In its annual report, leasing entity Amedeo Air Four Plus which has a portfolio of twelve aircraft, six Airbus A380-800 and two Boeing 777-300ER leased to Emirates and four Airbus A350-900 leased to Thai Airways International, disclosed that Thai has failed to pay any lease payments since 22 May 2020. In March, Thai had written to the lessor to request support for the continued lease of four A350s. Although an agreement for the partial deferral of lease payments was negotiated for a six month period commencing in April 2020 the appropriate signatures on the documents were not received from the airline. A month later Thai filed for bankruptcy. Amedeo says that it remains in discussions with the lending banks for the Thai transaction. On the understanding that no payments are to be received from Thai before the end of September, Amedeo has requested that the lending banks draw on the security deposits to cover interest only payments under the debt during that period. Further developments are expected in mid-August.
The report also notes that in April Emirates formally requested “some form of financial accommodation” but maintained that "the lease rental will remain current and up- to-date until an agreed contractual position is achieved". Amedeo confirms that it is in discussions with the lending banks to see “if any assistance can be extended to Emirates but no progress is expected prior to the recapitalisation of Emirates by the Government of Dubai”.
In February 2020, Amedeo Air Four Plus confirms that it sold two A380-800 aircraft to Etihad, generating net cash proceeds “in excess of £130 million after repayment of financing arrangements on the aircraft, swap breakage and facility prepayment costs together with transaction costs, fees and expenses”.
The report notes that the company directors and Amedeo are monitoring the effects of COVID-19 on its financial position and warns that a prolonged impact on the aviation industry may lead to the inability of lessees to pay rent and ultimately have an adverse impact on the future value of the aircraft assets owned by the Group, as well as on the sale, re-lease, refinancing or other disposition.