Commercial aircraft leasing market to witness 12% CAGR growth in Asia-Pacific between 2013-18

The commercial aircraft leasing market is expected to be driven in the coming years by a combination of difference factors. These include the continuing increase in passenger traffic, and the rising average price of aircraft. It is forecast that by the end of 2018 the market for commercial aircraft leasing will reach $320 billion.

The leasing of aircraft is an eagerly explored option by airline operators due to the complications of purchasing a aircraft outright. The purchasing of an aircraft is usually an expensive affair, with long waiting periods associated with a purchase. Also, not all airline companies can afford to fund the full expenses of aircraft purchases.

Another key reason that airline companies opt for leasing as opposed to an outright buy is that eliminating the need to earmark huge sums of capital for the purchase allows companies to maintain cash flow for easy management of operating expenses.

The Europe region is currently the largest geographic sector of the industry, while Asia-Pacific is the region which has seen the highest growth. It is forecast that between 2013 and 2018 the Asia-Pacific industry will see CAGR growth of around 12.2%. Long Haul & Medium Distance Aircraft represents the largest as well as the fastest growing aircraft type in the market.

The coming years will see growth driven mainly by the emerging economies in Asia-Pacific, Latin America and the Middle East. Key countries in the Asia-Pacific region include Thailand, Malaysia, Australia, New Zealand, Indonesia, Singapore, China and India. Some of the key drivers behind this growth include the increasing rate of employment, rising disposable income, increased frequency of business and leisure travel.