Aircraft Leasing

Table of Contents

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

• Study Reliability and Reporting Limitations
• Disclaimers
• Data Interpretation & Reporting Level
• Quantitative Techniques & Analytics
• Product Definition and Scope of Study

II. EXECUTIVE SUMMARY

1. Industry Overview & Outlook

• Aircraft Leasing Outlook - Closely Tied to Airline Industry' s Fortunes
• Leasing Aircraft -A Viable Alternative to Airlines Woes
• Global Financial Crisis and Aircraft Leasing
• Sale-and-Lease-Back Deals: Order of the Day
• Aircraft Financing - A Cause of Concern
• Airline Industry Trouble Spills Over to Manufacturers

2. Leased Asset Portfolio - Current Value and

• Commercial Jets Account for the Largest Type
• Europe and US Dominates, Asia-Pacific Exhibits Fastest Growth

3. Trends & Issues in Aircraft Leasing Industry

• Limited Credit and High Fuel Prices Soften Lease Rates
• Leasing Companies to Suffer from Falling Aircraft Values
• Declining Growth in Traffic Prompts Capacity Rationalization
• China to Emerge as the Fastest Growing Aviation Market in the Next Two Decades

4. Aircraft Leasing Industry in the Recent Past

5. Competitive Landscape

• Table 1: Leading Aircraft Lessors Worldwide by Leased Aircraft Asset Portfolio Value (2006 and 2007) - ILFC, GECAS, CIT Group, RBS Aviation Capital, Babcock & Brown, AWAS, Aviation Capital Group, Boeing Capital, AerCap, and MacQuarie Airfinance (includes corresponding Graph/Chart)
• ILFC' s Fate Raises Industry Concerns
• Table 2: Leading Narrow-Body Aircraft Lessors Worldwide by Leased Asset Portfolio Value (2007) - ILFC, GECAS, RBS Aviation Capital, Babcock & Brown, CIT Group, Aviation Capital Group, Boeing Capital, AWAS, AerCap, and MacQuarie Aircraft Leasing (includes corresponding Graph/Chart)
• Table 3: Leading Wide-Body Aircraft Lessors Worldwide by Leased Asset Portfolio Value (2007)- ILFC, GECAS, AWAS, CIT Group, Allco Equipment Leasing, Babcock& Brown, BOC Aviation, Aircastle Investment, Boeing Capital, and Oasis International Leasing (includes corresponding Graph/Chart)
• Table 4: Leading Regional Aircraft Lessors Worldwide by Leased Asset Portfolio Value (2007)-GECAS, BAE Systems Asset Management, RBS Aviation Capital, CIT Group, Bombardier Capital, AerCap, Allco Equipment Leasing, BCI Aircraft Leasing, GOAL, and Pembroke Group (includes corresponding Graph/Chart)
• Table 5: Leased Airbus Narrow Body Aircraft Portfolio Value by Type (2007) - A318, A319, A320, A321 (includes corresponding Graph/Chart)
• Table 6: Leased Airbus Wide-Body Aircraft Portfolio Value by Type (2007) - A300, A310, A330, A340 (includes corresponding Graph/Chart)
• Table 7: Leased Boeing Narrow Body Aircraft Portfolio Value by Type (2007) -737NG, 737CFMI, 757, 717, 727, and 737JT8D (includes corresponding Graph/Chart)
• Table 8: Leased Boeing Wide Body Aircraft Portfolio Value by Type (2007) -777, 767, and 747 (includes corresponding Graph/Chart)

6. Business Jets Market

• Fractional Ownership - An Emerging Business Option

7. Regional Jets Market

• Leasing - Not a Mainstay in Regional Jets Market

8. Aircraft Leasing - A Review

• Aircraft Leasing
• Aircraft Owned or Leased
• Key Advantages of Aircraft Leasing
• Aircraft Leasing Services
• Structure of Aircraft Leasing
• Process of Aircraft Leasing
• Fundamental Strategies Adhered by Lessors
• Classification of Aircraft Leasing
• Classification based on Ownership
• Finance Lease
• Operating Lease
• A Comparison between Operating Lease and Financial Lease
• Criteria for Determining the Type of Lease
• Accounting Treatment for Capital and Operating Lease
• Classification based on Services
• Wet leasing:
• Dry Leasing:
• Slot Swaps
• Risks and Challenges
• Key Determinants of the Airline Leasing Industry
• Fuel Costs and Lease Rates - Key Factors Affecting Aircraft Leasing Industry
• Interest Rates
• Fuel Costs
• Age of an Aircraft
• Aircraft Valuation
• Price Dynamics Vis-A-Vis Discounts: Supply Side Economics

9. Global Aviation Industry - A Perspective

• Global Economic Environment and its Impact on Aviation Industry
• An Insight into the Current Global Aircraft Demand
• Economic Development Influences Aviation Demand
• Developing Economies Hold the Key to Future Aviation Market Growth
• Urbanization Fuels Aviation Sector Growth
• Price - The Key Factor Influencing Air Travel Demand
• Table 9: Global Aviation Market (2007): Percentage Breakdown of Airline Traffic for Global Network, Major Network, Small Network, LCC, Charter and Regional & Affiliates (includes corresponding Graph/Chart)
• Table 10: Global Airlines Market by Geographic Region - Percentage Share Breakdown for US, Canada, Japan, Europe, Asia-Pacific, Middle East & Africa, and Latin American Markets in terms of Passenger Traffic for the Years 2010 & 2015 (includes corresponding Graph/Chart)
• Emerging Regions to Gain Increased Share of Global Air Traffic
• Liberalization Wave Promises New Horizons for Air Travel Growth
• Factors Influencing Civil Aerospace Industry
• Strategic Trends: 2007-2008
• Current Scenario Looks Uncertain
• Uncertainty in Global Economy
• Emerging Economies Propel Market Expansion
• The Asian Influence
• Commercial Aircraft
• Table 11: Global Large Commercial Aircraft Market (2009-2011): Deliveries by Company for Boeing and Airbus (includes corresponding Graph/Chart)

10. Recent Industry Activity

• Developments at the Lessor-Lessee Level
• Hawaiian Airlines Enters New Lease Contracts with AWAS
• Kingfisher Airlines and Jet Airways Plan to Return 14 Leased Planes
• Airstream Leases Two Used Regional jets to Athens Airways
• Wataniya Airways Inks Leasing Agreement with ILFC for A320 Aircraft
• BCI and China Airlines Sign Sale-and-Lease-back Agreement
• Turkish Airlines Leases Airplanes from Two Leasing Companies
• BCI Extends Lease of Two A340-300 Airbus Aircraft with Air Namibia
• Wataniya Airways Leases Airbus A320 Aircraft from AerCap
• Alafco Leases Airbus Aircraft to Saudi Arabian Airlines
• CAB Approves Lease Agreement between Tiger Airways and SAA
• Global Air to Lease 8 Aircraft
• BCI Novates Operating Leases for Boeing Aircraft to Aloha Air Cargo
• ALAFCO Inks Lease Agreement with Saudi Arabian Airlines
• BOC Aviation Enters into a Purchase and Leaseback Agreement with Air Canada
• BOC Aviation Enters into Agreements for Leasing Two New A319-100 Aircraft
• China Southern Airlines Annuls Lease Back of an Airbus A321-200
• Bangkok Airways Enters Lease Contract with Aircraft International Renting
• Airstream Leases Two Boeing 737-800 Airplanes for Hapag- Lloyd
• Skywest Airlines Signs Contract with Capital Lease Aviation
• AVIV Signs MOU with GECAS to Sell ARJ21 Regional Jets
• China Southern Foregoes Purchase Rights of Five A321-200s to Lessors
• BOC Aviation Delivers First BOEING 737-800 to Shenzhen Airlines
• BOC Aviation Signs Agreements with Qantas Airways
• Air India to Lease 10 to 15 Aircraft
• TAP Enters Lease Agreement with AerVenture
• Jet Airways Signs Agreement to Lease Five Boeing 737s
• ICBC Signs Aircraft Leasing Agreement with Hainan Airline
• BOC Aviation Signs Lease Agreements with Asian Airlines
• Boeing Delivers Next-Generation Boeing 737-800 to Okay Airways
• Skybus Enters into an Accord with BOC
• BAE Systems Extends the Avro RJ85 Lease Agreement with Blue 1
• British Airways Obtains Debt Finance from Chinese Bank
• AerVenture Inks Agreements to Lease Six A320s to Aeroflot
• Etihad Signs Contract with CIT Aerospace for Two Airbus Aircraft
• GTK Rossiya Enters into Financial Leasing Contract with Ilyushin for An-148s
• Indian to Provide Aircraft on Wet Lease to India Post
• Jet Airways to Receive Two Boeing 737-800s on Lease from BOC Aviation
• Okay Airways Signs Aircraft Lease Agreement with AVIC Leasing
• WestJet Concludes Aircraft Leasing Contract with BOC Aviation
• Jet Airways Inks Agreements for 13 new ATR 72-500s
• AirAsia to Terminate Lease Agreements with Penerbangan Malaysia
• Advent Enters New Lease Agreement with Avation PLC
• Genesis signs Purchase-and-Leaseback Agreement with Deccan Aviation
• Estonian Airlines and Saab Aircraft Leasing Sign Lease Contract
• Aeroflot and UAC Sign Memo for leasing Il-96 aircraft
• Aeroflot Signs LOI with AerCap to Lease Airbus A330 Aircraft
• Virgin Blue Purchases Six Boeing 777s
• Belavia Obtains First CRJ-100LR Under Leasing Contract with DSF
• Dragon Aviation Leases Airbus A320 to JuneYao Airlines
• BAE Systems Leases Jetstream 41 to Eastern Skyjets
• CIT Aerospace to Lease B737-800 to OASC
• Hawaiian Concludes Aircraft Acquisition, Enters into Lease Agreement with AWAS
• AeroCentury Acquires and Leases Saab 340B Aircraft to Colgan Air
• BAE Enters into an Aircraft Lease Agreement with Transwede
• Air India to Wet Lease Five Airplanes
• Saab Aircraft to Lease Out 25 Advanced Saab 340Bplus Aircraft
• Avion to Acquire Minority Interest in Advent Air and Lease Airbus A320 Aircraft
• SpiceJet and Babcock & Brown Sign Sales and Lease Agreement
• Indian to Lease 12 Planes for Network Expansion
• AirAsia Inks Agreement to Lease Planes to Fly Asian Xpress
• Indian to Lease 16 Airbuses for Indian Aviation Market
• SALE Inks Lease Agreements with WestJet
• Regional Express and SAAB Sign Lease Agreement
• SALE Signs Lease Agreements with Shandong Airlines
• GATX Air Acquires Two A320s From Tiger Airways
• Beriev Taganrog Inks Aircraft Leasing Agreement With Portugal
• Ilyushin Finance Company To Supply Jets To Syria' s Arab Airlines
• AeroCentury Leases Saab 340A Aircraft to RegionsAir
• SALE Orders for 10 Additional Boeing 737 Aircraft
• SALE Leases Out the Maiden Version of Airbus A320
• Adam Air to Acquire 30 Airbus A320 Aircraft
• IA Receives Offers for Lease of Airbus to Run on European and Australian Routes
• ANA to Expand its Fleet by Five A320 Aircraft
• AeroCentury Re-Leases Two Dash-8-300s to LIAT
• BAE Signs Contracts with Three Large Airlines
• WestJet Leases Jets from ILFC
• Eurofly Inks an Agreement with Airbus
• AeroCentury Inks Agreement for Aircraft Lease with VLM Airlines
• BCI Aircraft Acquires 3 Boeing 767-300ERs and Leases Out to TUI AG
• Developments at the Manufacturer-Lessor Level
• BOC Aviation Places Order for 20 A320 aircraft
• CIT Aerospace Places Repeat Order for Ten Airbus A320
• AerCap Signs a Contract with Airbus
• DAE Capital Places Order for 100 Airbus Aircraft
• Genesis Lease Limited Acquires Boeing 767-300ER Aircraft
• Biman Bangladesh Airlines Plans to Acquire Two Boeing 737-800s Aircraft
• Boeing Supplies 737-900ER Airplane to GE Commercial
• Boeing Delivers Next-Generation 737-800 to ILFC
• Boeing Supplies first 737-900ERs to Europe
• AWAS Completes Purchase of Six A330 Aircraft
• B&B Air Acquires Five Aircraft from Boeing and Airbus
• CIT Inks a Contract for A320 Family Aircraft and A330-200s
• Boeing Delivers 747-400 Freighter to GECAS
• BOC Aviation Signs Contract with Airbus for Five A330-200F Cargo Aircraft
• AWAS Inks Contract for Airbus A320 Family Aircraft
• Vietnam Places Order for A350 XWB and A321 Aircraft
• AWAS Places Orders for Next-Generation 737-800
• Vietnam and Boeing to Ink Purchase Agreements for 12 Boeing 787-8
• DAE Capital Inks Agreements with Airbus and Boeing
• ILFC Revises A350 order to A350 XWBs
• Aviation Capital Inks Agreement for Supply for A320 Family Aircraft
• CIT Inks Contract for Supply of A350 XWB and A320 Family Aircraft
• Intrepid Enters into a Purchase and Lease Agreement with Airbus
• ALAFCO Enters into Financing and Leasing Agreement with Airbus
• BCI Acquires Boeing 737-300QC Aircraft
• Boeing Obtains Order for 787-9 Dreamliner from LCAL
• Airbus and Intrepid Leasing Sign LOI for 20 Cargo Aircraft
• SALE Signs a US$2.8 Billion Agreement for 40 Aircraft
• ALAFCO Signs Firm Contract for 6 Airbus A320 Aircraft
• Boeing Delivers First 737-800 Aircraft to SALE
• CIT Signs Contract with Airbus for Supply of Aircraft
• ILFC Signs Supply Contract with Airbus for A320 Aircraft
• SALE Places an Order for 10 Boeing Aircraft
• Dubai Aerospace Plans Purchase Of 50 Aircraft
• Bombardier and Caribbean Aircraft Leasing Sign Contract for Q300 Aircraft
• SALE to Acquire 40 Boeing aircraft
• Other developments
• Jazeera Airways Establishes Aircraft Leasing Company
• Austrian Hypo to Launch Aircraft Leasing Services
• Aergo Capital Acquires Aviation Leasing Business in South Africa
• Aldus Commences Business Operations
• Vinacapital Purchases 10% Stake in Vietnam Aircraft Leasing
• SEC Approves Incorporation of Aircraft Leasing Firm
• Vietnam Enters Plane Leasing Business
• DAE Forays into Aircraft Leasing Business
• Xojet Receives Investment Worth $143 million
• Four Chinese Banks to Establish Aircraft Leasing Companies
• Hainan Airlines to Establish an Aircraft Leasing Company
• Terra Firma Acquires Pegasus Aviation Finance
• Al Salam Bank Completes Equity Stake Acquisition in Boeing 777
• Global Aircraft Solutions to Acquire Stakes in Global Aircraft Leasing
• Macquarie Aircraft Acquires Stakes in KG Aircraft Leasing
• Terra Firma Acquires Pegasus Aviation Finance
• UIB to Establish Aircraft Leasing Company in Bahrain
• HNA Group Plans to Begin Aircraft Leasing Business
• AVIC I to Form a Leasing Unit
• Aircastle to Acquire 38 Aircraft from US Investment Group
• GATX Divests Aircraft Joint Ventures to MALL
• RBS and Bank of China to Tie-up for Aircraft Leasing
• Bank of China Acquires SALE
• Shanghai Electric to Start Aircraft Leasing unit
• MKA Inks a Share Exchange Agreement with Sancon Recycling
• Bravia Capital Partners And ILFS form Joint Venture
• Terra Firma Completes Acquisition of AWAS
• Oasis International Acquires Jet Fleet from Airbus
• Financial Telecom Limited Changes Name to MKA Capital
• BVI to Acquire New Bombardier Jet
• Fintel Takes Over Control of MK Aviation
• Jet Airways Wet Leases Aircraft to Gulf Air
• GE Commercial Finance Acquires CIT Aircraft Business
• Air Arabia Announces Aircraft Acquisition Plans
• GE and US Airways enter Aircraft Lease and Finance Agreement
• WestLB Acquires Stake in SALE

11. Focus on Major Global Players

• International Lease Finance Corporation (USA)
• GE Commercial Aviation Service (USA)
• CIT Aerospace (USA)
• RBS Aviation Capital (Ireland)
• Babcock & Brown Aircraft Management LLC (Australia)
• Ansett Worldwide Aviation Services - AWAS (Ireland)
• Aviation Capital Group Corp (USA)
• Boeing Capital Corporation (USA)
• AerCap Group (Netherlands)
• MacQuarie Aircraft Leasing Services (USA)
• BOC Aviation Pte Ltd (Singapore)
• ALAFCO Aviation Lease and Finance Company KSCC (Kuwait)
• BAE Systems Plc (UK)
• BCI Aircraft Leasing, Inc (USA)
• SAAB Aircraft Leasing (USA)

12. Global Market Perspective

• Table 12: World Recent Past, Current & Future Analysis for Aircraft Leasing by Geographic Region - North America, Europe, Asia-Pacific, Latin America and Rest of World Independently Analyzed in terms of Leased Asset Portfolio Value in US$ Billion for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 13: World 10-year Perspective for Aircraft Leasing by Geographic Region - North America, Europe, Asia-Pacific, Latin America and Rest of World for 2006, 2009, and 2015 (includes corresponding Graph/Chart)
• Table 14: World Recent Past, Current & Future Analysis for Commercial Jet Leasing by Geographic Region - North America, Europe, Asia-Pacific, Latin America and Rest of World Independently Analyzed in terms of Leased Asset Portfolio Value in US$ Billion for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 15: World 10-year perspective for Commercial Aircraft Leasing by Geographic Region - North America, Europe, Asia-Pacific, Latin America and Rest of World for 2006, 2009, and 2015 (includes corresponding Graph/Chart)
• Table 16: World Recent Past, Current & Future Analysis for Regional Jet Leasing by Geographic Region - North America, Europe, Asia-Pacific, Latin America and Rest of World Independently Analyzed with Leased Asset Portfolio in US$ Billion for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 17: World 10-year Perspective for Regional Jet Leasing by Geographic Region - North America, Europe, Asia-Pacific, Latin America and Rest of World for 2006, 2009, and 2015 (includes corresponding Graph/Chart)
• Table 18: World Recent Past, Current & Future Analysis for Business Jet Leasing by Geographic Region - North America, Europe, Asia-Pacific, Latin America and Rest of World Independently Analyzed with Leased Asset Portfolio in US$ Billion for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 19: World 10-year perspective for Business Jet Leasing by Geographic Region - North America, Europe, Asia-Pacific, Latin America and Rest of World for 2006, 2009, and 2015 (includes corresponding Graph/Chart)

III. MARKET

1. North America

• A. Market Analysis
  • Current and Future Analysis
  • Outlook
  • Slowdown in US Economy
  • US Regional Jets Market Facing Turbulent Times
  • Regulatory Setup in US Aviation Industry
  • Strategic Corporate Developments
  • Select Key Players
• B. Market Analytics
  • Table 20: North American Recent Past, Current & Future Analysis for Aircraft Leasing Market by Segment- Commercial Jets, Regional Jets, and Business Jets- Markets Independently Analyzed with Leased Asset Portfolio in US$ Billion for Years 2006 through 2015 (includes corresponding Graph/Chart)
  • Table 21: North American 10-year perspective for Aircraft Leasing Market by Segment- Commercial Jets, Regional Jets, and Business Jets- Markets for 2006, 2009, and 2015 (includes corresponding Graph/Chart)

2. Europe

• A. Market Analysis
  • Current and Future Analysis
  • Outlook
  • Aircraft Leasing Higher in Europe Compared to North America
  • Ireland - A hub for Global Leasing Industry
  • Strategic Corporate Developments
  • Select Key Players
• B. Market Analytics
  • Table 22: European Recent Past, Current & Future Analysis for Aircraft Leasing by Type- Commercial Jets, Regional Jets, and Business Jets- Independently Analyzed in terms of Leased Asset Portfolio in US$ Billion for Years 2006 through 2015 (includes corresponding Graph/Chart)
  • Table 23: European 10-year Perspective for Aircraft Leasing Portfolio by Type- Commercial Jets, Regional Jets and Business Jets for 2006, 2009, and 2015 (includes corresponding Graph/Chart)

3. Asia-Pacific

• A. Market Analysis
  • Indo-China Open Sky Policy Propels Aviation Industry
  • INDIA
  • Aviation Industry- Regulatory Setup in India
  • Declining Lease Rentals Offer no Breather to the Bleeding Airlines
  • Indian Carriers Seek Capacity Rationalization
  • Market for Business Jets on the Rise
  • CHINA
  • Slowdown in Chinese Airline Market Raises Concerns
  • Chinese Banks Foray into the Global Aircraft Financing Market
  • Easing Regulations Drive Domestic Players to Foray into Aircraft Leasing
  • Strategic Corporate Developments
  • Select Key Players
• B. Market Analytics
  • Table 24: Asia-Pacific Recent Past, Current & Future Analysis for Aircraft Leasing by Type- Commercial Jets, Regional Jets, and Business Jets- Independently Analyzed in terms of Leased Asset Portfolio in US$ Billion for Years 2006 through 2015 (includes corresponding Graph/Chart)
  • Table 25: Asia-Pacific 10-year Perspective for Aircraft Leasing Portfolio by Type- Commercial Jets, Regional Jets, and Business Jets for 2006, 2009, and 2015 (includes corresponding Graph/Chart)

4. Latin America

• A. Market Analysis
  • Current and Future Analysis
• B. Market Analytics
  • Table 26: Latin American Recent Past, Current & Future Analysis for Aircraft Leasing by Type- Commercial Jets, Regional Jets, and Business Jets- Independently Analyzed in terms of Leased Asset Portfolio in US$ Billion for Years 2006 through 2015 (includes corresponding Graph/Chart)
  • Table 27: Latin American 10-year Perspective for Aircraft Leasing Portfolio by Type- Commercial Jets, Regional Jets, and Business Jets for 2006, 2009, and 2015 (includes correspondingGraph/Chart)

5. Rest of World

• A. Market Analysis
  • Current and Future Analysis
  • Outlook
  • Aviation Industry in Middle East - Flourishing During the Global Slump
  • Aircraft Leasing Industry in Middle East
  • Industry Structure
  • New Airport to Surge Leasing Activities in Middle EastStrategic
  • Strategic Corporate Developments
  • Select Key Players
• B. Market Analytics
  • Table 28: Rest of World (*) Recent Past, Current & Future Analysis for Aircraft Leasing by Type- Commercial Jets, Regional Jets, and Business Jets- Independently Analyzed in terms of Leased Asset Portfolio in US$ Billion for Years 2006 through 2015 (includes corresponding Graph/Chart)
  • Table 29: Rest of World (*) 10-year Perspective for Aircraft Leasing Portfolio by Type- Commercial Jets, Regional Jets, and Business Jets for 2006, 2009, and 2015 (includes corresponding Graph/Chart)

COMPETITIVE LANDSCAPE