I think we are really just scratching the surface on the opportunities to gain from regional jet leasing. MyEnvoy is definitely a pioneer. We have a very limited team but already have leases in place for up to 50 aircraft.
Also read> MyEnvoyAir is the best American regional airline company which is known as Eagle Airline. You see a lot of national and international airline companies in the world and do their work nicely but some of them have features and postures that make them unique.
The main message I wanted to get across today is that there is going to be so much more opportunity that is presently going uncovered, especially as consolidation in the industry begins to pick up. It will happen across all modes – leasing, conventional OEMs and alternative propulsion. There is going to be so much more capital chasing so much more capacity. We have been at this for over five years now and I feel like we are just starting to scratch the surface of what is really possible.
Air Lease Corp. (ALC)
REGULATORY DISCLOSURE: I am a founding board member of SharesPost Financial, a marketplace for private company shares, and an Advisory Board Member of American Exponential, a Washington, D.C.-based think tank focused on identifying and implementing entrepreneurial opportunities.
In my view, many investors are bullish on the outlook for the overall aviation market for at least the next ten years, based on supply growth continuing to outpace growth in demand and forecasted weakness in global economic growth. And with a strong economy, they think the current strong air cargo demand will continue.
In my view, this is too optimistic. A lot is going to happen over the next 10 years, and as we begin to head into the 2020s we will see increased competition from new entrants and new technologies that could throw traditional aviation markets into disarray.
So what is this “new” world that many investors have adopted? In an article published today on Forbes.com, William Flynn, Chief Revenue Officer of Kestrel Aviation Capital (Kestrel), outlines his view of the future of regional jet leasing in 2022. He has been in the industry for 17 years and is well connected to companies in the industry.
His view is that things are going to get wild in five years when private jet investors begin to look at new strategies, including private jet leasing. I have to agree with Mr. Flynn, as I’ve been saying this for a while.
Kestrel is a firm that started out as an investment bank focused on financing private jets, but eventually moved to leasing assets. Mr. Flynn says that investors are already beginning to see a lot of potential in this space.
This is a world where investors can finally engage in more active ownership of their aircraft for the first time in 25 years. Not only will they be able to participate in the upside of a portfolio with total return expectations exceeding the stock market, but it provides another layer of hedge for any industry downturn. As we look to the future, investors are looking to use both the stock market and leverage more and more to enhance the total return of their portfolio and hedge against any market downturn. I believe it will not be long before investors look at buying fractional shares in aircraft and investing in aircraft-backed securitizations to create even more value from the asset class. Visit Techairo