Finance 1.qxp_Finance 15/12/2020 10:17 Page 1
FINANCE
How to Understand Aircraft Financing for 2021
The Covid-19 pandemic has had a huge effect on Business Aviation.
Chris Kjelgaard explores whether business aircraft financing trends in 2020 will persist in 2021, as well as how the financing scene might change…
espite the huge uncertainties persisting throughout 2020 because of the global Covid-19 pandemic—and in some ways because of them, some companies achieved record numbers of sales and financings of business aircraft during the year… Some aircraft buyers were prompted by the risk of exposure to Covid-19 aboard the airlines. Others were drawn by the generous bonus depreciation schedule available in the US. While many of these
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58 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
customers paid cash for their aircraft, enabling them to close their purchases quickly and easily, many more chose to finance their cash purchases, securing loans or leases, and taking advantage of what BizAv financiers and finance arrangers concur have been record low interest rates and margin spreads. “Margins are the cheapest and leanest they’ve ever been, really,” Andrew Robinson, founder of the London-based marine and aviation financial advisory firm Arc & Co told AvBuyer. www.AVBUYER.com
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