A Lifetime in ABS

In this article, Fexco Aviation Services CEO Gerry Hastings looks back at the history of ABS transactions in aviation, beginning in Shannon

March 28, 1996 — thirty years ago this year — marked the closing of the Airplanes Group aircraft ABS. At the time, none of us fully realised how new and transformative the concept would become for aviation finance. For me personally, it was the start of a career that has spanned three decades and taken me deep into the development of an entire industry built around structured aviation financing.

Back then, the idea of a Managing Agent was still taking shape. Today, it’s a familiar role across aviation, centred on producing Monthly Investor Reports and carrying out the accounting and company secretarial responsibilities that keep these structures running smoothly. It has been rewarding to watch this role mature — and to have played a part in shaping it along the way.

Like so many aviation stories, this one begins in Shannon with GPA and Tony Ryan. The influence of GPA reached far beyond the high‑profile parts of its history. The people, the ideas, and the companies that emerged afterward helped define what aviation finance looks like today. Many of those early experiences also laid the foundation for what eventually became the modern Managing Agent function.

Over time, it has evolved well beyond ABS and is now a practical, cost‑effective solution for a wide variety of aviation entities. It’s been interesting to see how the industry increasingly turns to outsourced support across finance, legal, and technical areas — allowing new businesses to get up and running faster than ever.

ABS structures themselves have changed dramatically since the early days. Cashflow mechanics, maintenance reserves, payment waterfalls, and protections such as DSCR and Excess Proceeds tests have all developed into far more refined tools. Even bank‑financed warehouse facilities now often mirror ABS‑style covenants — something that would have been hard to imagine in the 1990s.

For years, there has been talk about creating a structure to replace the ABS model. But looking back over three decades, I’m not sure replacement is what we need. The steady improvements and the stronger protections built into today’s structures show how powerful incremental evolution can be. And who knows — perhaps we’ll even see the return of a tradable E‑Note someday.

As I reflect on these thirty years, I’m grateful for the people, the lessons, and the unexpected turns that shaped this journey. I’m looking forward to exploring more of the history and future of ABS and aviation finance, and I’d welcome any thoughts or suggestions from those who’ve been part of this story — or who are shaping the next chapter.

	Gerry Hastings CEO [email protected]