As many of you will know, the effects of Covid-19 are going to change the size and makeup of airline fleets, and do so quickly.
In the next 20 months, it's possible that many older aircraft types could be universally withdrawn from service, along with significant numbers of older variants of current generation aircraft including the Boeing 777, A330 and A380. IBA, the leading aviation consultancy, estimate there will be an aircraft oversupply of up to 2,500 narrow and widebody aircraft in the market, with global demand, once the current restrictions are lifted, possibly declining by 20% by the end of 2021.
This potential reduction in widebody and narrowbody fleet may result in an uptick in early returns, lease re-negotiations and the worst case scenario - repossessions.To help manage, maintain asset values and reduce overspends during a repossession, IBA's asset management team have summarised key steps, considerations and typical costs to navigate and manage such scenarios as best as possible.
If your tech team needs additional support in remarketing, redelivery, repossession or lease reviews, our large and experienced asset management team can help.To receive more information about our services please contact us using the form below.
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To help reduce the impact from limited resources, technical representation and access difficulties, IBA provide an unmissable webinar session that will offer our best practice advice on how to approach transitions in the current market conditions. 2020 has been an unprecedented year for the aviation industry. For the first time in history aircraft lease ends will exceed lease starts. High levels of lease ends, fleet exits, and the challenges of the global pandemic requires more planning and earlier engagement around transitions. Our senior Asset Management team share their unrivalled expertise on the following areas: Current market trends in fleet divestiture, aircraft supply and lease ends How to approach lease re-negotiations and current market rates Managing the 737 MAX return to service Working through redeliveries in 'the new norm' and reviewing best practice The impact on shop visit forecasts and MRO demand This session is a must for Financiers, Lessors and Airlines. The slide deck is available to download here. If you have further questions please get in touch via our contact form.