Air Canada, Emirates and IAG working on possible EETC issues

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Air Canada, Emirates and International Airlines Group (IAG) are in the market working towards possible secured enhanced equipment trust certificate (EETC) aircraft financings, say sources.

All three carriers have expressed interest in the capital markets aircraft financing option but only Emirates, with its $587.5 million Doric Nimrod Air Two deal last year, has issued a EETC.

The timeline of the possible deals is unclear at this point but the market could see debt from all three of these issuers before the end of the second quarter if all goes well, say sources close to the market. All three carriers have unfinanced aircraft deliveries this year.

Air Canada has four Boeing 777-300ER deliveries scheduled for this year and one in 2014, according to Flightglobal's Ascend Online database. The carrier has said that it is evaluating "financing alternatives" for between $550 million and $650 million in debt for all five aircraft.

The airline welcomed Canada's ratification of the Cape Town treaty this past December, which allows for the issuance of EETCs.

Emirates has deliveries of 10 Airbus A380s and one 777-300ER scheduled this year, according to Ascend.

IAG subsidiary British Airways has deliveries of three Airbus A320s, three A380s and four Boeing 787s, and its subsidiary Iberia has five A320s and three Airbus A330-300s scheduled this year, according to Ascend.

The majority of attendees at the ISTAT Americas aircraft financing conference in Orlando earlier this month anticipated that there would be between $12 billion to $15 billion in secured aircraft debt raised in the capital markets this year. This compares to about $13 billion in 2012.