The heightened interest rate environment has increased the cost of debt for everyone but this has particularly hit hard those companies without the cushion of an investment grade rating. Banks are competing hard for those tier one names with young equipment to finance with those smaller lessors still without access to the asset backed securitisation market, which remains economically unattractive for aviation assets, considering the sale of aircraft assets stimulating the market for mergers and acquisitions.
Ahead of the publication of the completed Aviation Global Leaders Report 2024 in tandem with the Airline Economics Growth Frontiers conference in Dublin in January 2023, Airline Economics and KPMG are releasing a series of video interviews with industry experts that were conducted between October to the end of November 2023. In 30-plus interviews, these high-flying executives unpack their experiences from the past 12 months and cast their visionary gaze into the short- and long-term horizons of the industry's future.
In this interview, Greg Lee, Global Head of Transportation Banking, Goldman Sachs, speaks to Joe O’Mara, Head of Aviation Finance at KPMG Ireland, in New York in mid-October.
Goldman Sachs has a long history in aviation finance and works on all products from M&A and strategic advisory to large, structured aircraft financing for airlines and leasing companies. The bank has been involved in and structured many of the most significant and innovative aviation finance transactions.
In the interview, Greg shares his thoughts on the macroeconomic environment and its impact on the aviation industry, as well as insights into the direction of aviation finance heading into 2024.
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This discussion is the fourth to be released in the 2024 series of Aviation Leaders interviews that will be published between now and January 29, 2023 when the full report will be published at the opening of the Airline Economics Growth Frontiers Dublin 2024 conference week.