Philippine Airlines : airlines establishing leasing companies is not sustainable

Philippine Airlines senior financial advisor Ian Reid, speaking at the CAPA Airline Fleet & Finance Summit 2016, said (03-Mar-2016) airlines must differentiate between "setting up captive leasing companies for tax or operational reasons that are leasing to your airline or group airlines." Mr Reid explained: "Airlines don't have enough capital to give it away to other airlines… I don't think the model of airlines setting up leasing companies is a sustainable one." Mr Reid added: "People may be set up leasing companies cause they've bought too many aircraft - that's not a valid reason."