Global Aircraft Leasing Market Forecast
The Global Aircraft Leasing
market is projected to reach the valuation of USD 473.6 million by the year
2026 by growing at a CAGR of 7.5% during the forecast period 2020-2026. The
aircraft leasing market is expanding its foothold with the rise in aircraft
operators and the companies that, in recent years, are allowing aircraft lease
In the past few years,
numerous airline companies have substituted aircraft leasing for their
operations to reduce the financial burden and to surge the number of aircraft.
Due to these reasons, the aircraft leasing market has grown extensively.
Additionally, another prime
reason for the market's growth is the commercial banks that are the prime
source of aircraft financing that are helping the leasing companies to gain
considerable momentum to organize themselves into the aircraft leasing market.
These are the prime factors that are positively influencing the market for
aircraft leasing at the global level and are expected to increase at a rapid
pace to gain more valuation during its projected period.
At the same time, wet-leasing
aircraft are favored more to be acquired for a short period of time, and for
this, the market is gaining substantial demand.
Aircraft Leasing Market: Overview
Aircraft lease is a
contractual arrangement availed to airlines and other aircraft operators (lessees)
by leasing companies (lessors). Its main advantage is to lessen the financial
burden on the airlines' balance sheet while procuring new aircraft or adjust
capacity over shorter terms.
The structure of a lease
agreement gives specific obligations, some of which are a combination of a
security deposit and a monthly lease rate based on the aircraft value and its
depreciation schedule. To compensate the risk involved, the lease rate should
reflect the sum of all risks associated with the multiple business layers,
along with the macroeconomic aspect. There is a practice of increasing the
security deposit depending on the legal and operational considerations of the
specific country and lessee.
Some problems faced by
lessees in developing countries will include the poor historical past
performance of local airlines, inexistent credit rating, difficulties in
exporting hard currencies back to lessors or high-interest rates, and currency
mismatch between the income and its liabilities (airfare sales and lease payment).
Legal aspects and cost of recovering and remarketing the asset should the
lessee default will also impact the deposit amount and rent required by lessors
to compensate for those factors.
Provides flexibility for
Aviation works in a highly
regulated business environment of which compliance with its regulations is of
paramount importance. Maintenance is vital to safety, and all other activities
from financing to catering are essential to the final consumer product, a
contract of carriage sold as a flight ticket. While numerous older airlines
were government-owned at some point, this has shifted through liberalization
dramatically, especially in the mature markets (North America and Europe). In
emerging economies, the role of government-controlled airlines is still
significant and even dominant in the fast-growing Middle East regions.
Aircraft leasing for
commercial purposes is increasing day by day as more people prefer to travel by
airplane than any other mode of transportation. With the value of the
commercial leased aircraft asset portfolio projected to hit USD 502 billion by
2024, commercial aircraft leasing is undoubtedly a standard option for
operators seeming to expand their fleets to meet growing traffic demands. These
operators traditionally purchased their planes, but now are increasingly
turning to operate leases instead. It's a gentle balance of determining which
aircraft will maintain their value and maintaining the risks of ownership.
Aircraft leasing cost is very
high, and thus for small airlines, it is not feasible to afford high costs due
to economic issues. The total leasing cost includes not only financing rates
but also the insurance costs are also included; these costs can be higher than
Aircraft Leasing Market: Leasing Type
Based on leasing type, the
global aircraft leasing market segmented into Wet leasing and Dry leasing. Wet
leasing is expected to grow at a significant rate during the forecast period.
As in Wet Lease, ACMI (Aircraft, Crew, Maintenance, and Insurance) is issued by
the lessor. Usually, the leasing term ranges from one month to two years, and
the lessor controls the aircraft's operating authority.
Whereas in Dry leasing, the
aircraft is provided by the aircraft owner/lessor (the aircraft operator or the
airline). The Lease does not provide crew, insurance, fuel, maintenance, or
support equipment. Dry leasing is used for a longer period of time.
Aircraft Leasing Market: Aircraft Type
Based on aircraft type, the
global aircraft leasing market segmented into narrow-body, wide-body, and
others. The narrow-body segment is expected to have the largest market share
during the projected period. The wide-body segment includes the aircraft
leasing market procured by the aircraft manufacturers. These aircraft OEMs are
mostly present in North America and Europe, thereby resulting in higher market
size in these regions.
Global Aircraft Leasing Market: Regional
Based on region, the global aircraft leasing market segmented
into North America, Europe, Asia Pacific, Latin America, and Middle East &
Africa. Asia-Pacific region is expected to be the fastest-growing market for
the aircraft leasing market during the projected period. Over the years, with
growing incomes across the region, there has been an increasing demand for
airplane travel in the area, which propels further developments in aircraft
leasing. It is anticipated that by 2035, more than 16,000 airplanes would be
delivered in the region. Moreover, due to the cheap labor rates, North American
airline companies will outsource 60% of their retrofitting activities to Asia,
where it has a significantly high source of income.
leading companies of Aircraft Leasing Market are AerCap, Air Lease Corporation,
BOC Aviation, GECAS, BBAM LLC, CIT Commercial Air, Aviation Capital Group,
Boeing Capital Corporation, Saab aircraft leasing, International lease finance
corporation, Dubai aerospace enterprise, Chapman freeborn, Textron financial, General
electric capital aviation services (Gecas), Nordic aviation capital, Avolon, Smbc
aviation capital, Fly Leasing Limited and other prominent players.
Ø March, 2020: AerCap
Holdings N.V. announced it had signed an agreement with euroAtlantic Airways, a
chief provider of ACMI services as well as charter aviation services, for the
lease of two used Boeing 787-8 aircraft. The aircraft are scheduled to deliver
in the spring of 2021, and will be the first 787s to be based in Portugal.
Ø October, 2019: Garuda
Indonesia and GECAS have entered into a lease agreement for two 737-800
Boeing-converted freighters (BCF). The passenger-converted aircraft are slated
to be phased in mid-2020 and will provide additional capacity to Cargo Garuda
Indonesia, the Indonesian National carrier’s strategic business unit with three
freighters currently in use.
Scope of the Report
Historical data – 2016-2019
Base Year – 2019
2020 – 2026
Revenue in USD Million
U.S, Canada, Germany, UK,
France, Italy, Spain, Brazil, Mexico, Argentina, Japan, South Korea, China,
India, UAE, South Africa, Saudi Arabia
By leasing type, Aircraft type, Security type with Region.
AerCap, Air Lease Corporation, BOC Aviation,
GECAS, BBAM LLC, CIT Commercial Air, Aviation Capital Group, Boeing Capital
Corporation, Saab aircraft leasing, International lease finance corporation,
Dubai aerospace enterprise, Chapman freeborn, Textron financial, and other
Ø Wet Leasing
Ø Dry Leasing
By Security Type
Ø North America
Ø Asia Pacific
Ø Latin America
Ø Middle East &
The objective of the Study:
Ø To analyze and forecast the global Aircraft Leasing
Market size of the market in terms of value.
Ø To examine the careful market segmentation and
forecast the market size, in terms of value, based on the region by segmenting.
Ø The Global Aircraft Leasing Market segmented into
five regions, namely, North America, Europe, Asia Pacific, Latin America,
Middle East & Africa and their leading countries.
Ø To outline, categorized, and forecast the global Aircraft
Leasing Market based on the leasing type, aircraft type, and security type.
Ø To examine competitive developments like
technological advancement, services, and regulative framework within the global
Aircraft Leasing Market.
Ø To highlight the impact analysis of the factors
affecting the market dynamics such as drivers, restraints, opportunities, and
Ø To strategically profile the key players and
comprehensively analyze their market shares along with detailing the
competitive landscape for market leaders.
Ø Equipment/system suppliers
Ø Potential investors
Ø Key executive and strategy growth
Ø End users
Ø Government institutions
Ø Consultancy firms