ASEAN KEY DESTINATIONS
Aircraft leasing rises in Asia
Last year, that number was 6,180, up by 7.35 percent from 2008 and accounting for over 31 percent of the world's active fleet.
A lack of available capital for procuring new aircraft and falling interest rates are triggering growth in the world aircraft leasing market, FS pointed out in its "World Aircraft Leasing Market" report.
On average, Europe and the Asia-Pacific rely more on leasing companies than do their North American rivals.
One reason for this is the smaller number of very large market participants in Europe and the Asia-Pacific.
The aircraft leasing industry in North America has matured, growing at a modest rate of 4.3 percent annually from 2004-08, said Frost&Sullivan analyst R. Madusudanan.
The Asia-Pacific airline industry has particularly benefited from the open skies policies adopted by China and India in 2003 and 2005, respectively.
Those two countries present a tremendous opportunity for the airline industry. From 2003-05, five new airlines were registered in India alone.
The civil aviation industry is witnessing a golden era in the Asia-Pacific, with lenient regulations, the emergence of low-cost carriers and a general economic boom led by the offshoring of services and manufacturing industries.
In Thailand, Thai Airways International's drive to rejuvenate its fleet, now with an average age of about 12 years, will also contribute to growth in the regional leasing industry, said the Malaysian-born analyst.
With the introduction of the new Boeing 787 and Airbus A350 in the near future, it is very likely that the aircraft leasing market will grow in line with the upward slope of the economy, both for the Asia-Pacific in general and Southeast Asia in particular.
Aircraft leasing is highly dependent on the fortunes of the airline industry, which is cyclical, sensitive to economic trends and highly competitive.
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