Indian commerce minister Anand Sharma announced the raising of the country’s cap on foreign direct investment (FDI) in 13 important industrial sectors, including defense. But while the defense industry was expecting the cap to be raised to 49 percent from the present 26 percent, Sharma said that defense proposals for more than 26 percent will be permitted only for state-of-the art technology.
The Equipment Leasing & Financing Foundation has released the results of a survey of financing experts, “to reveal and analyze the collective thinking of business aircraft lenders, lessors and investors (financiers) about the future of their industry in 2013 through 2016.” In general, “Financiers think the worst effects of the recession and financial crisis in 2008 are behind them and that business is picking up.” The report concludes, “business aircraft will gain altitude in 2013 through 2016 and ultimately ascend to an active (if not robust) transactions market during th
As vendors await the announcement of belated contracts, India continues to grapple with its ever-changing defense procurement policy, with the latest–DPP 2013–announced and effective from June 1. The focus of DPP 2013 is on buying Indian defense products, even though these can fill only a fraction of the country’s requirements.
British Defence Minister Philip Hammond published the details of his plan to appoint a commercial company to manage the UK’s defense procurement. The controversial proposal has been mooted for more than a year and is Hammond’s response to what is widely perceived to be a long history of under-performance by the 15,000-strong Defence Equipment and Support (DE&S) organization.
The executive charter sector appears not to be making a promising start in the Northern Hemisphere summer season, according to the latest demand projections from online charter portal Avinode. As of June 5, the company’s forward-looking demand index showed anticipated aircraft bookings for the next 30 days generally down compared with the May 5 index.
The Aircraft Owners and Pilots Association (AOPA) launched a new brokerage venture yesterday aimed at matching its members who require aircraft financing with lenders. It will also help facilitate member loans for avionics updates, either through straight loans using the aircraft as collateral when it is fully owned, or through refinancing of the aircraft while it is still being paid off.
Offshore-energy and medevac operator PHI reported substantially higher earnings for the first quarter, posting a net revenue gain of $40.9 million (to $178.9 million) compared with the same quarter last year. The company credits the gain to more deepwater oil exploration support work and an uptick in its air medical segment. Net earnings quadrupled from the same period in 2012, increasing to $8.8 million from $2.2 million.
There has hardly been a better time to be a buyer of business aircraft insurance, according to aviation insurance brokers, underwriters and industry consultants that AIN canvassed for this article. All signs definitely point to a buyer’s market, with some customers almost able to name their own price. While rates are already low, they could descend even further over the next 12 months if the industry stays on its current course.
Airlines are benefitting from growing capital market support for new aircraft financing, with this source of funding expected to account for as much as 15 percent of all transactions this year, according to Boeing Capital. A few years ago, capital markets accounted for barely 2 to 3 percent of aircraft financing.
NBAA president and CEO Ed Bolen gave a big thumbs down yesterday to legislation sponsored by Sen. Kirsten Gillibrand (D-N.Y.) “that would single out one industry, general aviation, for a change in its established depreciation schedule.” Gillibrand’s proposal would extend the current five-year tax-depreciation schedule for general aviation aircraft to seven years.