Any signs of green shoots were short-lived as the aviation finance market is deteriorating rather than stabilising, according to a London-based financier.
"We haven't seen the bottom of market yet," he says. "There are some very prestigious airlines cancelling and deferring orders. This is unprecedented and people shouldn't be so flippant about what is really happening."
He adds: "There is only so much slot swapping that can happen. A lot more distressed aircraft are about to come to market that will need financing."
The financier notes that airlines are still using their balance sheets to support the cost of operations "but that is quickly changing."
He believes higher fuel prices and more bank write-offs will put more pressure on the airlines in 2010.
The financier says more private equity players are needed as these financiers won't be "driven by bureaucratic credit committee or by balance sheets returns."
He says private equity could cough up "5-10%" of the aviation financing needs during the next couple of years.