Wednesday, February 21, 2007

The Challenges of Investing in Aviation

Investing itself is an art - in my opinion, it is the ultimate combination of a chess game and high stakes gambling, mixed in with some luck and lots of research. Investing in an aviation can either make an investor, or break one. Personally, I've begun investing in aviation myself, and I've done a little bit of homework on the subject, and this is what I have found.

  1. The number one money maker in aviation by FAR is the defense industry. Any company that is involved in aviation military technology = cha-ching.
  2. The number two way to make money is by investing in maintainence. Every aircraft must go through maintainence, and its the safest bet for a consistent income.
  3. Anything to do with aviation technology is also a safe bet
  4. Corporate or aircraft leasing companies, most of the time they make pure profit. They will defintly make more money now that the international markets are growing faster than there are aircraft available by the manufacturers.
  5. The airlines are by far the most volatile way to invest. Sometimes a safe bet, most of the time, not so much.

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