AvBuyer Magazine January 2022

Page 38

Market Insights 3.qxp_MARKET INSIGHTS 21/12/2021 10:23 Page 1


What’s the Outlook for Aircraft Financing in 2022? AvBuyer’s Matt Harris asked David Hudak of 1st Source Bank’s Aircraft Finance Division for his insights into the market for financing private airplanes. How did the market develop during 2021, and what will the financing industry look like in 2022? Find out here… onsidered a leading source for aircraft financing, 1st Source Bank’s history stretches further back than aviation itself. Established 158 years ago in 1863, aircraft financing has been offered by 1st Source for more than 35 years. Today, the Aircraft Finance Division at 1st Source can accommodate more than 300 transactions annually, with the main focus currently being the turboprop and jet markets across the United States, Mexico and Brazil. Nevertheless, the bank will actively finance turbine helicopters, too. “The total value of our aircraft financing portfolio is in the mid-nine-figures range, via traditional loan terms,” David Hudak tells AvBuyer as he sits down to discuss the market. Mr. Hudak graduated from Indiana University with a degree in accounting, and began his career financing construction equipment in 1990 before accepting an opportunity to work at 1st Source Bank as a Senior Credit Underwriter in 1995. The position was within the Specialty Finance Group of the bank, focusing on


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aircraft and other verticals. “My career included several promotions through the credit group that always had me closely tied to underwriting aircraft transactions,” he explains. In early 2020, upon the retirement of a long-time colleague and friend, Hudak was presented with the opportunity to lead the Aircraft Finance Group. “We have a seasoned team of professionals consisting of Relationship Sales Officers, Credit Underwriters, and Loan Operations, focused solely on financing an aircraft purchase,” he says. Indeed, with offices across the US, most of 1st Source’s aircraft finance sales professionals are pilots. “We help our clients realize their dreams through a service model of distinctive convenience, straight talk, and sound advice that always keeps their best longterm interests in mind,” he explains. Having outlined both his and his Group’s expertise in the industry, Hudak shared insights and outlooks on the aircraft finance market as a feverish year in the Business Aviation industry came to a close…