A new study by corporate aviation financier Shearwater Aero Capital shows that three-quarters of the aircraft transaction experts they surveyed believe that demand for aircraft financing will increase over the next three years, as aircraft buyers look to use less of their cash and take advantage of competitive rates in the marketplace. In response to that potential growing demand for financing, 64 percent of those surveyed believe more funding will be made available to the sector over the next year.
Where that additional financing will come from is a matter of dispute. Forty percent expect more specialist lenders will enter the market, 28 percent believe the existing specialist lenders will increase their portfolios, while 23 percent believe traditional lenders will increase their exposure in the business aircraft arena.
Yet nearly one-third of those surveyed said they believe most, if not all, traditional lenders will withdraw from the market over the next three years to focus on mainstream lending in the face of growing specific regulatory and internal pressures.