Aircraft are a durable, high value real asset, limited in supply, with flexibility and global reach in their deployment. When leased to airlines on operating leases, they provide consistent and stable cash-flow with a relatively low risk profile.
Aircraft Investment has a low correlation and very different risk profile to other asset classes including airlines, and differs in flexibility and structure to airport investment.
When combined into a portfolio, aircraft investment provides investors with a defensive alternative investment, that provide regular cash-flow, adds diversity to an investment portfolio and protection from downside risk in other investment markets.
Portfolio Diversification
Regular cash flow
Capital Preservation
Capital Gains Potential
Defensive alternative asset
Low Market Correlation
Global Investment Exposure
Secured Against Real Assets
Between 2020-2039:
- Airline traffic is forecast to grow by 3.6%pa. (1)
- Requires an estimated 39,490 new aircraft for a total market value of USD$6.3 trillion. (1)
- Airline traffic in Emerging Economies will grow from 30% to 85% by 2036. (2)
- Airline traffic growth has proven resilient over the long term, doubling every 15 years. (2)
- Secondary aircraft markets required US$43 billion in financing in 2019. (3)
- Airlines have returned to profitablity after COVID-19 (4)
1 (Airbus Global Market Forecast 2022)
2 (Airbus Global Market Forecast 2018)
3 (Boeing Capital Corporation – Current Aircraft Finance Market Outlook 2019)
4 (IATA Economics Quarterly Air Transport Chartbook Q4-2022)