Jetrader -May/June 2013 - 10

ISTAT Americas 2013
Despite challenges in U.S. and abroad,

optimism abounds
By Julie Ahlgren, Jetrader editor
The record participation of more than 1,500
attendees at ISTAT Americas 2013 is a reﬂection of the sentiment heard throughout the
conference from many of the industry’s best
and brightest—the aviation market is growing, and advances in technology and increasing population will continue to shape the
market in years ahead.
Discussions spanned topics of aircraft
leasing, availability of capital markets,
latest engine and aircraft technology, and
countless other industry updates. Through it
all, the theme of growth repeatedly entered
the conversation as an important factor in
each market sector. A growing middle class
in many regions of the world, including
Africa, India and Asia, bodes well for continued strengthening of the market. But, it
also brings about challenges and questions.
Will widebodies gain favor for their large
passenger capacities or will the “right-sized”
narrowbodies offer stronger cost advantages?
Will low-cost carriers reign as this growing
middle class seeks the best price for their
travels? How will technology continue to
advance to meet the strong demand for
more fuel-efﬁcient aircraft?
Randy Tinseth, vice president marketing,
Boeing Commercial Airplanes, summed it up

The Boeing 747-8 Intercontinental model
on display at the ISTAT Americas 2013
conference.

at the end of his larger jets presentation
when he said, “Today’s market is challenging
and it is uncertain, but it continues to grow.”
During many of the discussions at ISTAT
Americas 2013, speakers reiterated a strong
belief in the cyclical nature of the industry
and conﬁdence that the market will eventually right itself. Laws and policies that
don’t make sense won’t last through the
long haul and the bumps along the road,
including consolidation, become part of the
journey toward cost efﬁciencies and a more
stable industry.
“The industry has always been cyclical.
There’s always a way to make money out
of aircraft. This is just part of doing business in aviation,” said aircraft remarketing

panelist Bill Cumberlidge, executive director,
KV Aviation.
Economic indicators were also a mixed
bag: “Some good, some bad, some bizarre,”
according to Adam Pilarski, Ph.D., senior vice
president, AVITAS. In his always entertaining
market update, Pilarski shared data showing
the massive growth in the Chinese market
over the past two decades. He forecasted
that growth there will remain above the
world average but will slow down to 8 to
10 percent.
From the insight at panel discussions to
the evening reception networking, attendees
had countless opportunities to increase their
knowledge and strengthen connections once
again at ISTAT Americas.

EXCERPTS FROM THE AIRLINE PANEL
Q: What do you see as the biggest challenges in 2013?
Vito Culmone, executive vice-president, ﬁnance, chief ﬁnancial ofﬁcer, WestJet
A: Concern of what the economic landscape looks like. Our focus is on how do we
not rest on our laurels and continue to look for productivity. We’re aging—even
though we’re only 17 years old.
Maria Cecilia Escallon, treasurer, AviancaTaca
A: Infrastructure—a lot of countries we operate out of have limited infrastructure.
Gerry Laderman, senior vice president, ﬁnance and treasurer, United Airlines
A: We probably did too much too quickly last year. Our focus is making sure we have
the best operations and best customer service we can have.
Thomas Weir, vice president and treasurer, US Airways
A: I think our primary concern is the economy and that it remains stable despite
early effect of balancing the budget; also working with the American team and
preparing the company to be merged.
What’s your recent experience with bank debt?
Eyup Isik, senior vice president–ﬁnance, Turkish Airlines
A: We have seen quite a lot of interest from Japanese banks.
Escallon
A: I think we’re seeing a comeback from the last couple of years. In our local markets,
we don’t have access because banks don’t understand it.
Culmone
A: Canadian banks haven’t had a large appetite to do bank ﬁnancing perhaps because of
the risk proﬁle. At the end of the day, it has not been a meaningful option for us.

10 The ofﬁcial publication of the International Society of Transport Aircraft Trading

http://www.ISTAT.org

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