Aircraft Leasing Market Analysis

Aircraft Leasing Market Overview

Aircraft Leasing Market Size Anticipated to Reach at a USD 312.2 billion with CAGR OF 8.20% between 2024 and 2032

COVID-19 Analysis

The COVID-19 outbreak has had a detrimental impact on the Aircraft Leasing Industry as well as the helicopter leasing industry, with the temporary shutdown of manufacturing facilities and weakened demand. Amidst the growing focus on curbing the spread of SARS-CoV-2, players in the global market for aircraft leasing market are trying to boost their supply chains and accelerate their operations to restrict further revenue losses. Additionally, with the gradual lifting up of the lockdown across countries and the novel coronavirus under control, the global market can recover faster in the ensuing years.

Market Dynamics

Drivers

Striking Increase in the Number of Air Passengers to be a Significant Growth Booster

Dramatic growth in the number of air passengers worldwide combined with the mounting volume of freight, and the continuous advancements in aircraft as well as airport infrastructure, especially in developing countries can be a few major growth boosters in the industry. Moreover, since aircraft leasing offers balance sheet and tax advantages, its demand is expected to soar even more in the years ahead.

Opportunities

Rising Trade of Industrial Commodities

Latest advancements in the aircraft leasing market include rising trade of industrial commodities, developments in airport infrastructure across emerging nations and globalization. These factors offer a host of attractive opportunities to the leading firms in the aircraft leasing market. Other than this, low lease and interest rates and the soaring demand for low-cost carriers, along with the drop in crude oil prices will also provide opportunities to the firms in the years to come.

Challenges

Government Rules and Taxation Policies to Pose a Challenge

The soaring number of strict and unclear leasing taxation policies and regulations are anticipated to be major deterrents in the global market over the next several years. Also, the huge asset recovery risk related to airline bankruptcy can be another challenging factor in the aircraft leasing market.

Segment Insights

Wet Leasing Type to Take Control Over the Global Market

Some of the leasing types considered in the report are dry leasing and wet leasing. The wet-leasing segment can expect to seize the biggest share in the global market over the review timeline as this type offers a host of benefits including reliability, customization and low cost. A wet-leased aircraft can be used for flying services into the economies where the lessee is prohibited from operating. Apar from this, wet lease type also helps circumvent political or regulatory restrictions.

Narrow-Body Aircraft Type to be the Leading Segment

Major aircraft types analyzed in the market study include wide-body, narrow-body, and more. In the lead is the narrow-body segment, and can gain the highest share in the global market over the analysis period. However, the market for wide-body aircraft is quite lucrative in regions like North America and Europe and can therefore, catch up with narrow body segment in the years to come.

Asset-Backed Security Type to Lead the Global Industry

Security types included in the report are Asset-Backed Security (ABS) as well as Non-ABS. With the purchase of asset-backed security type, investors are able to have access to principal payments and interest of multiple assets without the need to originate them. Since every security level has only a few underlying assets, the chances of default and various credit risks are extremely low. As a result, the demand for ABS type is far more than non-ABS in the global market.

Regional Insights

Asia Pacific Makes Tremendous Progress as Air Traffic Soars

Asia Pacific is touted to emerge as a the fastest advancing market for aircraft leasing in the following years, as a result of the mounting requirement for cost effective operation of aircrafts, and the surge in technological innovations. The soaring preference for fuel-efficient aircraft combined with the rampant increase in air traffic across the region has also been favorable for the market. The growing number of leasing vendors, improvement in the infrastructure, supportive tax policies, and the affordability of the available lease rates could also bolster the market growth rate in the coming years. The rising air passenger traffic, rapid increase in GDP per-capita and the fast growth of the tourism sector also benefit the APAC market. The region has been witnessing a surge in low-cost aircraft carriers, which has been working in favor of the commercial aircraft leasing market. China has been successful in creating a lucrative aviation leasing industry backed by constant support from the government as well as government-owned banks.

Recent Development

On Jul.27, 2023, 

Voyager Aviation Holdings, LLC (VAH), a leading global aviation investment firm, announced that it has reached an agreement with Azorra Explorer Holdings Limited (Azorra), an affiliate of Azorra Aviation Holdings, LLC, to sell all of its assets to Azorra, while maintaining ongoing employee and business arrangements with aircraft lessees.

The agreement will create a stronger, more diversified platform, bringing together a global customer base, talented employees, and unique commercial aircraft leasing solutions. The combined platform will benefit from scale, asset and customer diversification, a strong balance sheet, and the melding of two world-class teams.

On Jul.26, 2023, 

Go First (earlier GoAir), an ultra-low-cost airline in India, announced receiving the National Company Law Tribunal (NCLT) approval to use leased aircraft. In its interim order, the tribunal mentioned that Go First could use leased aircraft to resume operations as long as the aircraft/engines are registered within the safety norms prescribed by the regulator.

On Jun. 05, 2023, 

AviLease, a jet leasing company owned by Saudi Arabia's Public Investment Fund, announced its plan to acquire a London-based aviation finance business from Standard Chartered Plc. AviLease and Standard Chartered are in the last phase of finalizing the deal that could be valued at€3.5 billion ($3.7 billion). Sovereign wealth fund bankrolls push to build up new sectors.

On Jun. 20, 2023, 

ZeroAvia signed a purchase agreement for a hydrogen powertrain with MONTE Aircraft Leasing. The definitive agreement extends a previous MoU signed between the companies, aiming to retrofit nine-19 seat aircraft with the ZA600 powertrains for operators from 2025 while also offering financing, infrastructure, maintenance, and hydrogen availability services to operations. The deal also represents a key commercial milestone for ZeroAvia, with its first build slots of 600kW ZA600 engines now secured. Companies

On Apr.25, 2023, 

At the Aero Dublin 2023 conference, Vmo Aircraft Leasing (Vmo) and H55 announced their collaboration on developing leasing programs for electric aircraft. Companies announced their commitment to working together to develop leasing solutions for new clean aviation products against the backdrop of the Revolution. Collaboration enables Vmo and H55 to pursue fast-growing business opportunities in clean aviation technologies.

Competitive Landscape

Firms Collaborate or Acquire Other Vendors to Boost Product Offerings

A number of firms in the aircraft leasing Market focus on introducing new products to cater to the constantly evolving customer preferences. Additionally, market leaders frequently collaborate or acquire other companies to expand their offerings as well as customer base. In view of these factors, the global market has become extremely competitive, while the presence of large and small firms also adds to the rivalry quotient.

Furthermore, in-house production capacity, geographical footprint, R&D investments, robust client base and product offerings have turned out to be highly important focus areas for the players to gain a competitive edge in the global market. Firms are also competing on the basis of product quality, reliability, cost as well as aftermarket services. It is absolutely vital for companies to provide high-quality and advanced aircraft to remain relevant in the intensely competitive industry.

List of Key Companies Covered in this Report

• AerCap (Ireland)


• Air Lease Corporation (US)


• BOC Aviation (Singapore)


• GECAS (US)


• BBAM LLC (Australia)


• CIT Commercial Air (US)


• Aviation Capital Group (US)


• Boeing Capital Corporation (US)


• SAAB Aircraft Leasing (Sweden)


• International Lease Finance Corporation (US)

Recent  News 

• November 2020 – Sunrise Airways (Haiti) is about to lease the 9H-VDO from Galistair (Malta). Sunrise Airways will be using the A320 for flights to Santiago de Cuba, Holguin, Camagüey and Havana Int'l.


• January 2020 – Kennedy Lewis Investment Management and Arena Aviation Capital, an aircraft investment management firm have formed a partnership that pertains launch of a USD 1.5 billion worth aircraft leasing platform. The platform called KLA Aviation Finance has been formed with the aim to procure advanced technology commercial aircraft assets that are leased to global airlines, with the primary focus on new and young narrow-body aircraft.

Report Overview

The report industry overview gives the aircraft leasing market outlook, while also focusing on segments such as the helicopter leasing industry and the commercial aircraft leasing market. The report has covered the base year, projected period as well as size during the given period. The market study also comprises some of the key developments post the COVID-19 outbreak and the effects of the novel coronavirus along with the lockdown on the growth of the global market. The report also throws light on the latest business scenario covering the expected as well as the historical value, in terms of volume and value, technological developments, and the top mechanical lock industry factors that induce growth. The report also lists the leading global aircraft leasing market manufacturers along with the competitive strategies adopted by them to stay relevant in the industry.

Scope of the Report

The scope of the report outlines the expected aircraft leasing market growth rate during the analysis period, size of aircraft leasing market, aircraft rental segment and the latest trends in the aircraft leasing industry.

Segmentation Insights

Information by Leasing Type

• Wet Leasing (Aircraft, Crew, Maintenance and Insurance)


• Dry Leasing

Aircraft Type

• Narrow-body


• Wide-body


• Others

Security Type

• Asset-Backed Security (ABS)


• Non-ABS