Aircraft leasing ready for take off?
What do you do if you are an investor l ooking for decent ret urns? After al l , many markets are looking decidedly l i mp a nd oppor t unit ie s ar e not abundant. You can literally look to the skies where the aircraft leasing market is taking off.
But why t he sudden i nterest i n aircraft as a means of yielding investors decent returns? It boils down to the fi g ures. According to t he World Bank, the world economy is growing at 3.3%. But aviation is forecast to around the globe, says Humphries. And if you think of Ryanair founder Tony Ryan, essentially the inventor of modern-day aircraft leasing, this better explains Ireland’s domination of the leasing management sector. By comparison, Investec manages over $3bn worth of aircraft assets globally on behalf of third-party shareholders who then lease these aircraft out.
Airlines often l ease aircraft as it relieves t he f i nancial burden of purchasing t hese capital-i ntensive beasts, yet provides the capacity that might be required by the airline. And