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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.
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
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