Interest rates remain very attractive for aircraft buyers. That, coupled with great values, makes for a uniquely buyer-friendly market that hasn’t been seen in recent history and may not be duplicated for years to come. It’s a wonderful time to purchase!
In the past 90 days, we have seen relatively level underlying rates; a slow, softening in rates through December and January was met with a slight uptick in February. However, rates remain lower today than they were in early 2011, and have been hovering at this low-point for about 7 months, as illustrated with the chart below (Source: Treasury.gov – using the 3-year Treasury rate in this example from January 2011 through February 2012).
While the FED has committed to keeping rates low through the next 12-18 months, we are likely to see increased pressures on the underlying rate market if fuel prices or inflation tick-up more aggressively. The general sense is that we might start to see some increases as we move further into 2012, but the increases are expected to be minimal at most, likely keeping rates at or below averages seen over the past 24 months.
AirFleet offers a selection of fixed and variable rates to match a client’s particular rate-risk desire. Please call us at (800) 390-4324 to get a specific quote for a fixed-or variable-rate product.