Investments in aviation
Investments in aviation

Investments in aviation



Recent evidence of economic indicators for the quarter 1 2014 years- the US economy lowered its result to 2.9%, which is the largest drop since the beginning of the year 2009. This serves as a serious warning that the actual growth of the world market is very fragile.

At the same time, many investors today are looking for all kinds of options for alternative investments to diversify their portfolios of investment capital with a uniform distribution of risks. However, in their quest to find new projects, many investors ignore the asset that many of them used quite frequency planes.

Unlike real estate or other infrastructure, aircraft as an asset generate more stable and predictable cash flows based on monthly rental payments. In addition, proper technical supervision and maintenance of modern aircraft can maintain their economic efficiency for 25 years of operation. At the end of its useful life, the aircraft can be disassembled into parts and components, which can then be sold on the secondary market.

Investors prefer to minimize their highly risky assets in advance to insure themselves against possible hidden risks.

Despite numerous global economic problems associated with the leading aircraft manufacturers, experts in their forecasts are convinced annual growth of air transport and the demand for new planes. Company Boeing and Airbus are sure in the annual growth of 5% in air traffic over the next two decades. In an effort to support the growth in demand for air transport, the company is actively placed orders for airliners. Only China, plans to order aircraft in the amount of 600 bln. Dollars to 2030 years.

But most of the companies involved in transportation, have profit 1-5% on the results of the year and are forced to seek sources of available funds. In this case, investors have an opportunity, the investment of free cash assets in the airline to obtain a stable payments. Finance and leasing companies own more than 40% of global commercial air fleet.

After the conclusion of the lease or leases, the lessor must constantly monitor the technical condition of the aircraft. Poor maintenance and improper conduct maintenance work can lead to an increase in aircraft accidents, and lead to multi-million dollar losses.

Investors for their investments may choose different strategies with different levels of risk. In the implementation of the financing of the transaction is necessary to provide for risks and carefully select a partner.

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