• +353-1-416-8900(GMT OFFICE HOURS)
  • 1-800-526-8630(US/CAN TOLL FREE)
  • 1-917-300-0470(EST OFFICE HOURS)
Basel III and Business Aviation Product Image

Basel III and Business Aviation

  • Published: August 2012
  • Region: Global
  • 28 Pages
  • Corporate Jet Investor

FEATURED COMPANIES

  • Bank of America
  • BNP Paribas
  • Credit Suisse
  • Goldman Sachs
  • Lloyds Banking Group
  • Nordea
  • MORE

Basel III will fundamentally change banking. This will include the financing of business jets and helicopters. As finance is a critical component of both new aircraft and pre-owned aircraft sales it will affect all of the corporate aviation industry.

The regulations will come into effect in 2013 and 2014. This 26 page research, 6000 word, research report explains how they will change the market.
Key points:

- Basel III will increase the cost of all debt including aircraft finance transactions;

- Banks have known about Basel III for more than three years and bank appetite for business jet and helicopter deals has not fallen;

- We do not expect any business jet or helicopter lenders to exit because of Basel III;

- Loans to weaker credits and operators will become significantly more expensive and harder to find;

- The need for data on aircraft loans makes it harder for banks to enter the market as pure asset lenders;

- Many banks are focusing on growing private banking relationships so these banks will become even more important lenders;

- Increased regulation of banks is an opportunity for funds like Guggenheim Business Aircraft READ MORE >

1.0 Executive summary

2.0 About Corporate Jet Investor

3.0 Basel for beginners
3.1 Capital
3.2 Leverage
3.3 Liquidity

4.0 When will Basel III happen?

5.0 Debt costs will rise
5.1 Tougher for weak credits and operators

6.0 How important is aircraft finance to banks?

7.0 The future under Basel III

New entrants

Appendix 1: How Basel I, Basel II and Basel III have treated aircraft finance
Appendix 2: Systematically important banks and business jet finance
Appendix 3: The world’s largest private banks and their expertise in private aviation
Appendix 4: Corporate Jet Investor June 2012 Business Jet Finance Review

4.1 Market Commentary

Footnotes and references

- EBACE
- The US Ex-Im Bank
- Citi Private Bank
- Deutsche Private Bank
- GE Corporate Aircraft Finance
- Guggenheim
- UBS
- Minsheng
- Bank of America
- Bank of China
- Bank of New York Mellon
- Banque Populaire CE
- Barclays
- BNP Paribas
- Citigroup
- Commerzbank
- Crédit Agricole
- Credit Suisse
- Deutsche Bank
- Dexia
- Goldman Sachs
- HSBC
- ING Bank
- JP Morgan Chase
- Lloyds Banking Group
- Mitsubishi UFJ FG
- Mizuho FG
- Morgan Stanley
- Nordea
- Royal Bank of Scotland
- Santander
- Société Générale
- Sumitomo Mitsui
- UBS
- Unicredit Group
- Wells Fargo

Note: Product cover images may vary from those shown

RELATED PRODUCTS

Our Clients

Our clients' logos