Why Aviation?
Aviation a Global Growth Industry
Aviation is a growing industry driven primarily by economic growth in developed and emerging markets. As GDP continues to rise in emerging countries, their populations’ increased personal wealth coupled with non-commercial air travel needs will expand air traffic in the upcoming decades. In addition to the demand for aircraft from emerging countries, U.S. airlines will also need to replace thousands of aging aircraft in the next decade.
Banks have historically been critical capital sources for the aviation industry are now constrained by tighter capital requirements, limiting their ability to lend the large amounts of capital necessary to finance the purchase of aircraft. Additionally, Export Credit Agencies are also limited in their ability to provide capital to the industry,
Aviation by the Numbers
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Air traffic is projected to grow 4.8% each year over the 20 years…doubling the number of commercial aircraft in the world from 20,000 to 40,000¹
New aircraft orders are backlogged 7-8 years as a result of increased demand primarily, driven by increased GDP in emerging countries²
Growth of air traffic has exceeded GDP growth by approximately 1.9 times over the past 40 years¹
Aircraft manufacturer forecasts predict that there will be approximately $5.2 trillion spent on purchasing new planes in the next 2 decades³
1 “Private equity takes flight in the aviation sector,” World Finance, July 17, 2015.
2 “Aviation Finance: Fasten Your Seatbelts,” PwC, January 2013.
3 Boeing Capital Corporation, ‘Current Aircraft Finance Market Outlook 2015.