Aircraft Leasing

Aircraft Leasing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry rent or lease aircraft and airplane equipment without operators. Major companies include Air Lease Corporation (the US), as well as AerCap and Avolon (both based in Ireland) and Dubai Aerospace Enterprise.

COMPETITIVE LANDSCAPE

Demand is driven by activity in the air travel industry. The profitability of individual companies depends on the fleet mix and the cost of financing rental inventory. Large companies have economies of scale in buying aircraft and accessing multiple sources of capital, as well as maintaining a diversified aircraft portfolio. Small companies can compete by providing superior customer service and depth of experience.

PRODUCTS, OPERATIONS & TECHNOLOGY

The majority of revenues come from the lease and rental of air transportation equipment. The aircraft leasing industry accounts for about 35% of the construction, transportation, mining, and forestry machinery and equipment rental and leasing market. Some aircraft rental firms also sell planes and aircraft engines and offer fleet management services to generate additional revenue streams. Firms typically offer between 100 and 1,000 aircraft for lease.