Aircraft Finance Skill Set Demand Analysis
PPR recently completed an analysis of the roles on which we have been engaged over the past 18 months to attempt to identify any trends or specific high demand skills sets within the aircraft finance industry. Our analysis covered requirements from Aircraft & Engine Lessors and the Aviation Banking and Finance sector. Below is a breakdown of our key findings from the research. Please note that the figures only reflect roles presented to PPR.
1.Transactional Roles in highest demand
Figure 1: Comparison of roles by functional area
What is immediately clear is that transactional roles have been in highest demand. The transactional function brings together Legal, Technical and Deal Analysis related roles. These roles have been in exceptionally high demand as employers are keen to find people with prior industry experience and have little time to train people due to the intrinsic pressures of their own business.
Figure 2: Comparison of Transactional roles
As we dig further into the analysis of the transactional roles, we discovered that demand is evenly spread between the three areas:
- 33% of the requirements were for Technical people
- 32% for Deal Analysis (Credit & Pricing)
- Legal (including contracts) slightly ahead at 35%
The first half of 2015 witnessed a near 50% increase in demand for contracts management skills. This has returned to normal levels however it consistently remains one of the most in demand skill sets.
2. Comparison of top 3 skills over 18-month period
Figure 3: Comparison of roles over 18 month period
Comparison over the last 18-month period shows Technical skills being in highest demand during late 2014 and early 2015. Technical did see a dip in the second half of 2015, however, we anticipate this will return to normal levels.
Pricing expertise was not as sought after, as we expected, however this function is often open to people with non-industry experience as well as graduates. PPR do not always see roles at this level.
3. Origination Opportunities
Airline marketing experience has seen consistent steady demand over the past 18 months.
The new wave of aircraft investors has created significant demand in the area of aircraft trading. There are many new entrants that have a business model of buying aircraft on lease in order to quickly create scale. Many of these new entrants have stated that they are not able or willing to compete with Asian based investors with cheaper capital. We have also seen a number of new entrants focus on the end-of-life market by buying 15-25-year aircraft on lease.
Figure 4: Comparison of Origination opportunities
Mature lessors are also seeking opportunities to trade or set up JVs with new money from alternative investors. The mature lessors are also attracting new investors into the market as a result of their interest in finding new and creative ways to trade aircraft.
4. Observations
The analysis also highlighted the following observations:
- Although we haven’t commented much on accounting positions, we did see an increase in demand for transactional tax expertise, specifically during the first half of 2015. As lessors mature, we expect they will bring their tax expertise in-house.
- In comparing any two 6 month periods, we witnessed the sharpest increases in demand for Contracts, Trading and Tax skills.
- 70% of all roles were focused in Europe, of which 75% were in Ireland. This is largely due to the drive for operating lease platforms to have a base in Ireland. The majority of new platforms consider Ireland as a supportive and favourable base for their operations..
- When considering new marketing professionals, many lessors will promote internally. This may contribute to the demand for transactional skills as employers sometimes need to backfill these positions. This is most likely the case with larger lessors that have capacity to train.
Figure 5: Positions by geographical location
5. Crystal Ball
So what does the future hold?
To date in 2016, newly commenced assignments suggest that the highest demand will, again, be in the transactional areas. We anticipate that the need for Aviation Finance skills will continue to be strong through 2016 across all disciplines. The majority of openings appear to be European and more specifically for the Irish based aircraft leasing community, as US and Asian investors continue to leverage the benefits of having a presence here. This will continue to put pressure on the limited existing pool of skills.
There have also been increases in origination roles for the aviation banking community and we anticipate further demand in this area, particularly in London and New York.
The good news for companies sourcing staff in Asia is that there appears to be less pressure, compared to the 2011-2014 time period. At this point in time, many companies have established their core teams in Asia and we are only seeing some replacements or smaller scale growth to complement existing teams. It is often challenging to recruit for the high demand transactional areas in locations like Singapore and Hong Kong due to the general lack of existing industry experience in the region.
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About Peak Performance Recruitment
Peak Performance have been servicing the recruitment needs of the global Aviation Finance industry since 2009. We have an understanding of the structures and complexities of companies that invest in an aviation platform. We have played an integral role in the development of many leasing platforms for both start-up and established top tier companies.
Based in Ireland, the global hub of aircraft leasing, we operate internationally and have successfully sourced key personnel for organisations across Asia, the Americas and EMEA. Our proven track record of success in this sector demonstrates that we have the resources and network to effect successful talent searches for the aviation industry on a global basis.
For more information contact:
Keith Garry
Managing Director
Peak Performance Recruitment Ltd.
email: keith@aircraftleasing.ie
Tel +353 42 941 9660
MB: +353 86 8233 084