The Age of Aircraft Leasing: Where are we now and where do we go from here?

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The skies above Asia will get considerably more crowded during the next 20 years as airlines expand and passenger numbers increase. That timing couldn’t be better for aircraft leasing business.

Leasing aircraft is a profitable business, with an annual average yield of about 7-9%.

Boeing estimates that the number of airplanes in the Asia fleet will nearly triple in less than 20 years, from 6,350 airplanes in 2016 to 16,970 airplanes in 2035. Fast-growing LCCs within the region will help drive a need for 11,160 single aisle airplanes. Airplanes like the 787 and 777 have enabled airlines in the region to open new markets. These market dynamics will lead to regional need for 3,680 new widebody airplanes by 2035.

Growing on the back of such trends, aircraft leasing companies in APAC are in the midst of an investment spree, snapping up rivals — and their planes — to cater to surging demand for air travel.

To help provide perspectives the current leasing trends and models, we’re putting together the following aircraft leasing panel discussion at the Aviation Festival Asia 2017.

The Age of Aircraft Leasing: Where are we now and where do we go from here?

  • What does double-digit passenger growth mean to lessors?
  • Current leasing trends and models
  • What impact will the emergence of Chinese lessors have on the leasing industry?
  • Strategies to enhance returns: How to build size, gain market share and diversify funding sources
  • Using leasing as a rapid scaling tool
  • An eye on future fleets: What are the aircraft types to invest in and how can you better manage seasonality?
  • What are the short- and long-term leasing trends?

Panellists:

  • Jens Dunker, Senior Vice President, Aircraft Trading & Global Marketing, China Aircraft Leasing
  • Mega Satria, Chief Financial Officer, Citilink Indonesia
  • Les Stephens, Chief Operating Officer, Jetstar Pacific
  • Jason Pung, Vice President, Risk, Transportation Partners
  • Desmond Lin, General Director International Cooperation, VietJetAir

Moderator:

  • Peter Huijbers, Founder and Principal, PH Aviation Asia

Each participant in this panel has a unique story to share.

LCC as lessor:

Established in 2011, Transportation Partners has become an important subsidiary of Lion Group. The leasing company stated on 1-Jul-2016 that it has assisted airlines in arranging finance for almost 200 aircraft, both within and outside the Lion Group, and has over 400 narrow-body aircraft still to deliver.

Independent leasing company:

China Aircraft Leasing Group Holdings Limited (CALC) is the largest independent aircraft operating lessor in China. In expectation of a fast growing leasing market, CALC has been consistently expanding its aircraft fleet with an order of 60 ARJ21-700 series aircraft signed in July 2016 and the target of 173 aircraft to reach by 2022.

Aircraft order trends from fastest growing LCCs:

Indonesian LCC and Garuda Indonesia’s subsidiary, Citilink Indonesia, announced in September 2016 that it had added two new Airbus A320 as its 40th plane in order to expand its domestic routes. The arrival of these two aircraft is part of the company’s strategy to improve its service in the competitive LCC market. Citilink will operate eight new A320s by the end of 2016 and add 10 A320neo’s in the next two years.

Jetstar Pacific, a joint venture between Vietnam Airlines (70%) and the Qantas Group (30%), is planning more rapid expansion in 2016 as it aims to grow its fleet by 50%, from 12 to 18 aircraft. Jetstar Pacific grew at a rate of nearly 40% in 2015, marking its biggest expansion since it launched in 2008.

Also in Vietnam market, the fastest growing LCC VietJet Air first took to the skies at the end of 2011 and now operates a fleet of 40 A320 Family aircraft. The airline has placed firm orders with Airbus for a total of 119 A320 Family aircraft, including 54 A320s and 65 A321s. VietJet also placed an order of 100 Boeing 737 MAX 200 jets worth $11.3 billion to accommodate its strategy of growing in international route network, including long haul flights.

Join us!

With dynamic market views from Transportation Partners, China Aircraft Leasing, Citilink Indonesia, Jetstar Pacific and VietJet Air, this will probably be one of the most exciting panel discussions on aircraft leasing in 2017. Don’t miss it.

Check out our website here or contact me on phu.nguyen@terrapinn.com to see how you can get involved.


About Aviation Festival Asia
Now entering its 13th year, Aviation Festival Asia is one of the largest and most well-established commercial aviation shows for airline and airport executives from both the Asia Pacific region and across the world. In 2017, we are expecting to welcome over 2,000 attendees to the event, with over 900 airline executives across 7 premium conference tracks covering full service and low cost airline strategy & business models, passenger experience, marketing, IT systems, retail, human capital and more. Book your ticket now

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