Jetrader - Winter 2015 - (Page 16)

ISTAT Europe: A High-Flying Success Attendance soars as veterans and first-timers converge in Prague Y By Julie Ahlgren Year after year, aviation professionals from around the globe converge to discuss market trends, hear updates from manufacturers, catch up with old friends and make new ones at ISTAT Europe. With 1,200 in attendance, this year's event did not disappoint. ISTAT Europe was held 4-6 October at the Hilton Prague and featured a heavyhitting lineup of speakers, as well as several networking opportunities. The conference kicked off on Sunday with walking tours and the ISTAT NewGen Event held at the historic U Flek beer garden. This event is one of the newest additions to the schedule and allows the younger generation of professionals a special time to gather together and meet industry veterans. The receptions, one on Sunday night sponsored by Vedder Price and another on Monday hosted by Boeing, buzzed with excitement as attendees and guests filled the room and conversation flowed into the evening. And to cap off the networking experiences, ISTAT went out with flair at the gala event at Zofin Palace, a stunning architectural masterpiece on a private island in Prague. "We've added 700 new members this year," said ISTAT President Marc Allinson during his opening address. "Amazing response. We're going all around the world with our events." An on-site poll revealed that 27 percent of the audience was firsttime ISTAT Europe attendees, and 93 percent of the audience responded that they would attend another ISTAT Europe conference. Overall satisfaction of the event was high, with 94 percent responding that the overall conference experience was either "excellent" or "good." Allinson also thanked ISTAT Executive Director Ron Pietrzak for his years of dedicated service to ISTAT. "He lives and breathes ISTAT," Allinson said of Pietrzak, who will retire at the end of the year. Julie Wichlin was introduced as ISTAT's incoming executive director. The potential capacity glut and rising production rates were hot topics of debate throughout the conference. Audience response during the economists panel revealed that 37 percent of the audience believed that the capacity glut will be realized by 2018. During this highly attended panel, economists from IATA, Ascend and Oxford Economics shared their current outlook and forecasts for the industry. Peter Morris, chief economist, Ascend, agreed that there was some reason for concern related to twin-aisle aircraft but also expressed trust in the current production rates and forecasts. "Manufacturers are not in the business of shooting themselves in the foot. ... I just don't see a huge capacity glut coming down the pipeline in which the machinery is pumping out aircraft even though the demand isn't there. There's a lag that's involved in the order book, and manufacturers can calibrate accordingly," he said. Andrew Matters, senior economist, IATA, said he is expecting 2015 to be a year of record profits for the industry, with an IATA expectation of overall global industry profitability of $29.3 billion for 2015. He was careful to note that "It is this sort of performance that the industry needs to be generating on a more regular basis. This needs to become more the norm ASK THE AUDIENCE Below are results from audience surveys taken during the presentations at ISTAT Europe. The results provide an interesting look at the state of the industry and the opinions of the conference attendees regarding important industry topics. Will a significant rise in interest rates impact aircraft CMV regardless of age? Too early to tell 13% Maybe, it depends on what fuel is doing at the time 21% No 15% The impact of rising interest rates will be Yes 64% Neutral overall 22% A net positive for the leasing sector 31% A net negative for the leasing sector 34% 16 The official publication of the International Society of Transport Aircraft Trading When will interest rates start increasing to a level that will affect financing availability and airline behavior? 2019 or beyond 31% By the end of 2016 28% By the end of 2017 41%

Table of Contents for the Digital Edition of Jetrader - Winter 2015

A Message from the President
Q&A: John Grant, Senior Analyst, OAG
ISTAT Europe: A High-Flying Success
The ISTAT Quarterback
State of the Regions: Asia & Middle East
Old Guys Rule
ISTAT Foundation Sponsors Herb Kelleher Trophy
Trend Watching
Aviation History
Aircraft Appraisals
ISTAT Foundation
Advertiser Index

Jetrader - Winter 2015