The past year has seen specific segments of the global aviation market continue a rapid expansion trend. The so-called ‘BRIC countries’ (Brazil, Russia, India and China) continue to demonstrate an appetite for investment in all aspects of the industry, and this phenomenon is fuelling an increase in both corporate and commercial air travel that is unmatched elsewhere with a clear shift apparent in terms of industry focus and strategy for these areas of growth.
Inevitably, the major suppliers are following the trend while contributing to its acceleration. With passenger statistics in some of these markets at levels which are now more than double European/North American equivalents, the airframe manufacturers at Boeing, Airbus, Bombardier and Embraer continue to capitalise on the demand for equipment and significant new entrants prepare to compete with alternative products. Sukhoi with its Superjet, Mitsubishi’s MRJ and COMAC’s C919 all intend to penetrate the growing regional markets with their particular operating characteristics, while Airbus and Boeing bring variants of their successful aircraft to the game with the A320 Neo and the B737 MAX.
Aircraft supply on this scale generates a huge thirst for capital, and the timing co-incides with a general dislocation in many areas of traditional funding by the global markets. The next 6-12 months will therefore be marked by a focus on the continued development and promotion of new financing products as well as the emergence of different funding institutions. This sets the scene for innovation and imaginative approaches to risk, as the industry copes with the scarcity of funds and develops ways to manage the increased costs of lending into the aviation sector.
Clyde & Co, “the world’s leading firm in the field of aviation law” for each of the last seven years (Who’s Who Legal), is uniquely placed to take advantage of this booming demand for quality legal, structuring and transaction advice from people who continue to provide the relevant answers and contribute to help driving the aviation industry forward. With over 100 specialist aviation lawyers including several ‘leading individuals’ nominated by the legal directories based across 27 offices worldwide, including in Rio de Janeiro, Moscow, New Delhi and Shanghai, its aviation and aerospace team ensures that the Firm is always involved in the next development in the aviation industry.
Clyde & Co regularly wins industry accolades for its innovation and deal complexity (including AirFinance Journal’s “Most Innovative Deal of the Year 2010” for the equity leveraged finance of A380 aircraft for Emirates) and this is set to continue as the next phase of the industry takes shape.