12-Oct-2010 10:08 AM

LCCs and Asia Pacific recovery fuelling growth of aircraft leasing

Frost & Sullivan, in its "World Aircraft Leasing Market Report", stated the emergence of LCCs in the Asia Pacific and the recovery of the industry in fast-growing nations such as India and China is fuelling growth in the aircraft leasing business (Bangkok Post, 12-Oct-2010). Frost & Sullivan stated that at a compound annual growth rate of 5.76%, the world's total aircraft owned by all leasing firms is expected to reach 8,646 in 2015, following growth of 7.4% to 6,180 aircraft in 2009, accounting for over 31% of the world's active fleet. Frost & Sullivan stated a lack of available capital for procuring new aircraft and reduced interest rates is triggering growth in the aircraft leasing market. The report also revealed that on average, Europe and the Asia Pacific rely more on leasing companies than do airlines in North America.

Frost & Sullivan: "While the Asia Pacific region accounts for 16.9% of aircraft with airlines in the world, it accounts for 21% of the global aircraft leasing portfolio. Historically, the Asia Pacific has been home to smaller numbers of business aircraft than commercial aircraft. The majority of the aircraft leasing portfolio consists of commercial aircraft, which comprise 94% of the total leasing portfolio ... The aircraft leasing industry in Asia Pacific was worth USD24.24 billion in 2004. This region is the fastest growing in the world, with an annual growth rate of 8.2% from 2004-08," R Madusudanan, analyst. Source: Bangkok Post, 12-Oct-2010.

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