The most important criterion for an airplane fund is most likely the plane itself. Factors such as versatility, communality, efficiency and fungibility influence the value-retention capacity of an airplane. Value retention is essential for re-use of the plane through re-lease or sale at the end of the investment period.
In addition the value retention of the asset, the right mix of investment partners also plays an important role. The fund initiator needs not only experience in designing airplane funds – it should also have developed the right skills along with a broad network of industry contacts over many years of managing of these types of funds. In addition, the plane should be leased by the right airline. Not only must the airline be creditworthy, the airplane fund must fit into its long-term strategy as well. Only then can a fair deal be struck with regard to purchase price, lease rate and re-use options, all of which are essential requirements for airplane fund sustainability.
Our requirements at a glance
