Guggenheim Partners, Business Aircraft Investments - Ukintpress ...
Guggenheim Partners, Business Aircraft Investments - Ukintpress ... Guggenheim Partners, Business Aircraft Investments - Ukintpress ...
Aircraft Market Attributes Cyclical Inefficient Regulated • Business aircraft market historically has been closely tied to the GDPs of the world’s economies, corporate profits, wealth trends and stock markets • Historically predictable recovery • Resale market transactions and inventory levels are leading indicators for a broader market recovery • Market recoveries are typically led by newer larger aircraft • Deliveries are trending more outside the traditional recovery markets of the US and Europe to emerging markets • There is no dominant clearing house in the market • Largest dealers transact 2-3% of all deals in market • No wholesale market (buy/resell) operating currently • Brokerages have become the norm where listing the account is key success factor • Existence of subjectivity on aircraft values • Creation of arbitrage for undervalued “in demand” aircraft • OEM pricing for new aircraft can vary by region or country • Transfer of ownership is highly regulated • Documentation of aircraft history is stringent • Aircraft operation and maintenance is highly regulated • International Registry (Cape Town Convention) provides additional security / central registration control for financiers
Guggenheim Partners, Business Aircraft Investments The Business Aircraft Valuation Cycle Chris Miller Managing Director Guggenheim Partners, Business Aircraft Investments
- Page 1 and 2: Guggenheim Partners, Business Aircr
- Page 3 and 4: Business Aircraft Value Cycle - Glo
- Page 5 and 6: Asset Review and Valuation 1 Market
- Page 7 and 8: Business Aircraft Demand - Tiered R
- Page 9 and 10: Business Aircraft Value Cycle - OEM
- Page 11: International Growth Global busines
<strong>Aircraft</strong> Market Attributes<br />
Cyclical Inefficient Regulated<br />
• <strong>Business</strong> aircraft market<br />
historically has been closely tied<br />
to the GDPs of the world’s<br />
economies, corporate profits,<br />
wealth trends and stock markets<br />
• Historically predictable recovery<br />
• Resale market transactions and<br />
inventory levels are leading<br />
indicators for a broader market<br />
recovery<br />
• Market recoveries are typically<br />
led by newer larger aircraft<br />
• Deliveries are trending more<br />
outside the traditional recovery<br />
markets of the US and Europe to<br />
emerging markets<br />
• There is no dominant clearing<br />
house in the market<br />
• Largest dealers transact 2-3% of<br />
all deals in market<br />
• No wholesale market (buy/resell)<br />
operating currently<br />
• Brokerages have become the<br />
norm where listing the account is<br />
key success factor<br />
• Existence of subjectivity on<br />
aircraft values<br />
• Creation of arbitrage for undervalued<br />
“in demand” aircraft<br />
• OEM pricing for new aircraft can<br />
vary by region or country<br />
• Transfer of ownership is highly<br />
regulated<br />
• Documentation of aircraft history<br />
is stringent<br />
• <strong>Aircraft</strong> operation and<br />
maintenance is highly regulated<br />
• International Registry (Cape Town<br />
Convention) provides additional<br />
security / central registration<br />
control for financiers
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