Private equity makes leasing planes a hot commodity
Private-equity investors have become hooked on the air transport business. Some fear an airplane investment bubble is forming. Attracted by a global rise in passenger numbers, an explosion of budget airlines and healthy profits, private-equity funds have poured US$207b into financing commercial airliner deliveries since 2009, during which time almost $900b was spent on new jetliners. But with returns dampening, some investors worry the historically cyclical sector is overinflating. “The big question is, are we in a bubble and is it going to explode in the face of investors? My view is that there is a significant risk of a big bursting of the bubble,” said Michel Dembinski, head of aviation at Japanese financial group MUFG. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-07-05/general/private-equity-makes-leasing-planes-a-hot-commodity
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Private equity makes leasing planes a hot commodity
Private-equity investors have become hooked on the air transport business. Some fear an airplane investment bubble is forming. Attracted by a global rise in passenger numbers, an explosion of budget airlines and healthy profits, private-equity funds have poured US$207b into financing commercial airliner deliveries since 2009, during which time almost $900b was spent on new jetliners. But with returns dampening, some investors worry the historically cyclical sector is overinflating. “The big question is, are we in a bubble and is it going to explode in the face of investors? My view is that there is a significant risk of a big bursting of the bubble,” said Michel Dembinski, head of aviation at Japanese financial group MUFG. <br/>
