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And then there were 10

01 November 2005

The 2005 Airfinance Journal export credit survey shows how few banks are winning mandates, although competition among them remains fierce.

Tags: Export credit  |  Airlines  |  Airbus  |  airline  |  aircraft finance

If you had gathered the leading aviation banks together 10 years ago and told them that export credit would one day be priced at sub-libor, they would have laughed. The banks that featured in the 1995 Airfinance Journal survey – Mitsubishi Trust, Bank of Tokyo, Crédit Lyonnais, Citibank, Chemical Bank, Indosuez, NatWest, Paribas, Chase and CIBC – were reliant on export credit fees to subsidize commercial loans. (They would have laughed even louder if you had told them that a decade later their institution would have ceased to exist or merged with archrivals).

Export credit finance has become the most commoditized type of aircraft finance. The 70 different banks that participated in deals in 1995 have fallen to just 10 in 2005.

So is this bad for airlines and lessors? No.

Margins have never been lower and airlines can even get some institutions to price deals...

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