When the dimensions of the COVID-19 pandemic emerged in mid-March 2020, airline bookings shortly fell off a cliff and the rest of the aviation industry held its breath. And sure enough, the phones stopped ringing in the finance offices where aircraft loans originate. Prospects seemed even grimmer than during the 2008 deep recession.
But within a month, in a surprise development no one expected, the market for loans on used aircraft came roaring back and for some banks and lenders, now appears to be stronger than ever. “The activity level is unbelievable. I can’t tell you how busy we are. It’s amazing,” says Bob Howe of Dorr Aviation Credit, a veteran finance brokerage house with more than 50 years in the field. If would-be buyers are taking a wait-and-see attitude, it’s not evident to the folks making aircraft loans.