In full flight: Soaring demand for leased aircraft will boost industry revenue

The Commercial Aircraft Leasing industry has experienced robust growth over the past two decades. Leasing airplanes was an uncommon practice until the 1990s. Since then, it has gained traction among carriers due to the benefits it offers: limited purchase costs and flexibility in fleet composition. Leasing also reduces the risks of a bad investment, like when an aircraft proves unpopular. Over the five years to 2017, IBISWorld estimates that industry revenue has increased. Going forward, leasing will remain popular; however, a growing supply of leased airplanes, meant to match demand, will likely soften leasing rates and limit further profit growth. Acquisitions will remain popular for consolidating market share and for negotiating favorable contracts with upstream plane manufacturers...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 12-17
4.0%
Forecast Growth 17-22
Profit
Employment
2,650
Businesses
428
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Industry Threats & Opportunities

  • Large companies are acquiring smaller or under-performing companies to expand market share
  • In the short run, even high leasing rates compare favorably to purchase costs
  • More commercial airlines will find the advantages of leasing, propelling industry growth
  • Industry Report - Industry SWOT Analysis Chapter

    The Commercial Aircraft Leasing industry is in the growth stage of its life cycle. IBISWorld expects industry value added, which measures contribution to economic output, to increase an annualized 3.0% in the 10 years to 2022. This outpaces forecast GDP growth over the period, standing at an annualized 2.0%.The industry’s contribution to the economy is growing, primarily due to the soaring popularity of leasing, as opposed to buying, commercial aircraft. Carriers are increasingly finding value in leasing aircraft for a few years and then returning the jet to industry operators (the lessors), because this lowers upfront payment costs, frees up capital for other operations and enables the carrier to maintain flexibility in fleet composition. Rel...purchase to read more.

    Additional Insights for the Commercial Aircraft Leasing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Aircraft Leasing Industry are

  • Ability to alter goods and services produced in favor of market conditions
  • Ability to accommodate environmental requirements
  • Prompt delivery to market
  • IBISWorld analysts also discuss how external factors such as Yield on 10-year Treasury note and Domestic trips by US residents in the Commercial Aircraft Leasing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What is the Commercial Aircraft Leasing Industry?

    This industry leases commercial aircraft to scheduled airlines and to other commercial carriers. The carrier (lessee) pays the industry operator (lessor) for use of the aircraft over a given time period, typically a few years. This industry does not lease noncommercial aircraft, such as military helicopters or recreational jets.

    Industry Products
  • Operating lease
  • Capital lease
  • Industry Activities
  • Providing capital leases
  • Providing operating leases
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Yield on 10-year Treasury note
  • Domestic trips by US residents
  • Corporate profit
  • Oil and natural gas price index

  • Current Performance
  • The logic of leasing
  • Growing profit
  • Mergers and acquisitions
  • Chart: Revenue Growth

  • Industry Outlook
  • Strong demand
  • Industry landscape
  • Table: Commercial Aircraft Leasing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Aircraft Leasing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • International Airlines
  • Domestic Airlines
  • Charter Flights
  • Couriers & Local Delivery Services

  • Key Selling Industries
  • Aircraft Maintenance, Repair & Overhaul
  • Aircraft, Engine & Parts Manufacturing
  • Aircraft, Marine & Railroad Transportation Equipment Wholesaling
  • Gasoline & Petroleum Wholesaling

  • Products & Services
  • Operating lease
  • Capital lease
  • Chart: Commercial Aircraft Leasing Industry Products and Services Segmentation

  • Demand Determinants
  • Passenger travel
  • Cargo transportation
  • Technology

  • Major Markets
  • Narrow body
  • Wide body
  • Regional Jets
  • Logistic providers
  • Chart: Major Market Segmentation for the Commercial Aircraft Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation
  • Wages
  • Rent, utilities and marketing
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Aircraft Leasing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Aircraft Leasing Industry

  • Industry Globalization
    GE Capital Aviation ServicesCIT Aerospace LeasingAerCap
  • Table: GE Capital Aviation Services - financial performance
  • Table: CIT Aerospace Leasing - financial performance
  • Table: AerCap - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Aircraft Leasing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Commercial Aircraft Leasing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Demand from domestic airlines (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Charter Flight
  • A type of commercial flight that operates without a regular schedule or route.
  • Commercial Flight
  • Flight operated for money; used to transport passengers and cargo.
  • Lease
  • An arrangement by which the user pays the owner of an asset for use of that asset; similar to rental but typically longer in duration.
  • Lessee
  • The user of a leased asset.
  • Lessor
  • The owner of a leased asset.
  • Why buy this report?

    The Commercial Aircraft Leasing industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Commercial Aircraft Leasing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commercial Aircraft Leasing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commercial Aircraft Leasing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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