2020
Chairmanʼs Review
SMBC Aviation Capital achieved another year of record profitability for the financial year ending 31 March 2020.
While the operating environment for the global aviation sector has changed dramatically, this excellent performance has given the company a very strong platform from which to deal with the challenges the industry now faces.
I was very honoured to be asked to assume the role of Chairman of the Company, succeeding Shinichi Hayashida who made such a strong contribution to the business over the past seven years. He was the Company’s first chairman following its acquisition by Sumitomo Mitsui Financial Group, owner of Sumitomo Mitsui Banking Corporation, and Sumitomo Mitsui Finance & Leasing Co. Ltd and Sumitomo Corporation.
I was very honoured to be asked to assume the role of Chairman of the company, succeeding Shinichi Hayashida who made such a strong contribution to the business over the past seven years.
During his tenure, Mr Hayashida successfully managed the relationship between the shareholder and the leadership team and ensured the Company was strengthened through collaboration.
I assumed the Chairmanship on 1 April 2020. I already had been well acquainted with the Company having been involved in the acquisition team back in 2012. I am pleased to say that my expectations of the Company and the performance of the team in dealing with Covid-19 have been surpassed since my arrival.
The team has been very active in working with customers to support them in dealing with the crisis and this activity has intensified over the past number of weeks. With the support of our shareholder, the Company has taken the strategic decision to take a disciplined approach to pursuing new opportunities which will see us leverage our strong capital position to offer flexible, long-term financing solutions to our customers. This has seen us enter into selective sale and leaseback arrangements with customers who require innovative financing solutions. Since the financial year end, we have successfully completed transactions with WizzAir, easyJet and Turkish Airlines, among others.
The team has been very active in working with customers to support them in dealing with the crisis.
This is evidence of our ability to continue to adapt to and identify market opportunities in the midst of an unprecedented crisis due to our inherent strengths as a Company. Most of the members of our leadership team have been with the company for almost two decades and have experience in dealing with other aviation crises such as 9/11 and the Global Financial Crisis a decade ago.
That team has been strengthened over the years and with the financial support of our shareholder has ensured that the company is capable of adapting rapidly to new circumstances and responding to events as they arise. At this point, we cannot predict the outcome of Covid-19 in terms of its longer term impact on both the aviation sector and the global economy but it is my firm belief that SMBC Aviation Capital will emerge from the crisis in a stronger competitive position.
Air travel remains a critical component of economic growth across the world. It is imperative therefore that airlines resume flying in a way that is safe to do so. SMBC Aviation Capital and the rest of the aircraft leasing industry will do all in its power to facilitate this. We also have a role to play in ensuring that this is achieved in a manner that is sustainable for the sector and the environment.
This is in line with our philosophy of long term, sustainable growth and making a positive overall contribution to society.
In conclusion, I would like to express my admiration for and gratitude to all of the people employed by the company who switched to working remotely and maintained business as usual while continuing to serve our customers with the highest standards of professionalism and generate new business opportunities. I would also like to thank the Board and the senior management team for their support and leadership during this time.
Tom Tanaka
CHAIRMAN