Aviation

Hannover Leasing has launched 50 aviation funds so far, which makes the company one of the German market leaders in this segment. The total investment volume realised in the form of aviation funds equals approximately 2.7 billion euros. In addition to numerous funds specialising in the aircraft of the A320 family made by Airbus, Hannover Leasing also launched two closed-end aviation funds for aircraft of the A380 type. It gives private investors a chance to acquire an interest in the world's largest airliner.

The appeal of aircraft as tangible fixed assets is based primarily on three characteristics:           

  • longevity
  • stability of value
  • high fungibility

These are complemented by bright growth prospects: In the medium and long run, experts predict continued increases both in the number of passengers and in the air cargo volume – implying a corresponding demand for transport capacities.

The strategy of Hannover Leasing in the aviation fund segment seeks to realise the optimal combination of asset, investment structure, and partners. This is the perfect basis for achieving a sustainable positive performance for each aviation fund. It implies certain investment criteria for the aircraft and selection criteria concerning partners and investment structures.

Investment Criteria for Aviation Funds

To qualify as investment assets for Hannover Leasing's aviation funds, aircraft should have the following characteristics:           

  • a modern, standard type of aircraft, ensuring a high degree of fungibility
  • narrow-body passenger jets or large wide-body airliners
  • a plausible remarketing concept

Options for the investment structure of aviation funds include both finance leasing and operate leasing, involving long-term lease agreements. It is of the essence to design a product that delivers an adequate risk/reward profile to investors.

A key influencing factor for the economic success of an aviation fund is the selection of a partner. With this in mind, Hannover Leasing focuses on airlines that operate in fast-growing markets, have a superior credit worthiness, and have a demonstrably positive long-term track record, such as Singapore Airlines or Emirates.

Contact

HANNOVER LEASING GmbH & Co. KG

Wolfratshauser Strasse 49
D-82049 Pullach
Phone +49 (0) 89 21 104-0
Fax +49 (0) 89 21 104-210
E-Mail
© HANNOVER LEASING GmbH & Co. KG | Wolfratshauser Straße 49 | 82049 Pullach | Germany
Phone +49 (0) 89 21 104-0  | Fax +49 (0) 89 21 104-210 | E-Mail: kontakt@hannover-leasing.de