Aircraft Financing

Aircraft are mainly bought by two groups of buyers:
1. Airlines for their own use
2. Operating lessors for onward leasing to airlines
Both groups of buyers require substantial external funding, both debt and equity, to accommodate these purchases.

Historically five key sources have funded the aviation industry:
1. bank debt (secured and unsecured)
2. export credit agency guaranteed debt (secured)
3. capital markets (secured and unsecured bonds; equity and debt solutions)
4. internal cash flow gener...