Copying and distributing are prohibited without permission of the publisher
BANKS CHECK IN
01 October 2005
Several aircraft finance banks are beginning to invest in airports, but there is much debate about how compatible the two assets are. By Alexandra Cain.
"I know people will be traveling by air over the next few
years, I just don't know in which aircraft or with which
carriers," says one asset finance banker. "So that's why I
prefer to back airports over aircraft."
He has a point. Global air travel will double by 2020,
according to Airports Council International. But airline
bankruptcies over the past few years have shown that airlines
are far from stable. Some bankers believe that financing
airports is a safer bet and the best way to enter the aviation
Several banks involved in aircraft finance are beginning to
invest in airports but bankers already in the airport market
are wary and believe that airports and aircraft cannot be
treated as similar assets. Newcomers believe that they know
airlines and the aviation industry and this is the crucial
element to success.
New banks and new markets Royal Bank of Canada is...
Already a subscriber?
To continue reading this article – simply login below
Not a subscriber yet?
Please choose one of the following options:
for free weekly newsletters
Request a Demo