The industry has been preparing for the perfect storm, predicted to arrive in 2013, for some time. Between the new Basel III regulations and the 2011 Aircraft Sector Understanding set to come into force the industry was, and still is, preparing for tough financing times ahead.
Throw in some French banks in turmoil into the melting pot and you have a pretty serious situation on your hands. Airlines have predominately relied on the French and German banks to provide commercial loans for aircraft purchases. Dollar liquidity at some of these institutions - the French banks in particular, though not exclusively - has forced the management to reconsider its involvement in aviation. Two banks have confirmed they will exit aviation, while others will scale back their services...
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