Global Commercial Aircraft Leasing Market Growth Opportunities Report 2021 – Space for Private Lenders to Bridge the Funding Gap in Aircraft Financing –

DUBLIN–(BUSINESS WIRE)–The “Global Commercial Aircraft Leasing Growth Opportunities” report has been added to from offer.

North America and Europe are the top performing regions in the aircraft leasing market, having the best legal environment and regulations for market players.

The overall impact of the COVID-19 pandemic has been small in these regions, as there have been minimal changes in rates of aircraft repossession and rent collection. Europe is a key pioneer in aircraft leasing with several leading lessors based in Ireland, which has an extensive support infrastructure as well as a strong talent pool.

Lessors are struggling to maintain liquidity in a weak economic scenario in aviation. Airline-owned leasing companies are selling off their leasing branches to consolidate and streamline their core airline operations. The critical situation has led to certain M&A scenarios in the aircraft leasing industry.

Lessors and airlines depend on various institutions such as banks, capital markets, debt and asset-backed securities (ABS). In the pre-pandemic scenario, banks were the main financial providers to the aviation industry and provided credit with less control. However, the situation has changed after the pandemic, banks are now taking a much more conservative approach.

The COVID-19 pandemic has brought banks to a very cautious state regarding the aviation industry. This shifted the focus from banks to largely state-owned carriers with sufficient support and access to funds.

Highly rated leasing companies, with a diversified portfolio and financing options and effective risk and asset management will be in a better position to take advantage of the post-pandemic aviation market. In 2020, capital markets increased their contribution to the aviation industry.

By mid-2021, there were nearly 90 new airlines in various stages of investment and negotiations to begin operations. These new start-ups focus on low-cost business models that will drive industry recovery and are a key area of ​​interest for backers. Lower lease rates, potential reduction in debt and other fixed costs for new carriers, a significant increase in the number of parked aircraft and early retirements leading to greater aircraft availability are key metrics behind these investments.

There is potential for consolidation in the aircraft lessor market (even before the pandemic). Several new entrants have appeared in the aircraft leasing market from Asia over the past decade. The difficulty of risk management, a fragmented air market and a huge difference in performance between the most powerful carriers and the others are some of the main factors that will drive M&A activity in this sector.

AerCap, the world’s largest aircraft lessor, has acquired some businesses in recent years, growing into a significant portfolio of aircraft, engines and helicopters. The company now collectively has more than 300 global customers and is also the largest customer of Airbus and Boeing.

The most notable acquisition in the aircraft leasing industry is the acquisition of General Electric Capital Aviation Services (GECAS) by AerCap in 2021 for nearly $30 billion. The aircraft lessor market is still fragmented and the major market leaders contribute less than half of the aircraft market, which is significantly less compared to other industries.

After the acquisition of GECAS, AerCap will have 2,098 aircraft in its portfolio. AerCap’s share of the rental fleet will constitute approximately 36% of the total fleet owned by all lessors worldwide. While AerCap has consolidated its market leadership position, significant competition is expected among other major lessors.

Main topics covered:

1. Strategic imperatives

  • Why is it increasingly difficult to grow taller?

  • The strategic imperative

  • The Impact of Top 3 Strategic Imperatives on the Global Commercial Aircraft Leasing Market

  • Growth opportunities fuel the growth pipeline engine

2. Growth Opportunities Analysis – Aircraft Leasing

  • Aircraft leasing value chain

  • Sale-Leaseback Model

  • Types of aircraft rental

  • Growth engines for commercial aircraft leasing globally

  • Global Commercial Aircraft Leasing Growth Constraints

  • Breakdown of financing sources in the commercial aircraft leasing market

  • Number of lessors in the global commercial aircraft leasing market

  • Aircraft Return Challenges

  • Number of aircraft leases ending between 2018 and 2022 – By aircraft type

  • Late Aircraft Redeliveries – Reasons and Significance

  • Top Lessors Operating Aircraft in 2020 – By Fleet Size

  • Top Lessors Operating Aircraft in 2020 – By Fleet Value

  • Amount of finance needed in the global aircraft finance industry from 2016 to 2023

  • Share of leased aircraft in the aviation industry worldwide

  • Discussion by region

3. Growth Opportunity Universe – Aircraft Leasing

  • Growth Opportunity 1: Demand for narrow-body aircraft to meet airline needs on short-haul flights

  • Growth Opportunity 2: Space for Private Lenders to Bridge the Funding Gap in Aircraft Financing

  • Growth Opportunity 3: Freighter Leasing to Fill Air Cargo Funding Gap

Companies cited

  • AerCap

  • Airbus

  • Boeing

  • General Electric Capital Aviation Services

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