Leasing Business News: Un-biased Leasing Information

supplies businesses and consumers with information about the leasing industry. We have independent, unbiased, accurate, and fair news about leasing. Feel free to browse our site and learn everything you need to about leasing.

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Sales: 25 Territory Managers needed. Generous comp. Provide custom telemarketing your database. Provide 800#. Strong support (System 1 Advantage). E-mail Bruce Larsen at LeasingPartnersCapital@msn.com (952) 890-5092.

Sales: National: Medical & IT Equipment- Plus. Seeking professionals w/solid book of business & strong work ethics. Exceptional support, commissions & expenses. Email: info@chaseindustries.com 800-968-5000 UAEL EAEL

About Chase Industries, incorporated in 1993, currently has six regional offices throughout the United States. We work to provide a straightforward - honest approach to offering the best financial services to our vendors and their customers - without all the surprises. www.chaseindustries.com

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““Dancing the Night Away--From top right, Ginny Young, Brava Capital, and Robert Rodi, CLP, the American Lease Exchange, show off their moves at Saturday’s ‘Roaring 20’s Dinner Gala. Inset: Pat Roberts, M&R Leasing, Inc., and Phil Dushey, Global Leasing Services at the Roaring 20’s.”

WAEL/UAEL functions are some of the greatest memories anyone could have. The leasing business has been good, not only good from a business sense, but for

There is life out there! Lessons learned, best markets, proven practices, relationships, GREAT funding programs - exploit the recovery - Dwight Galloway, CLP - Republic Leasing Company and a host of your own members, CLP's and professionals will share money making ideas!

The Rancho Las Palmas Marriott has reduced convention rates for April 29 - May 4, 2003 for the UAEL Spring Education Conference. Rooms are going quickly. To retain your room at this deluxe resort please contact the Rancho Las Palmas Marriott directly at (760) 568-2727 or the Marriott Reservations line at (800) 458-8786 and ask for the UAEL group reservations.

Association of Equipment Leasing sponsored Alaskan Cruise July 19-26, 2003. Anyone planning to take advantage of this vacation opportunity should reserve their space immediately at www.uael.org

A number of people have confirmed their cabin. Quite a few more have shown interest and made a verbal commitment. The time to formally commit is upon us. This is reported to be the best of the Summer Alaskan Cruises and the price is very competitive. UAEL benefits from all participants, members and non-members.

Join us for a great weekend of education and networking with fellow leasing professionals. The General Session on Friday is entitled "Past, Present and Future". It is one you won't want to miss. On Saturday afternoon you will have an opportunity to "Meet and Greet" EAEL Member Funding Sources while you enjoy an ice cream treat.

Our Keynote Speaker, Cokie Roberts, ABC News chief congressional analyst will open the weekend and Anthony T. Galie, author of "The Subconscious Aspects of Business" will entertain everyone at our closing night reception.

Visit the EAEL website -- www.eael.org to view the entire Agenda and to register for the Conference or call Alison Pryor at 914-381-5830 today to have a Conference Brochure mailed to you. If you want to walk in, rather than register now,

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Kit your news letter SUCKS and I wish there was a way to disband it. But in the free society that we live in every one is entitled to his or her opinion. My wish is that you go away Kit. Enjoy retirement, take up a hobby or something but please stop the negative press our industry needs positive reinforcement not

(I try to put humor in the headlines and include other stories---some readers complain about that, too. Believe me, I am not in an “easy” chair, nor is the leasing industry:

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We at Plymouth Leasing used HP Financial Services as a tier 1 lender. We submitted transactions that would have been approved at most of our A Banks. We were in the process of building a great partnership based on HP's prompt service, quick turnaround, software guidelines and strong name in the technology world.

We received a call this afternoon from our HP sales rep explaining they were pending all broker business for 30 days in reaction to recent write-offs. I am told it is effective across the board for all brokers.

As an industry, we could have done better than this. I can t tell you how many calls or faxes we received soliciting our declined business because these companies had a line (HP) who would approve anything. Just because an underwriter has an expanded credit window does that mean we have to fill it full of bad business?

This leads me to brokers complaining about Reps and Warranties. What are you afraid of? The language of these agreements is intended to have teeth so that it can be used if you turn out to be an idiot. They want to be able to enforce action against anyone who knowingly submits false information.

(Mr. Neese, congratulations on surviving 17 years in the leasing business. I have been in the business as broker, discounter, lessor, banker for 32 years and know

considering today---a time I have never seen anything like since I started in 1971.

Mr. Simpson, I don’t think it was “false” information.” It was never stated

The point of the story is HP/Compaq at one time had a mission centered on their company’s product; their goal was to move equipment. They had a criteria

to reflect their goal. When they opened their third party operation up, changed from a Captive Vendor, they evidently thought using their own paper, $1.00 buyouts, tough documentation, checking dealers, would protect them. CIT, Westinghouse, Ford Motor Credit in the old days made the same mistake.

HP had the money to put out, extremely low cost of funds; they had the operation going, and saw an opening in the market place. A lot of this was happening before and right after the merger, and to pump up the income, the sales, they kept the same credit criteria and low rates. It was a great idea.

a reserve for the credit criteria, it would have greatly changed the results for

their original mission ( whether how much they should have tighten credit is a ratio of how much business you want---when you are moving product, it is quite

different than going to a third party as your profit is in money-on-money. When you want to buy into a market place, you have to do something different, and

Many brokers did not send “false information” as the criteria was different.

Leasing News was not writing about any special leasing company or any specific broker saying they were doing anything “illegal” or “unethical.” You place a deal to a funder who will accept the credit with the rate and terms that will make

protection, an occasional “exception” or “ accommodation”, efficiency of

but received an edition elsewhere. If Mr. Neese had been reading Leasing News for the last five years, he would have seen our “ombudsman” work, alerts,

in the process---all segments of the leasing industry. (website started May,2000)

I suggest if you want to stay informed about what is really happening in the industry, you read Leasing News. Mr. McKay, don’t bury your head in the sand or say we “suck” because we report “bad news.”

Get active in a leasing association, do something, support your industry---This is your livelihood. Get involved. The best place is the leasing association that

fits your type of business or personality or where you will “enjoy” spending

chairman, workshop speaker. Get involved!!! Do something, just don’t sit there.

" You should email the paid version before the standard version. I get the standard version very, very early, and the other much, much later. Why

a fast, powerful computer, got her a top speed internet connection, and pay her to get up, usually at 6am every morning, to convert Leasing News

I would say, as a rule of thumb, the up-grade edition goes out 7:30am to 8:30am, the latest, California time.

2am; sometimes later.. This gets all the morning newspapers on line, gets all the next day news, and makes the edition available from 5am to 6am East Coast Time

DEARBORN, Mich.,-- Ford Credit announced today that it will offer its Red Carpet Option (RCO) Plan in Rhode Island in early April in response to outdated laws that hold leasing companies responsible for accidents involving their leasing customers. Rhode Island is one of only three states that have lessor vicarious liability laws that hold leasing companies liable in accidents. The laws in these three states have resulted in huge payouts by leasing companies to resolve litigation.

The stakes are high. Finance companies, banks and independent auto leasing companies face several billion dollars in potential payouts involving hundreds of open vicarious liability lawsuits. Such payouts could potentially add to the costs of purchasing, leasing and insuring vehicles and have the potential to eliminate leasing altogether.

Ford Credit Executive Vice President A.J. Wagner said, "Vicarious liability lawsuits will cause consumers to pay more for leasing and they will have fewer and more expensive financing options. It's critical to the future of the Rhode Island leasing industry that the legislature reform the vicarious liability law and bring it into line with the laws in most other states," Wagner added.

During the launch and transition phase of RCO, Ford's traditional leasing product, Red Carpet Lease, will continue to be available concurrently with the new financing product. If the legislature fails to reform the law soon, Ford Credit will discontinue leasing in Rhode Island.

Red Carpet Option is a Ford Credit retail plan under which retail installment contracts are written with a final balloon payment. RCO is designed to offer customers the ownership features of retail financing along with the major benefits and flexibility generally associated with Red Carpet Lease, as well as the option and benefit to turn the vehicle back to Ford Credit when the balloon is due with no residual responsibility. Thus, the customer is able to retain the benefits of leasing without Ford Credit holding title to the vehicle.

Bob Tasca, Jr., Ford dealer and President of the Rhode Island State Auto Dealers Association said, "Leasing is obviously a very popular choice since more than half of our customers in one dealership alone lease their cars and trucks. We're very concerned that they will lose the ability to choose this financing option. Any increase in vehicle costs could compromise their ability to afford new vehicles."

Ford Credit is a wholly owned subsidiary of Ford Motor Company and is the world's largest automotive finance company. Now in its 44th year, Ford Credit provides vehicle financing in 36 countries to more than 11 million customers and more than 12,500 automotive dealers. More information can be found at www.fordcredit.com and at Ford Credit's investor Web site, www.fordcredit.com/investorcenter/.

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Fitch Ratings: War Increases Credit Risk At U.S. Airports

Fitch Ratings-Chicago-: The onset of hostilities in the Persian Gulf significantly increases the financial risks facing U.S. airports according to Fitch Ratings. This opinion reflects the likelihood of further erosion in the already depressed air travel market, the potential for additional chapter 11 bankruptcy filings by U.S. airlines, and an increased probability of the liquidation of at least one major domestic air carrier, all of which would further restrict the revenue generating capacity of the nation's airports.

The past 18 months mark one of the most challenging periods U.S. airports have encountered in their history. The prolonged decline in passenger volume stemming from the weakened U.S. economy and the aftermath of the events of Sept. 11, 2001, has significantly affected non-aviation related revenue sources, particularly parking and car rental concessions. While airport managers continue to take action to reduce variable expenditures, the corresponding decline in revenues results in a greater share of fixed costs being passed to the airlines at a time when they can least afford them. This reflects the cost-recovery model of most airport use and lease agreements, which allow airports to assess the airlines for expenses not covered by non-aviation sources. Furthermore, increased security requirements have challenged airports to adapt to more stringent operating conditions imposed by regulatory agencies and to absorb additional operating and capital costs.

The Air Transport Association projects that passenger volume will decline by approximately 8% over the short-term due to the current conflict based on actual travel patterns during the initial stages of the 1991 Gulf War. In response, the major airlines have already announced service reductions on international routes and minor changes in domestic service. The airlines may need to consider additional adjustments in domestic service should the war extend for a protracted period of time and passenger demand wane to a greater extent than expected. This additional damper on travel volume only exacerbates the financial challenges facing airport managers, who now confront the prospect of additional budget reductions and further adjustments to their capital programs.

Fitch believes that the airport industry in general maintains its strong credit fundamentals including the essential role of air travel in the national economy, limited competition for passengers within local markets, flexible capital programs, and the cost-recovery provisions of most use and lease agreements that insulate airports from the short-term volatility of the airline industry. Due to these strengths, as well as the diversity in the operating nature of U.S. airports, Fitch anticipates that the average rating for the industry as a whole will remain near its current 'A' level and continues to view the default of a general airport bond as a remote possibility.

However, due to the current economic conditions, individual airports may experience deterioration in their operating and financial condition and, as a result, their credit ratings. 'Second- and third-tier connecting hubs appear to be at greatest risk in the current environment' says Peter Stettler, Director, Fitch Ratings. 'Their reliance on the transfer traffic from a particular airline makes them vulnerable to potential scheduling changes as airlines react to a rapidly shifting marketplace.' Connecting hubs with a favorable geographic location, a sizeable origination and destination passenger base, low operating costs and strong yields stand a greater likelihood of sustaining passenger levels in the current environment. Smaller origination and destination oriented airports may also experience service declines as airlines adjust schedules to reduce service on lower yielding routes and capture more lucrative markets.

A prolonged war may result in an even greater decline in passenger levels, raising the possibility of additional bankruptcies among U.S. airlines. 'The war-related reduction in demand is putting additional pressure on the non-bankrupt carriers--particularly American Airlines--to quickly reach agreements with labor unions as part of an effort to bring operating costs in line with a diminished revenue base. Without rapid progress toward labor cost restructuring, American is facing a near- term liquidity crisis and a probable Chapter 11 filing,' says William Warlick, Senior Director, Fitch Ratings. While most airlines continue to operate their regular schedules during the initial stages of chapter 11 proceedings, the financial risks to airports increase as the airline undertakes a reorganization that could involve considerable schedule and other operational changes.

Of particular concern to the airport industry is the increased probability of one or more of the major domestic carriers filing a chapter 7 liquidation under the U.S. Bankruptcy Code. UAL Corp., parent of United Airlines (United), raised the specter of such a possibility in a recent bankruptcy court filing as part of its continuing Chapter 11 proceedings. As United operates hubs in four of the five largest domestic markets in terms of population, and at four of the 15 largest airports in terms of originating passengers, the potential collapse of the nation's second largest carrier would cause severe disruption to the nation's air transportation system at a time when competing airlines are financially unable to fill such a void. However, should United liquidate, competing airlines would likely act to capture the most lucrative markets available, resulting in a restructuring of the hub-and-spoke system that would increase financial pressure not only at United's hub facilities, but at hub airports of surviving carriers as well.

Reflecting the poor operating environment for airports, Fitch has downgraded the ratings for two airports (San Francisco International to 'A+' from 'AA-' and Massachusetts Port Authority [Boston Logan International Airport] to 'AA-' from 'AA'), and changed its Rating Outlook to Negative from Stable for an additional 13 airports over the past 18 months. In addition, three airports (Pittsburgh International [Allegheny County Airport Authority, rated 'A-'], Charlotte-Douglas International rated 'A', and San Francisco International) remain on Rating Watch Negative. Fitch has upgraded two airports, Manchester, New Hampshire (to 'A' from 'A-') and Tampa International (to 'A+' from 'A'), due to their strong financial performance during this period associated with the significant presence of Southwest Airlines at these facilities. Fitch maintains ratings on 65 U.S. airports, representing in excess of $50 billion in outstanding debt.

Contact: (Airports) Peter Stettler 1-312-368-3176, Chicago; Dan Champeau 1-212-908-0829, New York; Jessica Soltz Rudd 1-415- 732-5616, San Francisco; James Gilliland 1-212-908-0575, New York. (Airlines) William Warlick 1-312-368-3141, Chicago.

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