Tuesday, September 20, 2011
An article from Reuters today suggests that the ongoing financial difficulties in Europe could pose problems for the aviation industry which relies heavily on French and German banks for the financing of aircraft purchases. See Tim Hepher, French Bank Retreat Raises Aircraft Finance Fears, Reuters, Sept. 20, 2011 (available here). According to the article, the market for second-hand aircraft is more likely to be affected than the market for new aircraft. Of course, one way to lower financing costs would be to eliminate the nationality rule and allow airlines freer access to global capital as discussed in The Emerging Lex Aviatica 42 Geo. J. Int'l L. 639 (2011) available here.