Headwinds for airline leasing firms?

Last Modified: Sun Jun 05 2016 17:12:11 GMT+0530 (India Standard Time)
  • 40%
    of airplanes are hired from leasing firms such as BOC Aviation. This is up from 12% in 1990s. 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.
  • 13%
    Annual returns on capital invested in leasing firms - an astronomical figure in a world of low yields. But the outlook is looking cloudy. Low oil prices have encouraged airlines to keep their older and less fuel-efficient planes in the sky rather than acquire new ones.