Aviation News Online

Korean investor aviation interest buoyed by expected returns

The investment market in Korea is enthusiastic and growing – with aviation assets generating the most interest, which is demonstrated clearly by the 600+ delegates attending the inaugural Airline Economics conference, which begins in Seoul today.

To date, most aviation deals closed in Korea have focused on young aircraft on lease to top tier airline credits but this is changing. More investors are entering the space chasing higher yields, which are starting to look at older assets and portfolio sales. As this increases, investors need to focus on due diligence of assets and credits. The Korean investor-heavy investor audience heard an in-depth presentation from Vedder Price shareholder Geoffrey Kass covering all due diligence concerns, issues with purchase and sale agreement as well as touching on thorny issues such as maintenance reserves.

The rest of today’s programme dives into the legal and technical issues all investors into aviation assets need to consider. Tomorrow delegates will hear from a variety of speakers and panel discussions on the potential returns from aviation deals.

Date: February 20, 2017

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