Copying and distributing are prohibited without permission of the publisher
START YOUR ENGINES
01 October 2005
As the popularity of engine leasing increases, existing players are becoming wary of market saturation but that is good news for airlines. Andrew McGuinness reports.
Read more:
Aviation
Jon Sharp
ELFC
Shannon Engine Support
Guggenheim
Aircraft value
ATA
aircraft lessor
At a time of continuing airline bankruptcies and falling aircraft values, engines are continuing their rise in popularity as a more secure investment for lessors.
Good asset management of maintenance cycles and costs ensure that jet engine assets retain their high value – even during a downturn.
The obvious attraction of these assets has led to an influx of new investors, including some banks, eager to take a share of this lucrative market. The growing potential for market saturation is worrying some existing independent players, but some new entrants to the market, especially banks, are keen to be involved only as financiers. The attention to detail needed to maintain the engines is only for those who are ready to make a long-term commitment as lessors.
Engine manufacturers control the majority of the engine lessor market because they have to provide this maintenance support, which can be very expensive. But independent lessors...
Take a free website trial to view this article. It's easy to get a trial - just follow this link or email sbains@euromoneyplc.com.
Alternatively, if you're already a subscriber or have a trial, simply log in below to read the article.
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
