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THE ODD COUPLE
01 April 2007
The tendency towards airline credit has met its match in the form of asset risk. Rossa McPhillips reports.
It does not take long to name some well-known double acts: Laurel and Hardy, Bush and Blair, salt and pepper, asset risk and airline credit. But only one of those, the final combination, is being hotly debated within the aviation industry.
Tony Simpson, managing director of Boeing Capital's European aircraft financial services business, believes asset risk will nudge aside airline credit to become the predominant factor in aircraft finance.
"What we're seeing nowadays is that when banks are doing deals, they are thinking that if this deal goes wrong we're going to be able to live with this transaction because we understand the value of the asset and we will be able to redeploy it very successfully some place else," he explains.
Those banks that are entrenched in the industry in the long term, which remain stoic through the downturns and proactive in the boom time, are increasingly focusing on asset risk, according...
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