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Feature: The black box that is Basel III
06 June 2011
Basel III will not shrink the availability of financing, but the new regulations will make it more expensive.
will be squeezed tightly when it comes to margins in the next
few years. The operating environment is becoming more difficult
as several analysts suggest high fuel prices are here to
insult to injury, the price increase of export credit under the
new Aviation Sector of Understanding will increase in 2012 just
in time for the European Union Emissions Trading Scheme to come
into effect. Airlines will need to count every
later, new lending practices introduced under Basel III
regulations will be enforced in 2013. This will not impact
airlines directly, but as banks pass on their increased
liquidity costs, loan pricing will inevitably
the combination of all these rules together is
what’s going to put pressure on the market," says
Aoife O’Sullivan, partner, Gates & Partners.
"The industry is being squeezed from all sides."
Aviation lenders have already...
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