Having taken time to reflect on Dublin conference week, we at Phoenix American have had time to reflect on our thoughts and takeaways from what was a very busy and productive week. It was an unseasonably warm week in Dublin which lead to great opportunities to get out and about to network and meet with industry friends and colleagues.
Airlines are still seeking capacity with the OEM delivery and GTF engine issues meaning the power is still with the lessors. This is on existing aircraft which are still extending at favourable rates and lease length and also new delivery aircraft with sale lease backs expected to be a popular tool for airlines in the coming year. With it being projected that it will still be several years before new deliveries get back on track, the power will likely remain with the lessors for the next few years. Rob Morris, Cirium, gave his keynote speech at the beginning of the conference and he noted that lessors can now focus on their individual strategies rather than collective struggles brought on by COVID-19 and the Russia/Ukraine conflict.
In relation to the aviation ABS market, the outlook is positive. Phoenix American’s, John McInerney, sat on the ABS panel where aviation ABS experts gave their views on 2025 and beyond. The outlook is optimistic for 2025 with the record issuance years of 2019 and 2021 possibly being challenged if market conditions align in a constructive manner. In the weeks since, this projection has already started to come to the fore with aviation ABS issuances from both Carlyle and, Castlelake early in Q1. Phoenix American is delighted to have been appointed as Managing Agent on both of the Carlyle and Castlelake deals cementing its status as the leading Managing Agent in the aviation ABS market.
John McInerney on the ABS Panel at Growth Frontiers Dublin
The aviation ABS market is bolstered by an increase in trading of aircraft on the secondary market. During the conference, it was described very much as a sellers’ market. This is due to an increased appetite amongst lessors and asset managers who now have more funds available to purchase aircraft. Due to the ongoing OEM delays, most activity is said to have taken place in the mid-life and end of life market. This is a trend that is expected to continue for 2025.
As per previous years, it was a great week to connect with industry friends, colleagues and clients. With 5000+ people in Dublin, it was a week not to be missed and has set the tone as optimistic for 2025 in the aviation industry.
Next you will find Phoenix American attending ISTAT Americas in Phoenix, Arizona. Please feel free to reach out should you wish to connect with Phoenix in Phoenix!
