Euro Debt Crisis Limits Airline Finance Options
Access to European bank debt has dried up for airlines.
From l to r, Q Aviation Management CEO Greg May, US Airways vice president and treasurer Tom Weir, United Airlines senior v-p of finance and treasurer Gerry Laderman, WestJet vice president and treasurer Candice Li and Atlas Air vice president and treasurer Ed McGarvey commiserate on the state of the European bank debt market at last month’s ISTAT Americas Conference in Scottsdale, Arizona. (Photo: Gregory Polek)
From l to r, Q Aviation Management CEO Greg May, US Airways vice president and treasurer Tom Weir, United Airlines senior v-p of finance and treasurer Gerry Laderman, WestJet vice president and treasurer Candice Li and Atlas Air vice president and treasurer Ed McGarvey commiserate on the state of the European bank debt market at last month’s ISTAT Americas Conference in Scottsdale, Arizona. (Photo: Gregory Polek)

The International Monetary Fund’s April 18 warning that Europe’s banks could lose some $2.6 trillion over the next 18 months lent weight to concerns of a continuing aircraft finance drought recently voiced by airline treasurers and finance bosses. Calling the situation “disappointing” during last month’s ISTAT Americas conference in Arizona, United Airlines senior vice president of finance and treasurer Gerry Laderman lamented what he called the “overreaction” by some governments in Europe to compel their banks to carry more capital.