The Global Market for Commercial Aircraft Leasing in terms of Leased Asset Portfolio Value is Projected to Reach US$314.8 Billion by 2020
Healthy Outlook for the Commercial Aerospace Sector Drives
Demand for Commercial Aircraft Leasing, According to a New Report by Global Industry Analysts, Inc.
GIA announces
the release of a comprehensive global report on Commercial Aircraft Leasing. The
global market for Commercial Aircraft
Leasing in terms of leased asset portfolio value is projected to reach
US$314.8 billion by 2020,
encouraged largely by the healthy outlook for the world commercial
aerospace industry.
Aircraft leasing,
as an alternative to outright purchase, is growing in prominence. By eliminating
the need to earmark huge capital outlays required for aircraft purchase,
leasing allows airline operators to shore up cash flows and maintain liquidity
to meet operating expenses. Leasing eliminates the long waiting period
associated with new aircraft purchase. Immediate delivery of aircraft with
flexible payment options and the accompanying tax benefits make this financing
model extremely attractive to airline companies. Aircraft leasing is therefore
a cost effective fleet management strategy for low-cost carriers with limited
capital outlays.
Key factors
driving growth in the market include increase in the number of low-cost carriers
in developing countries, and the need to expand fleet sizes to accommodate the
expected growth in air passenger and cargo traffic. Aircraft leasing, against
this backdrop, is evolving into a mainstream aircraft procurement strategy. Soaring
aircraft costs, increasing fuel prices and shrinking profit margins, are also
benefiting the concept of aircraft leasing. The steady increase in the cost of
air fuel is forcing airline companies to disengage their aging fuel guzzling
aircraft models and add new fuel efficient variants to their fleet, thus
fuelling demand for aircraft leasing.
Aircraft leasing in Europe and North America is witnessing growth, encouraged
by the improving economic climate in these regions. The global airfreight
market is projected to witness impressive growth over the next 20 years, driven
by the positive long-term economic outlook, liberalization of regional
economies, and expanding international trade. Air cargo traffic on the
Asia-North America and Europe corridor is forecast to grow at the fastest rate,
with China generating the maximum average annual growth. The Asia-North America
corridor is also forecast to emerge into one of the leading airfreight markets
worldwide. This projected rise in airfreight volume and freighter movements
across different countries will boost demand for a range of freighter aircraft
in the coming years. Against this backdrop, lease rates for freighter aircraft
are expected to witness strong growth.
As stated by the
new market research report on Commercial Aircraft Leasing, Europe represents the largest market
worldwide. Asia-Pacific is forecast to emerge as the fastest growing market
with a CAGR of 7.7% over the analysis period. Leasing of long haul
& medium distance aircraft dominates the global market.
Major players
covered in the report include AerCap Holdings NV, ALAFCO Aviation Lease and
Finance Company KSCC, Ansett Worldwide Aviation Services, Aviation Capital
Group Corp., BBAM LLC, BCI Aircraft Leasing Inc., BOC Aviation Pte Ltd., Boeing
Capital Corporation, CIT Group Inc., GE Capital Aviation Service, Macquarie
AirFinance Ltd., SAAB Aircraft Leasing, and SMBC Aviation Capital among others.
Comments
Post a Comment