Copying and distributing are prohibited without permission of the publisher
Avoiding the crunch
01 December 2007
Airfinance Journal presents an overview of 2007 from the perspective of the banks, airlines and lessors. Despite the credit crunch, the growth of European airlines shows no signs of slowing down. Siqalane Taho and Janet Du Chenne report.
Read more:
2007
European airlines
Ryanair
EasyJet
IATA
credit crunch
It is tempting to draw comparisons. When the Japanese housing loan debt crisis hit in the early 1990s it sent shock waves through the international markets. Borrowers in the aviation sector suddenly found that the market they had come to rely on for cheap, lowly priced debt had suddenly turned and lenders were putting a squeeze on margins.
What many thought was a mere blip turned out to be a long upward shift in pricing and market fortunes that would only turn in 2003. The recent US sub-prime mortgage lending crisis is slowly beginning to make its impact on the market.
The International Air Transport Association has slashed nearly $2 billion, or 19%, off its 2008 profit estimates for the global airline sector.
It fears that the credit crunch will hit airline balance sheets and slow the industry's long-term recovery.
Though 2007 has shown signs of global economic uncertainty, two...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
