Air­craft leas­ing ready for take off?

Finweek English Edition - - INSIDE - BY GLENDA WIL­LIAMS

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

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