As the global economy churns, the aviation finance market holds its breath. A recent report from UK-based aviation analysis firm IBA Group predicts that financing will become even more difficult to secure as the year progresses, as lenders chart a cautious course through the turmoil. “‘Keeping their powder dry’ is how a lot of them describe it, and I think the practical interpretation of that is that they’re financing existing business, and previous letters of intent that they have issued to clients, but they are perhaps not actively looking for new business,” said Mark Wooler, IBA’s head of consultancy.
“I think what’s happened is a lot of the traditional banks had quite active origination teams that were sort of knocking on the doors of the manufacturers, knocking on the doors of existing charter operators, asking ‘Can we be of assistance?” and what’s happened over the last six months is that they’ve stopped being proactive.”
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