Industrials

Aerospace & Defence (Private Sector)

Deals Activity: Moderate

Restructuring Activity: High

A post-pandemic upsurge in travel has renewed sector demand, while geopolitical issues are likely to support increased global defence spending.

Deals activity in Aerospace & Defence (Private)

  1. 1. The sector has seen a low but relatively steady flow of deals in recent quarters.
  2. 2. There has been a steady uptick – from a low base – in activity in recent quarters.
  3. 3. Potential deal activity could be driven by recent commitments around the world to increase defence spending over time.

Restructuring activity in Aerospace & Defence (Private)

Aerospace & Defence (Private Sector)

Aerospace

COVID restrictions have hit sales and deliveries as the sector was buffeted by successive lockdowns.

Yet the post-pandemic recovery has been remarkably swift. Airlines have resumed deliveries and orders of planes. Airbus has a backlog of about 7,000 planes and hopes to increase production of its A320neo airliners to 75 a month by 2025.

How this recovery will be sustained considering elevated oil prices and global economic volatility remains to be seen. Climate change, environmental regulations and consumer demand will drive innovation across the industry. There is potential significant disruption from the production of Sustainable Aviation Fuels (SAFs), more energy efficient models and a shift towards narrowbody planes, as well as an emphasis on 'point-to-point' flights.

Defence

The geopolitical challenges of recent months are unlikely to go away anytime soon. In the West, many national governments – which have historically failed to fulfil their NATO obligation to spend 2% of GDP on defence – are committing to investing heavily in their armed forces. Spending in the sector is expected to increase as a result, alongside more investment in new technologies.

Challenges remain for the industry. A limited supply of critical components, notably electronics, is set to continue. Historic overspends and delays on projects will become increasingly acute. And manufacturers will seek to manage competing priorities and navigate global political tensions to maximise output.

Monarch Airlines

We were appointed as Joint Administrators to MAEL, which provided aircraft maintenance services.

We were able to protect over 100 jobs through transfer of specific MAEL operations to new operators. We also realised value for creditors through the sale of over 6,000,000 parts held in inventory, as well as hangars at two airports.

Find Your Expert

Kenny McKay is Interpath Sector Leader for Industrials, which includes Aerospace & Defence as one of three core segments. Nick Burberry leads our approach to the Aerospace & Defence sector nationally. For a full list of our senior people with experience in this sector use the button below.

Our senior team