The global commercial aircraft leasing market was valued at USD 27 billion in 2016 and is expected to surpass USD 36 billion by 2021, says Technavio.
Technavio has announced its latest market research report on the global commercial aircraft leasing market under its aerospace portfolio. This market analysis discusses the major drivers and key emerging trends and offers an analysis of key vendors like AerCap, BBAM, CIT Commercial Air, GECAS, and SMBC Aviation Capital.
According to Avimanyu Basu, a lead analyst for aerospace research at Technavio, “The growth in low-cost carriers traffic will propel the demand in the global commercial aircraft leasing market.The demand for LCC services has been increasing across the globe, particularly in APAC.”
Owing to the cost-effectiveness of the LCC services, which include no-frills services, their demand has increased in the global market. LCCs have commenced different market penetration approaches to increase their respective market shares. Fast turnaround time, simplified fleet structure, and a special focus on generating ancillary revenues have created immense opportunity for such carriers to attract passengers in new geographies.
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Emphasis on value creation options for active asset management
The aviation asset class differs significantly from other asset classes such as real estate, shares, or commodities. Due to the highly competitive investment environment which often displays low and even negative interest rates, the aviation asset class has been attracting attention. The effective management of an aircraft portfolio can yield high returns by optimizing the performance of the investment product; it can also mitigate asset-specific risk factors. This, in turn, protects the investors from the risk of global economic fluctuations. Usually, several long-term liabilities are associated with a typical portfolio of insurance products. However, the aviation asset class can reduce the equity set-aside requirement as it is often subjected to diversification; this benefits the asset owner. This tends to encourage potential investors to explore the market.
VAT exemption associated factors to influence aircraft leasing
The implementation of VAT on aircraft leasing in Europe depends on the mode of operation of the operator or the carrier. It also depends on several other indirect factors such as the VAT imposed on jet fuel. In the European region, certain regulations project removal of VAT as applicable on Jet A-1 fuel purchases for both charter (non-scheduled commercial) and private non-revenue business flights. However, the regulation has not been generalized across Europe, that is, the exemption rules vary from country to country.
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This research report includes an in-depth analysis and market shares and sizes of the sub-segments and geography. An analysis of the key companies, including their market shares, business overview, key financials, etc. is provided in this study. This market study also provides a detailed analysis of key drivers, challenges, and opportunities influencing this market.
A more detailed analysis is available in the Technavio market research report titled, ‘Global Commercial Aircraft Leasing Market 2017-2021‘. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Commercial Aircraft Wing Market 2017-2021
- Global Hybrid Aircraft Market 2017-2021
- Global Maritime Patrol Aircraft Market 2017-2021
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