Roundtable on aircraft investment

Sunday, 21 February 2010

Qatar-based bankers and financiers heard from Boeing and Qatar First Investment Bank late last week that the health of the Middle East's air-travel industry, compared to other global regions, continues to drive good investment opportunities in aircraft financing.

“The Middle East was the only part of the world to see air passenger growth during the current downturn. This is a positive sign of industry health," said John Matthews, managing director for the Middle East and Africa at Boeing Capital Corporation.

Matthews added that the reduced competition in the financing marketplace because of current market conditions has created great opportunities for people with capital who are willing to invest.

Matthews, along with Mike de Graffenried, CEO of Qatar First Investment Bank, co-hosted the company’s first-ever Financier and Investors Qatar Roundtable in Doha. The event saw one of the largest turnouts to date for such a company-sponsored regional roundtable.

The event brought together senior corporate executives of leading financial institutions and investment companies in Qatar. It was part of Boeing’s investor outreach program aimed at energising and expanding markets for aircraft financing.

The agenda included presentations on the current aviation market environment, Boeing product strategy and an overview of aircraft financing both regionally and internationally.

Boeing noted that while aircraft as an asset class has held up better than most other investment alternatives, the current market disruption has created even better opportunities for savvy investors.

“Financiers willing to take advantage of the short-term market dislocations with a view toward creating a long-term aircraft portfolio should find themselves generously rewarded,” said Matthews.

Boeing’s latest market outlook reported that airline industry growth in the Middle East is expected to continue over the next 20 years. The 2009 outlook valued the Middle East market at US$300 billion over the next two decades, which translates into an expected need for 1710 commercial jets.