Calm in the aviation finance market reflects "hesitant and nervous aviation investors" rather than bankers away on European holidays, says an aerospace financier.
"August is typically a time of doldrums for many, but this year the reasons are different," says the source. "What we are seeing is the market afraid to lend long-term, as there are many important events on the horizon, such as the US elections, Greece and questions about Iran and Israel, that are making financiers hesitate."
Also making lenders jittery is the refusal by India's Airport Authority to allow lessors to take back their aircraft on lease to Kingfisher Airlines.
"At a time when capital is precious and credits are closely reviewed, this situation does not go down well," he says. "It is also doesn't say much about India's support for the Capetown Convention that is due to protect against such acts."
The Capetown Convention, which India adopted in 2008, provides an international legal and institutional framework for aircraft financing and leasing. It is also intended to help airlines diversify their aircraft financing options.