Shannon, Ireland-based Engine Lease Finance (ELFC) is predicting a sharp increase in sales as air travel recovers. Chief Executive Jon Sharp says the company will have $1 billion worth of engines on its books by 2005. "Asian airlines suffered most from SARS, but they have proven to be resilient. All our new equipment is going straight out to the Far East. Most of our growth comes from there," he adds.
Europe could be a profitable market for sale and leaseback deals, as struggling airlines run into difficulties paying for engines themselves, Sharp says.He adds: "There are still a lot of small under-capitalised airlines in Europe which would seek a deal with ELFC in order to conserve cash." ELFC has 148 engines, worth $650 million, in its portfolio.
Short-term leases in particular will increase dramatically when traffic starts to recover, Sharp says
Source: Flight International
