The Equipment Leasing and Finance Foundation has released a report on business aviation financing that says financiers express cautious optimism over the next three years, while they worry about challenges that may derail recovery from the recession that began in 2007.

The study, Business Aircraft – Gaining Altitude: From Recession to Recovery, authored by David G. Mayer of Shackleford, Melton & McKinley, reveals and analyzes the collective thinking of business aircraft lenders, lessors and investors (financiers) about the future of their industry from 2013 to 2016. By identifying the most significant global challenges, opportunities, threats and trends that will affect business aviation during that period, industry leaders may better understand what the future holds for lessors, lenders and investors in this market segment.

The study examines what financiers have collectively experienced and learned, or may have failed to learn, since the start of the recession; analyzes the collective thinking of financiers, through its findings and discussion, on specific issues such as financing product mix in the future, corporate policymaking, accounting, economic, tax, regulatory, international and legal issues affecting business aviation generally and business aircraft financing transactions specifically; captures the collective insights of industry business leaders about the future of aircraft financing in 2013 through 2016; and proposes best practices in various aspects of financing transactions.

While the years 2003 to 2007 were considered a boom time in the business aviation industry, much has changed in business aircraft financing since the recession and 2008 financial crisis. Financiers witnessed or experienced firsthand the changes by value of smaller and large business aircraft. This phenomenon has continued since the recession and reverberates in the business aircraft transactions today.

A notable study finding was how the more expensive, new-build aircraft exceeding $25 million (top-half jets) remained relatively stable versus the smaller aircraft (generally under super-midsize) with a new-build value of less than $25 million, which dropped 56.4% (by value) between 2008 and 2011. The study discusses whether this change is here to stay and shows that the general future of the industry will be positive over the 2013 to 2016 time period.

For more information about the study click here.