tures are being created,” he said.
Stiff competition from lessors and attractive financing available to airlines has spiked the popularity of one
leasing instrument particularly.
“Sale leasebacks have become an attractive source of
funding from an airline’s perspective, yet, from a lessor’s
point of view, it gets the airlines on the hook early into a
transaction,” Taylor said, pointing out that leasing has so
far accounted for half of the deliveries of Airbus aircraft
Cargo & LCC growth
Another area for optimism is in the freighter market.
Cargo aircraft being ordered by lessors run the gamut
from dedicated Boeing 747 freighters to passenger-to-freighter converted 747-400s, 767 and 777s. Boeing
also is touting its 737NG converted freighter program,
the first of which has been delivered.
Older Airbus A330s are also becoming attractive
passenger-to-freighter candidates among air freighters
and the leasing community. At its Dresden, Germany,
facility, Airbus has converted and placed A330 freighters
GE Capital Aviation Services (GECAS), a prominent
lessor of air cargo aircraft, announced cargo conversions contracts with Boeing during the Farnborough Air
Show in July. The lessor’s fleet of commercial airplanes
(owned, managed and on order) stands at 1,550, of
which 90 are freighters. They range from 737 classics to
“We are seeing pickup in the freight market,” GE-
CAS CCO Declan Kelly said. “As a result, we’ve invested
a lot in cargo conversions of narrowbody aircraft.”
The resurgence of the air cargo market is driven pri-
marily by rapid growth of e-commerce. Online shop-
ping is filling the cargo holds of freighters, Kelly said.
Another growth business for lessors is the LCC market, even as more legacy airlines adapt their business
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