Chinese lessors under pressure to sell older jets in their portfolios in order to show trading activity are facing a tough remarketing process, a source in the market suggests.
The challenge is particularly acute for smaller players, adds the source.
Having often paid too much for the aircraft initially, Chinese lessors are essentially having to accept impairments on sales, the source says.
Remarketing becomes even more difficult when the airline leasing the jet – often at a high lease rate – is deemed risky.
In order to be able to accept that risk, potential buyers are increasingly asking the sellers to underwrite the lease rates in case of default.
Chinese lessors are open to this idea as it often guarantees a better selling price, FlightGlobal understands.
Source: Cirium Dashboard
