FLY Leasing is increasingly turning its focus to second-hand narrowbodies and widebody aircraft due to the restricted flow of capital to these markets.
"We see more attractive opportunities in the used and mid-life aircraft markets, where less capital competes and available financing is very limited," said Steve Zissis, director of FLY Leasing, speaking on a first quarter earnings call. "We continue to see opportunities on the sale leaseback front, although new aircraft sale leasebacks remain actively bid by aggressive capital sources."
On the widebody front, Zissis is starting to see "some attractive deals as less capital is willing to compete in this area and mainline credit start a heavy programme of new deliveries in 2013."
He says traditional aviation banks remain active, "albeit at a slower pace and with more conservative lending parameters." However, he notes the US capital markets "have finally awakened" as evidenced by a flurry of deals in the past six months.