Global Commercial Aircraft Leasing Market 2018-2022
About Commercial Aircraft Leasing
Commercial aircraft lease is a legal arrangement availed by airlines and other aircraft operators or leasing companies for diminishing the financial burden of the airlines while procuring new aircraft. As aircraft are flexible in deployment and the supply remains narrow, leasing them via short, medium, or long-term operating lease contracts allows airlines to maintain steady and stable cash flows.
Technavio’s analysts forecast the global commercial aircraft leasing market to grow at a CAGR of 6.33 % during the period 2018-2022.
Covered in this report
The report covers the present scenario and the growth prospects of the global commercial aircraft leasing market for 2018-2022. To calculate the market size, the report considers the revenue generated in the overall market from the provision of commercial aircraft (narrow-body, wide-body, and regional) leasing services.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Commercial Aircraft Leasing Market 2018-2022
Technavio recognizes the following companies as the key players in the global commercial aircraft leasing market: AerCap , Avolon , BBAM , GECAS , SMBC Aviation Capital
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Conversion of aircraft into freighters. Conversion of aircraft into freighters has been gaining significant momentum in recent times. Several airlines that carry cargo are seeking freighters, in addition to delivery companies like Amazon. For instance, as of November 2017, a Freighter-converted Boeing 767 was procured by Canada-based Cargojet. The airline had acquired a 767-300BDSF from Cargo Aircraft Management (CAM), the leasing arm of ATSG. On a similar note, Amerijet (an American cargo airline) has also committed to lease three Freighter-converted 767-300s from ATSG, by 2018. Earlier in February 2017, US-based Aeronautical Engineers (AEI) had signed a Letter of Intent (LoI) to provide at least eight CRJ200 freighter conversions for Canadian aviation group Avmax. The conversions were scheduled to begin in late 2017. The popularity of aircraft conversions, especially as freighters, is certainly a driver for the market growth. More such efforts by lessors to procure these aircraft are expected during the forecast period.”
According to the report, one of the major drivers for this market is Strong market position of Irish and Chinese lessors. The commercial aircraft leasing market is majorly constituted by Irish lessors. More than 45% of leased aircraft in the market have been leased out by Irish lessors. Interestingly, the country was the origin of aircraft business and has evolved to dominate the market in the past several years. Several favorable policies of the country have contributed to market growth. For instance, Ireland offers high capital allowance rates and low withholding rates to companies operating within its jurisdiction. This has encouraged international players to conduct core leasing operations from Ireland.
Further, the report states that one of the major factors hindering the growth of this market is Fall in the price of crude oil. 2014, the price of crude oil has been declining significantly. In 2015, the price of Brent crude oil (a trading classification of sweet light crude oil) fell below $40/barrel for the first time since 2009. Moreover, the average spot price for Brent crude oil in 2015 was $52/barrel compared with $99/barrel in 2014. The declining crude oil price has also been lowering the price of aviation fuels, thereby helping airline operators to increase their profit margin. Thus, airlines are seeking to directly procure aircraft, as against leasing them, to leverage the benefit of improved margins.
SMBC Aviation Capital
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