Monday, 25 September 2023

They want 17,000 new aircraft

Man, who needs that? Really?

'It's crazy, boss.'

What is, Voice?

'Er ... what you're talking about.'

Yeah, and what am I talking about?

'Those people who want all those planes.'

What people?

'How the hell am I supposed to know?! I mean -'

All right, all right. Don't get upset.

Asia Pacific aviation sector to require over 17,000 new aircraft over next 20 years, according to experts.

You see?

'What experts?'

I don't know.

Hi Michael,

I hope you're doing well, please do let me know if you'd be interested in talking to Jared regarding the below.

No, I don't want to talk to anyone, but we're covering this PR email anyway. Aren't we, Voice?

'You bet!'

The exponential growth of intra-Asian trade, which now accounts for 58% of trade across the APAC region, is signalling the need to establish new infrastructure and supply chains means that transport and logistics as a focal point of intra-Asian investment, according to Jared Ailstock - Managing Partner of AIP Capital, a leading global aviation asset management and investment firm. According to Boeing's Commercial Market Outlook, passenger traffic growth the next 20 years of 5.3% per annum and accelerated retirement of older less fuel-efficient aircraft will see the Asia-Pacific region require over 17,000 new passenger and freighter aircraft - resulting in nearly $3.2 trillion for the aviation sector. Serving as testament to the economic opportunities for the sector, the IMF highlights growth in the Asia-Pacific region is projected to increase to 4.6%, compared to 0.8% in Europe or 2.2% in North America.

Reflecting the pivotal role the APAC region has to growing the aviation industry, Indian carrier IndiGo placed the largest order of aircraft ever recorded at the most recent Paris Air Show. Additionally, as of -

Yeah, okay. It's too early.

Uh.

Let's hear from the great man himself.

'Who?'

Jared.

'Is he great?'

Ha! I don't know. It's Monday morning. Don't give me grief.

Jared Ailstock, Managing Partner at AIP Capital, comments on why investors are increasingly turning to aviation:

Here we go!

"There is a lot of really different and attractive ways to get yield in the environment we are living in right now. I think a lot of people have looked at different parts of that market and said, 'Well, the risk/return in X, Y, Z investment is way better than aviation', and I think some of those participants wouldn't have said that a couple of years ago.

"Where we have seen success are folks that have either been coming into the space for the very first time, because they view the entry point as being a lot more attractive today because there isn't as much equity in the space, or guys who have been able to weather the storm and they view aviation as a core part of their strategy and they will continue to deploy equity throughout various cycles."

Oh, okay.

Thanks, Jared.

ENDS
ENDS
ENDS