Page 322 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΜΑΙΟΣ 2024

News from the aviation world Edited by: Manos Charitos
AVIATION

INDUSTRY

MORE AIRCRAFTS ARE LEASED THAN
OWNED BY AIRLINES GLOBALLY
Airlines have a choice between buying their air-
craft or leasing them. Leasing has emerged as the
preferred option, rising from roughly 10% of the
total fleet in the 1970s to 58% at the end of 2023,
according to IATA. This most spectacular increase
occurred between 1980 and 2010, and the share
first crossed the 50% mark in 2004. In recent
years, it has stabilised around the current 60%
level, suggesting that this might be “the optimal”
split between leasing and owning in the industry.
IATA says that leasing first took off in North
America, where airlines were deregulated in 1978
(along with trucking, buses, and railroads). The
subsequent increase in air traffic demand helped
push the share of leased aircraft up from 20% to
50% over the decade that followed.
However, since then, the regions of Europe, Latin
America, and Asia have taken to leasing to such
an extent that their share of leased aircraft is
now close to 70% of the total fleet, leaving North
America far behind at 40% - down from 50% in
2010 and the lowest among regions.
A couple of reasons can explain the reason behind
the lower share of leased aeroplanes in North
America. Firstly, North American airlines have
better access to capital markets and relatively
cheap alternative financing options like corpo-
rate debt. Secondly, large legacy carriers, which
historically hold the majority of the market share,
directly own a sizeable portion of their aircraft

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