VIDEO: The great divide in aircraft orders and financing

Mary Arizona.jpgOkay, so it has taken me a little longer to post this vlog than I expected, but the message to come out of ISTAT last month in Scottsdale is still all too relevant. There is a big – nay huge – divide between aircraft on order and aircraft that are currently financed (or have any hope of near-term financing).

Thus we’re seeing delivery delays, order cancellations and – shock – white tails (Bombardier spoke of nearly 20 bizjet white tails during its latest earnings conference call. Is this a sign of things to come in the commercial sector?)

What does this mean for IFE and interiors? Right now, the industry appears to be cooking with gas. That’s because carriers that placed their high-end orders – and worked out financing arrangements a while back (sometimes with the airframer) - are now taking deliveries.

We’re seeing some of the best of the best in IFE and interiors coming to market (Emirates, Qantas, and next up, Lufthansa’s A380s; you know what I’m talking about).

But when should we start having serious concerns about commercial white tails? Here’s hoping the divide isn’t as wide as predicted by these nice folks. Mind the gap…!!!

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