Financial Services

Why invest in aviation finance?

Aviation debt provides an opportunity for investors to access investment grade debt collateralized on long-lasting assets.

• Stable and long-term cash-flow profile
• Security – cash flows are secured on physical, transferable assets
• Regulatory protection (e.g. Cape Town Convention, authorities)
• High recoveries
• Currency, predominantly in US$ Diversification
• Demand Growth
  – Traffic growth 5.5% forecast average for next 20 years
  – Historically, traffic doubles every 15 years and growth strongly
    outpaces global GDP, ~x

• Stability / Risk mitigation
  – Aviation industry is homogeneous, global and heavily
     regulated => liquidity of assets and valuation stability
  – Aircraft are portable assets; reduces regional economic risk

• Values
  – Operating aircraft generate huge amounts of cash
  – Aircraft trading is a mature, sophisticated, US$ industry
  – Aircraft are expensive reducing the impact of transaction costs