Business Aircraft Financing: Europe’s Changing Landscape

Are you prepared for the opportunities and challenges ahead for business aircraft financing in Europe? As some banks leave the market and non-bank lenders fill the gap, aircraft financiers, attorneys and others involved in aircraft transactions can be ready to respond to changing landscape by hearing from experts at the International Aircraft Transactions Seminar, held on 21 May 2017, prior to the start of the 2017 European Business Aviation Convention & Exhibition (EBACE2017).

“A large percentage of aircraft – anywhere from 50-75 percent – are financed, so aircraft financing is a critical part of the industry,” said Alasdair Whyte, co-founder of Corporate Jet Investor and moderator of the seminar’s Business Aircraft Financing: Opportunities and Challenges session. “The panelists for this session were chosen because they represent a wide range of financial experience and differing perspectives.”

Panelists include:
• Michael Davies, Cello Air Finance
• Chris Partridge, Deutsche Bank
• Robert Gates, Global Jet Capital
• Beat Kälin, UBS Switzerland AG
• Gerald Wiencke, UniCredit Leasing Group

For example, UBS and Deutsche Bank will share the perspectives of private banks, which typically focus on larger aircraft and established clients, while Global Jet Capital, Cello Air Finance and UniCredit Leasing Group focus on different segments of the market, including smaller aircraft.

Whyte explained this segmentation of the international aircraft finance industry is in part the result of the global economic crisis of 2008. Recent regulatory changes have made it more difficult for a bank to cater to all types of clients and manage rapidly changing aircraft residual values, so the emergence of new financiers like Cello Air and Global Jet Capital and renewed focus on operating leasing models are inevitable.

“The financiers on this panel are not typically competitors because they work with different niche markets,” said Whyte. “Their biggest competitor is cash. This is a tough market but there are lots of opportunities.”

“The International Business Aircraft Transactions Seminar is a one-day event that provides attendees with valuable insight into emerging trends like operating leases, the condition of the world-wide aircraft market and issues encountered during international aircraft transactions,” said Scott O’Brien, NBAA’s senior manager of finance and tax policy. “This year’s seminar will also discuss how Brexit will impact legal agreements, aircraft registration and even safety rules to help attendees prepare for upcoming changes.”

Registration, which also includes full registration to EBACE2017, is required for the seminar. Learn more about the International Business Aircraft Transactions Seminar.