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Credit Suisse Takes Aviation Game To Higher Altitude
Tom Burroughes
17 January 2020
has set up a new wholly-owned subsidiary, SCALE Aviation, which is designed to work with investors, airlines and other aviation parties. Aviation market
Based in Dublin, SCALE will focus on supporting Credit Suisse’s clients in driving increased aviation investment and helping to smooth the path for aviation deals. The announcement extends the Swiss bank's Global Markets Securitized Products’ platform.
SCALE will be a channel and liquidity provider for investors, aircraft lessors, airlines, and aviation manufacturers. It will help people and firms buy and sell aircraft, arrange financing and investment.
Targeting short-term warehousing of aviation assets, SCALE will assist aviation industry clients with fleet transitions, financing, and ease of execution to provide greater execution certainty for portfolio trading activities Credit Suisse said in a statement.
Such a move comes at at a time when UHNW individuals, for example, remain important users of private jets and associated aviation assets for work and play. (This publication has written about the sector here.) The health of this sector can illuminate some of the spending habits and risk tolerances of clients more broadly.
The bank said that SCALE is not an aviation lessor and will not be building a long-term investment portfolio of aircraft.
Earlier in January, , for example, issued a white paper explaining to family offices how the sector is changing, and pointing out issues such as the difficulty in finding sufficient pilots. The business of handling the tax, registration, HR and related matters in private aviation around the world is complex.