Thursday, February 4, 2010

Dublin AirFinance Conference – What did you think!!

Dublin AirFinance Conference – What did you think!!

This year seemed to me a marked improvement on last year’s conference in terms of the mood and the turn out.

The industry appears excited about the new lessors entering the market and the strong presence of the Chinese Financial Institutions who appear to be gaining momentum in foreign investments. It is rumoured that some of the Chinese backed lessors will establish operations in Europe over the coming year!! Some think that the lead in time for the new lessors to start making a positive effect in the market will be 6 -12 months.

From talking to a number of clients during the conference there appears to be a number of people who have secured new equity and ready to invest. Some will take the approach of 100% equity deals while others will be more reliant on debt to secure transactions.

Although debt is still not readily available I was pleased to hear of 2nd and 3rd tier lessors securing debt over the past 12 months.

One of the not so good news pointed out that the number of financial institutions in the aviation finance industry has significantly dropped (nothing we didn’t know). Players now need to work harder to secure debt and will have to pay more for it. How long will this last? Who knows?

Overall the shakeup of the industry over the last 12 months has left those still standing relieved that their business models have survived and ready to embrace the long awaited upturn. The mood from the platforms up for sale is that it will be a long process.

Please feel free to share your thoughts and findings with the rest of the group!

Keith Garry

I look forward to seeing some of you at the upcoming ISTAT Conference in Orlando

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