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2008 - A year to forget
05 January 2009
The past 12 months were not the best of times, although aviation can largely claim its innocence in the financial catastrophe.
Read more:
aviation 2008
ILFC
Allco
Babcock & Brown
financial crisis
airline bankruptcies
aircraft values
"This is the first time the banks have run out of money before the airlines." It is impossible to remember who first said this to Airfinance Journal as so many have repeated it since September. Aviation was not the problem in 2008.
As the onset of global recession arrived, many aviation companies suffered as a result of their parents' failures, resulting both from foolish investments in other markets and from a breakdown in confidence in the financial markets.
ILFC's fate is in the hands of the US government as the Federal Reserve bails out ailing AIG. Babcock & Brown Aircraft Management's portfolio is in the market as a result of its parent company's inability to refinance debt because of the liquidity strain. Another aircraft leasing portfolio has been affected, as Allco Finance Group went into administration. All the portfolios are strong: good assets and good credit lessees. They should make...
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