2018 Aviation Finance Market Forecast
Inform your investment strategy and make critical decisions with confidence
Ishka Vista: 2018 Aviation Finance Market Forecast delivers a trusted and independent assessment of the aviation finance landscape to help identify markets, products and assets that offer the greatest return on investment and the best potential for growth
As the market enters the next phase of the aviation cycle, I’m delighted to introduce Ishka Vista: 2018 Aviation Finance Market Forecast.
The requirement for new aircraft funding is expected to reach US$140+ billion in 2018. With record deliveries, an active secondary market and bank liquidity at an all time high, the aviation finance market appears buoyant. However, the sands are shifting below our feet.
Markets are evolving, leading to potential changes in demand for different types of aircraft; some market sectors are becoming riskier, both politically and socio-economically, and the competition to both acquire and place aircraft is driving aggressive transaction terms. When airlines also start showing signs of over extending, it becomes increasingly critical to be doing the right deals, with the right assets and airlines, at the right price.
Which markets are primed for growth and which are in decline? Where should you plan to focus your resources and make key strategic investments?
These 25 specially identified carriers are responsible for 50% of new aircraft deliveries by volume and value in 2018. Ishka's new Airline Credit Score determines which of these airlines are performing well and which ones are exposed to a bumpier ride. Click here for more information about Ishka Airline Credit Score
It’s a complex world of choices. Financiers can opt for lower-risk, lower-yield new-build aircraft types, or focus on older assets with their lower capital costs and higher margins, but with higher levels of risk in terms of demand, marketability and maintenance burden. In between the two, are a myriad of other investment options. Which sectors are facing change in 2018?
The proliferation of SLB (Sale & Leaseback), ABS and EETC transactions covering billions of dollars of investment each year indicates confidence in the market as a whole. However all are reliant on the quality and performance of the lessors, asset managers and airlines that are managing the aircraft. Which deal types are providing the better returns and where are the pressure points?