This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
viewpoints
Welcome to Reed Smith's viewpoints — timely commentary from our lawyers on topics relevant to your business and wider industry. Browse to see the latest news and subscribe to receive updates on topics that matter to you, directly to your mailbox.
| less than a minute read

Freighter financing: It's not easy being green

The environmental consequences of funding decisions are rising higher and higher in the list of factors that lenders and financiers must to take into account when evaluating how best to put money to work.

This is especially the case in aviation, and in the freighter conversion market in particular, as the world watches to see how the industry re-shapes itself in the wake of the pandemic and COP26. There is a fine balance to be struck between the economic gains to be made by converting older and less efficient aircraft models and the environmental benefits of newer, greener, purpose-built freighters.

Read about the issues in detail in Reed Smith’s special report, ‘Global air freight’s future: The sky is the limit’, available to download here: https://www.reedsmith.com/en/perspectives/global-air-freight

The company also warned green interests must be considered when looking at financing. It said that converting older, less efficient passenger aircraft into freighters may be unattractive to financiers with regulators, investors or shareholders who are actively engaged in environmental issues.

Tags

transportation, aviation, air freight, logistics

Related Insights