The air-leasing sector may soon face harder times | The Economist
Part of our Scarce Resources thematic, the reduction in spending by airlines on planes, as well as a reduction in fuel costs is a good thing for bottom lines of these titans of the skies. Of course, there is another side to that coin as well . . . if companies aren’t leasing planes, then leasing companies aren’t buying planes . . .and manufacturers aren’t selling them.
When oil prices were high, airlines were desperate to replace gas-guzzling planes with new, fuel-efficient ones. Given the daunting commercial outlook, many preferred to lease their new jets, leaving the leasing firms to stump up the capital required to buy planes. Leasing firms are now responsible for about 40% of the big planemakers’ sales.
Source: The air-leasing sector may soon face harder times | The Economist
