Corporate Jet & Helicopter Finance Americas 2013

Alasdair Whyte
By Alasdair Whyte March 14, 2013 16:13

Corporate Jet & Helicopter Finance Americas 2013

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Corporate Jet Finance Americas 2013

“Bombardier strongly endorses these Corporate Jet Investor events and believes they are critical to any party seeking a pulse check of general aviation financing.”
Marc Meloche, Bombardier

Miami, Florida, 9-11 September 2013
Download the full three-day brochure for Corporate Jet & Helicopter Finance Americas 2013.

Miami has always been a good place to go if you want to cheer yourself up, and the mood at Corporate Jet & Helicopter Finance Americas attended by over 130 people, was definitely helped by the surroundings.

But even with this boost, it was a pretty realistic group.

The general consensus over the two days of the Jet Finance Conference was that we are still 18 months’ away from returning to the levels of demand that we saw before 1997. One delegate did ask the forecasting panel why we should trust them this time as they had said the every same thing 18 months ago, but the good news is that everyone in the industry is well-prepared for when demand does return.

Some people blamed lack of finance for the drop in orders (although it is hard to find real proof of this), but as they are keen to lend now, you definitely can’t blame them for holding back the upturn.

One of the subjects that kept coming up at our Miami conference this week was older aircraft. They were discussed in several sessions and if you consider that, according to AMSTAT, some 48% of the total fleet is more than 15 years old, an awful lot of aircraft fall into this category.

The general consensus from the aircraft values panel is that values for these aircraft will not bounce back. This is partly because, as participants on the US finance panel said – few banks like to lend against aircraft over 15 years old. Although there are a few lenders like Singlepoint which love older aircraft. It is working on financing an aircraft well over 30 years old at the moment).

The issue is even more interesting when you consider that 60% of all aircraft for sale were built before 1998. Many of these aircraft will never trade. Anthony Kiousis, founder of Asset Insight, showed how for some aircraft types the financial exposure to maintenance is greater than the price that sellers are asking. George Dom, from NFS Advisers also warned that many of these aircraft are idle and storing up problems – especially as the average time to sell an aircraft is now 509 days according to Jetnet.

Edward Kammerer, a partner at law firm Hinckley Allen, added: “When clients come to me saying they are interested in buying an older aircraft I always say OK, but remember that every asset has a last owner. Are you prepared to be the last owner of this aircraft?”



Alasdair Whyte
By Alasdair Whyte March 14, 2013 16:13

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