Jetrader - November/December 2010 - 10

Resource for Opportunity:
Answers for Success

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ISTAT 17th European Conference Munich, Germany
ISTAT closed out another successful conference in 2010 with record-breaking numbers and participation. A total of more than 575 attendees participated in the ISTAT European Conference in Munich, Germany, 10-12 October. The sold-out conference and the huge increase in numbers is testament to the growing conﬁdence in the aviation industry. “2010 appears to be a transition year where a high percentage of airlines have migrated from operating losses in 2008 and 2009 to in most cases a modest but in some cases impressive proﬁts,” said keynote speaker Steven Udvar-Hazy, CEO of Air Lease Corp., during his presentation on Monday morning. Hazy presented the industry outlook and outlined the challenges that must be addressed quickly and effectively, such as over regulation and taxation, imbalances in the framework of the export credit, prospective volatility in fuel prices, rising interest rates, and concerns over when the technology advances will provide for the next generation of airplanes. “Complacency is not a good characteristic as we approach 2011,” Hazy said. His presentation kicked off two days of thought-provoking sessions and panels from those in the forefront of innovation and progress in the industry. The powerhouse panel of airplane manufacturers combined Andy Shankland, vice president of marketing, Airbus; Randy Tinseth, vice president of marketing communication, Boeing; Steven Aliment, vice president of European sales, Bombardier; Mark Dunnachie, managing director for ECC Leasing Company Limited, Embraer; Paolo Revelli-Beaumont, senior vice president for marketing and sales, Superjet International; Yugo Fukuhara, senior manager, Mitsubishi; and Mario Formica, vice president of marketing, ATR. Tinseth discussed Boeing’s thoughts behind developing next generation aircraft, whether through a new, more fuel-efﬁcient engine or a replacement airplane for the 737. “We’ve been working with the engine manufacturers, and we have determined that it is technically feasible and possible to re-engine today’s aircraft,” said Tinseth. “So the question is, does this new airplane with a new engine bring value to our customers?” The question of re-engining was brought up in nearly every presentation, and Airbus also conﬁrmed that they are looking at the new engine option for the A320, but the decision has not yet been made. Also hotly debated was the topic of Ex-Im Bank and export credit agencies and their role in the ﬁnancial aspect of the industry. Most agreed that these options should be reserved as a tool for lessors and airlines and there should be diversiﬁcation across funding sources in order to create a stable ﬁnancial environment. The ability for airlines to ﬁnd ﬁnancing through these options has created another concern that the life of an airplane is being shortened and in turn causing unnecessary ﬂuctuations in aircraft values. Many other crucial industry topics were covered over the two days of conference, and presentations can be found at www.ISTAT.org. As one of the premier industry events, attendees were treated to a ﬁrst-class event at the Westin Grand Arabellapark in Munich. From the opening reception to the German beer tasting event and the closing gala dinner, the event was a special way to connect with old friends and make new ones. We’re looking forward to setting a new record next year at the ISTAT 18th European Conference in Barcelona, Spain, 18-20 September 2011. 10 The ofﬁcial publication of the International Society of Transport Aircraft Trading

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Jetrader - November/December 2010

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