Fund management company Röntgen Asset Management (UAB "Ketvirta diena") has entered the global aviation asset market - in March, Röntgen Aviation Fund made its first three acquisitions, investing more than EUR 3 million. Röntgen Aviation Investment Fund has made three acquisitions in the first three months of the year, investing USD 1.5 billion in aviation assets: engines and landing gear.
"The aviation sector today has everything a modern investor is looking for - real demand, limited supply and a global market. That is why we are entering this field by acquiring, refurbishing and disposing of highly liquid aviation assets: engines, landing gear and other critical components," says Simonas Baciulis, Head of Röntgen Asset Management.
According to the International Air Transport Association (IATA), global passenger traffic will grow by 10.4% in 2024, reaching an all-time high. Load factor has reached an all-time high of 83.5%, reflecting not only a post-pandemic recovery in travel demand but also a clear supply problem.
In 2024, the world produced fewer commercial aircraft than the year before. Boeing, one of the market leaders, produced a third less than in 2023, while Airbus, while maintaining its growth, missed its production targets.
With aircraft manufacturers unable to return to pre-pandemic production levels and unable to meet growing demand, rising flight demand and tight supply chains have further stimulated the secondary market for aviation assets, leading to a significant increase in the demand for, and prices of, second-hand aircraft and components.
"The Röntgen Aviation Fund for Informed Investors acquires high-demand aircraft components, which we sell to flight or aircraft rental companies after refurbishment and certification. We have the necessary competences and partnerships that allow us to invest strategically and accurately," says Baciulis.
About Röntgen
"The Röntgen Aviation Fund is one of three funds managed by Röntgen Asset Management (UAB "Ketvirta diena"). The Real Estate and Private Debt Funds will be launched shortly.
Röntgen's sister company, Röntgen (UAB "Third Day"), has been active in the aviation sector since 2022-2023, when it offered to finance several business projects for the acquisition, repair and sale of aircraft components to retail investors through the Röntgen crowdfunding platform, together with Lithuanian and Swedish partners. The aerospace segment is one of the Röntgen Group's strategic sectors.