Aviation

Market overview

The previous 30 year upward trend in the aviation industry is, according to forecasts, only expected to continue to develop further. After a record year in 2014, aviation passenger and freight figures are expected to continue their growth trends. Caplantic continues to develop new innovative and sustainable investment formats in this industry. Through close cooperation with the NORD/LB, we are able to profit extensively from the vast aviation network and expertise of one of the biggest financiers in the aviation market.

Alternative Asset
Investment Chances

Despite the generally positive outlook of the aviation market, several previously active European aviation financiers are either reducing their exposure or retreating from the market. This is primarily due to the refocussing of business models and a concentration on local markets. This has resulted in an increasing gap in funding, which is progressively, albeit in Europe slowly, being filled by financial market investors. The placement of a Pfandbrief is one possibility for banks to refinance themselves in the capital markets. The Pfandbrief issued by the NORD/LB showed the strong demand it generated by investors.

Equity investments in aviation were previously often carried out by closed-end funds. After the turbulence in the German KG-market, this source of funding has taken a backseat to other forms of investment, even with several new innovative products coming onto the market in 2014.

At present, the biggest growth opportunities appear to be in the Middle East, Asia and South America. Legal restrictions and regulatory specialities result in additional challenges and risks for investment in these regions. Due to these specific challenges a strict management regime for sourcing the best investments, the development of a well-mapped finance structure and the ongoing monitoring of the investment are key to successful investments.

Together with NORD/LB, Caplantic is working on innovative financing solutions and new structures for aircraft transactions.

Track Record

Credit portfolio managed by Caplantic in 2015

Expert Opinion

In Germany alone, there are over 800.000 employees working directly in connection with the aviation industry. The current trajectory is expected to grow further. Being strategically aligned with the aviation industry has, due to societies increasing demand for mobility, proven to be a decisive competitive advantage. An investment in the aviation industry is therefore an investment in a growing market. The NORD/LB, as one of the leading aviation financiers in the world, works closely with Caplantic to allow for the creation of sound and market driven investment opportunities for our clients.

Oliver Faak
Global Head Ship and Aircraft Financing | Nord/LB

Key Figures

Actual traffic growth according to IATA
Freight traffic

in %

Source: IATA Air Freight Market Analysis December 2014

Actual traffic growth according to IATA
Passenger transport

in %

FTK: Freight-Tonne-Kilometer
AFTK: Available Freight Tonne Kilometer
FLF: Freight Load Factor
Source: IATA Air Passenger Market Analysis December 2014

With over 25 years of success in the market, a financing volume of approx. EUR 7 billion and a portfolio which consists of over 700 airplanes our Shareholder NORD/LB is one the leading commercial aircraft financers in the world. NORD / LB holds a stake of 45% in Caplantic. The following image film can give you a first impression of this unique network:

HDI Gerling Video

Our Expert for Aviation

David Kisser

david.kisser@caplantic.com

+49 (0) 40 368 812 564

Market snapshot
  • Asia-pacific region shows the highest growth dynamic
  • Airbus 330neo opens up new perspectives
  • Positive development of the aircraft leasing industry offers chances for joint-investments