AVIATION INDUSTRY

Commercial Aircraft Leasing Market "“ Increase In The Number of Air Passengers Coupled With Increase In Volume of Freight

Commercial aircraft leasing refers to the leasing of aircraft operators to increase the capacity and operate the aircraft without bearing the financial burden of buying the aircraft. There are two types of commercial aircraft leasing; short term leasing which is also known as wet leasing and long term leasing which is also known as dry leasing. The aerospace industry either uses short-term leasing or long-term leasing or a combination of both. Commercial aircraft leasing is an alternative to purchasing aircrafts that may provide advantages to companies in terms of cost effectiveness.

The most important reason for leasing out commercial aircrafts is that they are less costly. The global commercial aircraft leasing market is expected to maintain a steady growth rate during the forecast period owing to the rise in low cost aircraft carriers, set up of easy commercial aviation rules, increase in the number of air passengers, and increase in the volume of freight transported from one region to the other among others.

Increase in the number of air passengers coupled with increase in volume of freight, and advancement in aircraft and airport infrastructure in less developed countries are some of the key factors likely to push the growth trajectories of the global commercial aircraft leasing market. Further, leasing provides tax and balance sheet advantages…

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