New England’s crowd of aviation finance companies contains some big names: Bank of America’s finance arm sits in Rhode Island, and Sovereign Bank’s is in New Hampshire. GE Capital’s Corporate Aircraft Finance division is in Connecticut.

And now, Bridgeport, Connecticut-based People’s United – which has recently made a big push into Eastern Massachusetts – has joined the party.

In the aftermath of the recent economic turmoil, the aviation finance market is at its low point right now, according to Vincent Cianciolo, president of People’s Capital and Leasing Corp., the People’s United division set to administer the new aviation wing.

But after recent years in a nosedive, People’s United thinks the small aviation market is climbing again – and right now, it’s an excellent time to move into the business.

The bank announced in February that its new Business Aviation segment would operate under the People’s Capital and Leasing Corp. unit. Although People’s has done some aviation finance previously, the new segment, and the two newly hired vice presidents set to run the division, marks a significant move into the industry.

No-Frills Flying

The banks and brokerage companies in this field arrange financing for all types of airplanes, jets and helicopters, but they go after different niches and different customers. For People’s United, the prime target is smaller or mid-sized jets and helicopters to be used for business purposes, Cianciolo said.

But, he explained, the Business Aviation team is targeting specific businesses for which the airplane is an essential part of operations. Small charter airlines, companies that operate medical evacuation services, or those that use aircraft to ferry people to and from offshore oil rigs are all good examples of businesses that require their airplanes, rather than those that use them as a discretionary luxury.

These aircraft-dependent companies are a better risk, according to Cianciolo. The recent economic downturn brought the market to a halt in some sections of the industry, particularly for those that financed personal aircraft for high net-worth individuals. Catering to businesses that rely on their jets is more appealing, he said, because it’s far less elastic. Prices for the aircraft, he said, will generally fall between the “low millions” to $10 million-$12 million.

Robert Howe, vice president of the National Aircraft Finance Association (NAFA), and president of Oxford-based Dorr Aviation Credit Corp., can attest that business has been slow of late. Several years ago his company had 15 employees; it now has four.

Dorr Aviation works as a broker between the customer and the bank that underwrites the loan, and his shop deals in both personal and corporate aircraft. But the recession hit hard. It wasn’t a matter of borrowers falling behind on their loans – it was because borrowers stopped showing up.

“The first thing that goes on the corporate side, when a company starts receding … is the flight department,” he said.

But Dorr, like Cianciolo, senses a lift in the market, as more would-be customers have come calling in recent months.

‘A Good Business’

Although the aviation finance business is uncommon among community banks, People’s United joins a handful of Massachusetts institutions with a history in the industry, including the $1.1 billion, Whitinsville-based Unibank for Savings and the $2.8 billion Salem Five Cents Savings Bank.

Since 2006, Commerce Bank & Trust Co. in Worcester has financed mostly personal aircraft, Commerce CEO Brian Thompson said, and won’t be competing directly with People’s United.

People’s United is aiming for much larger aircraft, he said, describing Commerce’s niche as the “flip side” of the Connecticut bank’s business. Commerce customers usually want financing for smaller, four-seat aircraft, often needing loans in the hundreds of thousands of dollars – much smaller than People’s sweet spot.

Thompson said the aviation finance business – small and large alike – did shrink considerably the past few years.

“In the darkest and gloomiest days of 2008 and 2009, I would say the industry came to a pretty good stop,” he said.

Despite that, Thompson said the bank rode out the shrunken market and is looking to a more robust year ahead – “Generally, the business is a good business.”

People’s United will be going up against some of the larger players in the market, including Bank of America and GE Capital. Cianciolo said the bank has hired some experienced hands to solicit business: Bob Sommers, who has 26 years of aviation finance experience with institutions such as TD Equipment Finance and Wachovia Equipment Finance; and Jim Pulie, who has worked with Webster Capital Finance, CIT Group Inc., and United Technologies Corp.’s Pratt & Whitney and Sikorsky Aircraft subsidiaries.

Cianciolo said the aviation division, although far smaller than some competitors, intends to compete with the big banks by offering customers better service coupled with the resources of People’s United.

“We’re a fairly good-sized finance company – we’re certainly in the top 50 in the U.S. – and we’re continually looking to move into new industries.”