Industry Excitement and Energy Fuels Successful ISTAT Americas 2014
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More than 1,639 attendees visited San Diego for the ISTAT Americas 2014 conference, the 31st annual event of the society, where industry experts in aircraft and engine manufacturing, leasing, finance, and appraisal, among other specialties, presented their outlook of the aviation industry.
"Year after year ISTAT has grown as the premier forum for connecting people looking for aircraft delivery funding with those willing to invest in them. From its start as an organization representing the lessors and traders of used commercial aircraft, ISTAT today has grown to over 3,500 members, and ISTAT Americas attendance topped more than 1,600 for another record year," said Jep Thornton, ISTAT president.
While some debate continued around the possibility of a production bubble, the overall mood was one of optimism regarding the future of the industry. According to opening speaker Adam Pilarski, senior vice president, AVITAS, Inc., contributing factors of low interest rates, stable fuel prices and profitable airlines have led to huge orders, huge deliveries and record backlogs.
Andy Shankland, senior vice president - leasing markets, Airbus, said that he is "reasonably optimistic" about 2014, noting that world GDP is up, along with passenger and freight traffic. Randy Tinseth, vice president of marketing, Boeing Commercial Airplanes, responded to Pilarski, "Adam, the market is good, and it is getting better. I think 'awesome' might be an overstatement."
The huge replacement cycle of used aircraft is another factor to consider when looking at the overall market, said Steven Udvar-Hazy, chairman and chief executive officer, Air Lease Corporation, during the Lessor's CEO Panel. He noted that while certain airlines may have ordered too many aircraft, others haven't ordered any or have under-ordered. Rather than generalizing that the market is in a bubble, Hazy said that perhaps some buyers were too optimistic.
According to the speakers on the Financial Markets Panel, this outlook is, at least partially, fueled by the availability of financing worldwide. Banks are "flush with cash" on a global basis, said Thomas Hollahan, managing director, Citi.
More than 1,200 attendees enjoyed the sunset and stunning views of San Diego at the Monday evening reception on the USS Midway. The ISTAT Foundation Golf Tournament was a success with 144 pros on the course. Other events included the ISTAT Foundation's 7th Annual Poker Tournament, which raised double its average in fundraising this year, the ISTAT Women's Networking Reception and Club ISTAT, featuring the always-entertaining ISTAT Band.
ISTAT capped off the event with a memorable President's Gala Dinner honoring Pete Seidlitz, the 2014 ISTAT Award winner. True to his humorous nature, Seidlitz captivated the crowd with his stories of airplane deals in sub-Saharan Africa, early ISTAT conferences and aircraft transactions with Donald Trump. Several of his colleagues and friends in the industry joined him at the podium to share a few laughs and memories.
Longtime colleague Dan Pietrzak first met Seidlitz while working at Northwest Airlines. He shared a few words about what makes Seidlitz stand out in his field:
"When you work for an airline or a lessor, you will meet many people who identify themselves as a 'broker.' We’ve all learned over time that since there are no real bars to entry on calling yourself a 'broker,' you often end up speaking or corresponding with someone who has no real standing in the industry and a facile understanding of our industry and the needs of aircraft owners and operators. So 'brokers' get a bit off a bad name, which is part of what makes Pete Seidlitz unique. Pete knows the commercial aviation industry and seemingly knows nearly everyone in it—at least on the aircraft trading side of things. With Pete, the quotation marks come off of 'broker,' and you are left with a trustworthy, hardworking, connected and thoughtful broker who services his clients’ needs. Taken together, Pete has integrity, and that’s not a given in this business. Beyond integrity, Pete also possesses a wicked sense of humor and a concern for the welfare of others that make him a pleasure to work with."
Look for additional coverage in the upcoming Summer issue of Jetrader magazine.
A selection of ISTAT Americas conference presentations are posted online for members. These are also available in the mobile app. Click here to download the presentations.
Click here to view a selection of photos from the event.
