fundamentals of safety, quality, and reliability.