SUPPLY, DEMAND, TIMING AND TECHNOLOGY

Anticipating the need to replace the world’s ageing narrow-body fleet, aircraft lessors went on a shopping spree between 2007 and 2010. Their acquisitions were welcomed by airlines who found themselves restricted by tight access to capital following the 2008 contraction in financial markets. With oil above $100 a barrel and airline balance sheets awash in red ink, narrow-body lease rates were under pressure by 2011-12, a reflection of too much supply and not enough demand. The high price of oil prompted manufacturers to introduce more fuel-friendly, technologically-advanced, high-efficiency