Open skies set to fuel Mid East aircraft leasing sector
Aircraft leasing in the Middle East is set to take off, driven by forecasted traffic growth and liberalization of the region's air travel sector, including the furthering of open skies policies, a conference in Dubai heard today.
Speaking at the Third Annual Middle East Aviation Finance Conference, Commercial Director of Oasis International Leasing Company, Erik Dahmen said leasing will have a vital role to play in the future financing of the region's airline fleets.
“Although the number of aircraft on operating leases lags behind the global market, the growth potential is enormous. Boeing has estimated the Middle East will need 640 aircraft worth around $63 billion within the next 20 years,” said Dahmen.
“Leasing will enable airlines to manage constrained capital budgets by relieving them of the huge financial burden associated with owning aircraft, added Dahmen.” Oasis Leasing believes the regional market has largely recovered from the repercussions of the events of September 11 last year. Meanwhile, industry analysts predict, more liberal, open skies policies will increase aircraft purchases.
The worldwide leasing industry has increased from $40 billion to $500 billion in 20 years, demonstrating a six percent annual growth, according to Dahmen. Today almost one third of leasing transactions are in the transport sector.
“In the Middle East asset leasing remains an under utilized finance option, accounting for just 10 percent of the worldwide market,” Dahmen told the conference, held at Le Meridien Dubai Hotel.
Oasis Leasing has announced three aircraft transactions in recent weeks. In partnership with Compass Capital Corporation in the US, Oasis Leasing has financed the acquisition of an MD82 aircraft on lease to Continental Airlines. It has also signed contracts, with Air Canada, for the purchase and long-term leaseback of two Bombardier CRJ-100ER aircraft and the acquisition of a new Airbus 321 passenger jet, on lease to Canada's flagship airline for 10 years. — (menareport.com)
© 2002 Mena Report (www.menareport.com)