Finance.qxp_Finance 21/12/2021 09:43 Page 1
FINANCE
Aircraft Finance Lenders: Specialist or Generalist? The aircraft finance sector features a range of providers, some focused solely on aviation and others working across different industries. Should you opt for a specialist or a generalist aircraft finance provider? The answer can be complex, as Gerrard Cowan discovers… or some, a specialist choice of aircraft finance provider holds clear advantages. Bob Mann, President of R.W. Mann & Company, an aviation consultancy, believes specialists will in most cases “have a much better idea of collateral value, trends in loan-to-value ratios, and offer more customized financing options – especially with Business and General Aviation aircraft”. However, he notes that such lenders could work for either specialist aviation providers or be part of aviation-focused groups within more generalist providers. One benefit of working with an industry-focused provider is that such companies “want to promote General Aviation”, Adam Meredith, President of AOPA Finance, says. His company provides a range of solutions tailored to individual borrowers, in both Business and General Aviation. The company provides options, depending on whether a buyer is focused on rate, payment, chartering an aircraft, or a combination of different factors. The most common request is finance for buying an aircraft outright, though there has recently been an increase in operators looking for avionics upgrades and engine overhauls, Meredith says. AOPA works as a broker and has relationships with many lenders. By providing operators with the right package for them, this also helps the industry at
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58 Vol 26 Issue 1 2022 AVBUYER MAGAZINE
large. “By having more options available to them, more people are likely to buy aircraft,” Meredith notes. “We have the experience to help get buyers exactly what they want.” Global Jet Capital is a specialist provider of lending and leasing solutions for business aircraft. Andrew Farrant, the company’s Chief Marketing Officer, says it dedicates its focus to Business Aviation and is led by experts in the area. “We understand the ins and outs of the market, the asset class, residual values, and what it takes to structure and execute a successful transaction in what can often be a complicated landscape,” Farrant says. “This experience allows us to transact quickly and efficiently for our clients.” Various providers aim to combine the advantages of specialist and general options. For example, PNC Aviation Finance is part of PNC Bank, which offers a range of finance solutions across various industries. However, the aircraft arm comprises nearly 40 aviation industry professionals who are focused exclusively on aircraft transactions, from marketing to underwriting to sales and servicing. “We offer our clients the best of both worlds – a team with decades of experience in this industry and the backing of one of the largest financial institutions in the [United States],” said Ramy Sidhon, Head of PNC Aviation Finance. Keith Hayes, Senior Vice President and National www.AVBUYER.com
