As researchers predict the global aircraft leasing market’s value will almost double by 2029, Air Charter Services explains why.
Aircraft leasing market set to soar
According to Polaris Market Research, the global aircraft leasing market’s value is set to rise to $295.18 billion (USD) by 2029, almost doubling the sector’s current value. Air Charter Service’s aircraft leasing team agrees the uptick is likely to continue amidst increased demand for commercial flights and enduring operational disruptions.
Why is the forecast for aircraft leasing so good?
The Covid-19 pandemic left much of the aviation market in decline due to low demand for commercial air travel. Bucking this trend, the aircraft leasing sector has played a prime role in the industry’s survival and recovery, as airlines choose more cost-effective short-term solutions to keep up with erratic demand.
ACS’s Director of Aircraft Leasing, Scott Collier, expects this summer to be the busiest period for leasing since before the pandemic hit. “The continuing relaxation of global restrictions will boost optimism and open up the passenger market ahead of the summer season,” he says.
However, consumers are still hesitant due to the uncertainty caused by some countries’ lingering restrictions. Travel trends for early 2022 suggest staycations are still popular, with one study revealing in January that 13% of Brits were planning domestic winter getaways compared to just 9% aiming to go abroad.
“With many airlines having either parked a large part of their fleets or deferred aircraft deliveries until the market picks up, this leaves operators in a dilemma over whether to carry out maintenance checks and crew training for their excess capacity in the hope of a busy summer season, or consider the more versatile alternative of wet or damp leasing options (ACMI) to meet increased demand,” adds Scott.
“ACMI leasing is a great way for airlines to secure the supplemental seasonal capacity they need in order to maintain market share. Aircraft, crew, maintenance and insurance are typically included in these leases, meaning airlines can operate without investing heavily or committing to the longer-term obligations associated with dry leasing or buying aircraft.
“By offering much-needed flexibility in terms of aircraft, operation periods and flight routes, ACMI leasing gives airlines a level of certainty during these unprecedented times by preserving service continuity and improving fleet efficiency – allowing them to plan their schedules for the summer and beyond with more confidence.”
Why ACS thrived during the pandemic
While many companies have struggled to source aircraft for lease during the pandemic, ACS has flourished – and there’s a reason for this.
“The strong supplier relationships we’ve built over the past 30 years have allowed us to adapt our leasing offering. We’ve also harnessed the local expertise of our in-house award-winning cargo teams based across 28 regional offices around the world to offer innovative cargo leasing solutions, such as converting passenger aircraft (auxiliary freighters) by removing the seats from the cabin. This resourcefulness has won us several long-term ACMI lease contracts.
“Additionally, as commercial airlines struggled to maintain regular service throughout 2021, we were able to keep our customers in the air when they needed us with last-minute short term lease options. It’s this range of leasing services, coupled with exceptional results, that stands us in good stead as the market continues its recovery.”
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