For the first time in years, operating lessors are placing major aircraft orders again without advance lease commitments and amid warnings that history may repeat itself.
General Electric Capital Aviation Services (Gecas) has ordered 107 Boeing aircraft, and is reportedly close to making a large Airbus order. Singapore Aircraft Leasing Enterprise recently ordered six B777s and will probably place another order within the month (see opposite), while GATX recently formed a venture that ordered nine A321s.
But none of these orders are committed to lessees and lessors appear unconcerned. Demand is surging. ILFC claims it already has customers for all the aircraft it will receive in the next two years and Gecas has identified about 100 airlines as potential lessees. According to one lessor, 'People are saying: "I'll take a 737-400. I really need a 737-300, but I can't find any." Lease rates are up dramatically and people are just not able to find the aircraft.'
The larger orders also have built-in flexibility. If a lessor had trouble finding lessees, it could adjust deliveries. Gecas has 1-2 years to locate customers for most of the aircraft in its recent order.
And no one foresees an early return to the days when speculative orders by lessors created backlogs, forcing airlines into leasing to fill their requirements and prompting calls for manufacturers to curb those type of orders.
But one lessor warns against getting carried away: 'There's no problem yet but six months ago no one [foresaw] . . . all these orders. Do we learn from our mistakes? Probably not.'
David Knibb
Source: Airline Business
