Operating lessor Avolon believes aircraft values have turned the corner for the better and anticipates a rebound in 2014.
"We are just beginning to see the green shoots, so we believe aircraft values will start to come back in the second half of this year," says John Higgins, Avolon's chief financial officer in an interview with Flightglobal. "We anticipate a full recovery in 2014,"
He believes this movement is a "directional thing as against a massive shift upwards in value".
Higgins also highlights "increased competition" among lessors for aircraft deals following a two-year quiet period.
"The level of competition has undoubtedly increased in the past 12 months. If you think back to 2010 a lot of big names were significantly restricted, but now a lot have re-emerged," he says. "This means we have to be a lot more nimble and smarter to secure the right opportunities."
Higgins also notes that airlines that traditionally tapped the export credit agency market are now looking at sale and leaseback deals.
"This is not to say there has been a collapse in the export credit agency market that is being taken up by sale and leasebacks, no, not at all, but there is definitely more sale and leaseback interest."