Newswatch 13th July 2017
With the ongoing aviation concerns in The Middle East, ranging from the “Qatar ban” to the “laptop ban” should lessors with aircraft in the region be apprehensive about risk of early returns? I thought it would be interesting to share with you some data taken from our new data platform iQ combined with our thoughts on what this might mean for some lessors.
The volume of leased aircraft is approaching 50% in the region, a figure that might surprise given the purchasing power of the big three airlines. Click here to see the data. Typically, early returns from the region are unusual but if there is uncertainty, it is likely that the lessee will be looking at exercising their return options and lessors should be reviewing their risk exposure. Our data shows that overall, fewer aircraft are on operating leases than financed via other means when compared to other regions and the global average. There are significant numbers including 175 A320s, 62 A330s and 81 B777s to name but a few on operating leases.
Most lessors have some exposure and the main A320 lessors are GECAS (26), Aercap (23) and ALAFCO (14); 777 wise Aercap (19), GECAS (17), Pembroke Group (5), Union One Leasing (5); A380s main lessors are no surprise with Doric (18) and Amedeo (8). The A380 and 777s are the aircraft which are bearing the brunt of the laptop ban, Emirates A380s in particular.
If you have aircraft in the region that we can help with or if you are looking to place new leases, our country risk model can help to reduce exposure from defaults and early returns. To find out more, get in touch with IBA’s Head of Advisory Paul Lyons at email@example.com.
Finally, we held our latest joint webinar with Norton Rose Fulbright this week looking at redeliveries and how to avoid disputes. Our next webinar is on the Tuesday 14th September, 8.30-9.30am and will focus on mid-life options for pax aircraft with a focus on passenger-to-freighter conversions. You can register your interest here.