Losses to the airlines industry can sometimes mean gains to the aircraft leasing industry, as airlines seek to hold up their balance sheets by resorting to leasing an aircraft. This is particularly reflected in the current scenario, where aircraft leasing companies are continuing to make profits, despite a slowdown in the global airlines. The market is witnessing continued leasing deals being signed between the leasing companies and airlines worldwide. Dearth in financial resources to fund internal purchases of aircraft may force many airlines to increasingly rely on aircraft leasing companies.

Lease rates began declining even for most favored aircraft, affecting revenues for leasing companies. Further, airline closures and capacity rationalization among airlines may force leasing firms to postpone or cancel orders and focus on re-placing existing fleet. However, the market is expected to witness a surge in airlines' reliance on sale-and-lease-back agreements for financing aircraft purchases, keeping the prospects of leasing companies buoyant.
 

TABLE OF CONTENTS 

AIRCRAFT LEASING		BMR-8008
                                
		CONTENTS



  1. METHODOLOGY                                                           1
      Study Reliability and Reporting Limmitations                         1
      Disclaimers                                                          2
      Quantitative Techniques & Reporting Level                            3

  2. INDUSTRY OVERVIEW & OUTLOOK                                           4
      Aircraft Leasing Outlook - Closely Tied to  Airline Industry’s
       Fortunes                                                            4
      Leasing Aircraft - A Viable Alternative to  Airlines Woes            4
      Global Financial Crisis and Aircraft  Leasing                        5
      Sale-and-Lease-Back Deals: Order  of the Day                         6
      Aircraft Financing - A Cause of Concern                              6
       Manufacturers Step in to Finance  Aircraft                          7
      Airline Industry Trouble Spills Over to  Manufacturers               7
      Outlook                                                              8

  3. TRENDS & ISSUES IN AIRCRAFT LEASING  INDUSTRY                         8
      Limited Credit and High Fuel Prices Soften  Lease Rates              8
      Leasing Companies to Suffer from Falling  Aircraft Values            9
      Declining Growth in Traffic Prompts Capacity  Rationalization        9
      China to Emerge as the Fastest Growing  Aviation Market in the
       Next Two  Decades                                                   9

  4. COMPETITIVE LANDSCAPE                                                 10
      ILFC’s Fate Raises Industry Concerns                                 11

  5. BUSINESS JETS MARKET                                                  16
      Fractional Ownership - An Emerging  Business Option                  16

  6. REGIONAL JETS MARKET                                                  17
      Leasing - Not a Mainstay in Regional  Jets Market                    18

  7. AIRCRAFT LEASING - MARKET  SEGMENTS                                   19
      Commercial Jets                                                      19
      Regional Jets                                                        19
      Business Jets                                                        19

  8. CORPORATE DEVELOPMENTS                                                19
      Developments at the Lessor-Lessee Level                              19
       Airstream Leases Two Used Regional  Jets to Athens Airways          19
       Wataniya Airways Inks Leasing Agreement  with ILFC for A320
        Aircraft                                                           19
       BCI and China Airlines Sign Sale-and- Lease-back Agreement          20
       BCI Extends Lease of Two A340-300  Airbus Aircraft with Air
        Namibia                                                            20
       Alafco Leases Airbus Aircraft to Saudi  Arabian Airlines            20
       Global Air to Lease 8 Aircraft                                      21
       BCI Novates Operating Leases for Boeing  Aircraft to Aloha
        Air Cargo                                                          21
       ALAFCO Inks Lease Agreement with  Saudi Arabian Airlines            21
       BOC Aviation Enters into a Purchase  and Leaseback Agreement
        with Air  Canada                                                   21
       BOC Aviation Enters into Agreements for  Leasing Two New
        A319-100 Aircraft                                                  21
       China Southern Airlines Annuls Lease  Back of an Airbus A321-200    22
       BOC Aviation Delivers First BOEING  737-800 to Shenzhen Airlines    22
       BOC Aviation Signs Agreements with  Qantas Airways                  22
       Jet Airways Signs Agreement to Lease  Five Boeing 737s              22
       BOC Aviation Signs Lease Agreements  with Asian Airlines            23
       Boeing Delivers Next-Generation Boeing  737-800 to Okay Airways     23
       Skybus Enters into an Accord with BOC                               23
       BAE Systems Extends the Avro RJ85  Lease Agreement with Blue 1      23
       AerVenture Inks Agreements to Lease Six  A320s to Aeroflot          24
       Etihad Signs Contract with CIT Aerospace  for Two Airbus
        Aircraft                                                           24
       Jet Airways to Receive Two Boeing  737-800s on Lease from BOC
        Aviation                                                           24
       WestJet Concludes Aircraft Leasing  Contract with BOC Aviation      24
       Jet Airways Inks Agreements for 13 new  ATR 72-500s                 25
       Genesis Signs Purchase-and-Leaseback  Agreement with Deccan
        Aviation                                                           25
       Estonian Airlines and Saab Aircraft  Leasing Sign Lease Contract    25
       Virgin Blue Purchases Six Boeing 777s                               25
       Dragon Aviation Leases Airbus A320 to  JuneYao Airlines             25
       BAE Systems Leases Jetstream 41 to  Eastern Skyjets                 26
      Developments at the Manufacturer-Lessor  Level                       26
       BOC Aviation Places Order for 20 A320  aircraft                     26
       CIT Aerospace Places Repeat Order  for Ten Airbus A320              26
       AerCap Signs a Contract with Airbus                                 27
       DAE Capital Places Order for 100 Airbus  Aircraft                   27
       Genesis Lease Limited Acquires Boeing  767-300ER Aircraft           27
       Biman Bangladesh Airlines Plans to  Acquire Two Boeing 737-
        800s Aircraft                                                      27
       Boeing Supplies 737-900ER Airplane to  GE Commercial                28
       Boeing Delivers Next-Generation 737-800  to ILFC                    28
       Boeing Supplies first 737-900ERs to  Europe                         28
       AWAS Completes Purchase of Six A330  Aircraft                       28
       B&B Air Acquires Five Aircraft from  Boeing and Airbus              29
       CIT Inks a Contract for A320 Family  Aircraft and A330-200s         29
       Boeing Delivers 747-400 Freighter to  GECAS                         29
       BOC Aviation Signs Contract with Airbus  for Five A330-200F
        Cargo Aircraft                                                     29
       AWAS Inks Contract for Airbus A320  Family Aircraft                 29
       Vietnam Places Order for A350 XWB  and A321 Aircraft                30
       AWAS Places Orders for Next-Generation  737-800                     30
       Vietnam and Boeing to Ink Purchase  Agreements for 12 Boeing
        787-8                                                              30
       DAE Capital Inks Agreements with Airbus  and Boeing                 31
       Aviation Capital Inks Agreement for  Supply for A320 Family
        Aircraft                                                           31
       CIT Inks Contract for Supply of A350  XWB and A320 Family
        Aircraft                                                           31
       ALAFCO Enters into Financing and  Leasing Agreement with Airbus     32
       BCI Acquires Boeing 737-300QC Aircraft                              32
       Boeing Obtains Order for 787-9  Dreamliner from LCAL                32
       Airbus and Intrepid Leasing Sign LOI  for 20 Cargo Aircraft         32
       SALE Signs a US$2.8 Billion Agreement  for 40 Aircraft              32
      Other Developments                                                   33
       Jazeera Airways Establishes Aircraft  Leasing Company               33
       Austrian Hypo Launches Aircraft Leasing  Services                   33
       SEC Approves Incorporation of Aircraft  Leasing Firm                33
       Vietnam Enters Plane Leasing Business                               34
       Hainan Airlines to Establish an Aircraft  Leasing Company           34
       Al Salam Bank Completes Equity Stake  Acquisition in Boeing 777     34
       Global Aircraft Solutions to Acquire  Stakes in Global
        Aircraft Leasing                                                   35
       MacQuarie Aircraft Acquires Stakes in  KG Aircraft Leasing          35
       Terra Firma Acquires Pegasus Aviation  Finance                      35
       GATX Divests Aircraft Joint Ventures to  MALL                       35
       RBS and Bank of China to Tie-up for  Aircraft Leasing               35

  9. MAJOR PLAYERS                                                         36
      International Lease Finance Corporation  (USA)                       36
      GE Commercial Aviation Service (USA)                                 36
      CIT Aerospace (USA)                                                  36
      RBS Aviation Capital (Ireland)                                       37
      Babcock & Brown Aircraft Management LLC  (Australia)                 37
      Ansett Worldwide Aviation Services (Ireland)                         37
      Aviation Capital Group Corp. (USA)                                   37
      Boeing Capital Corporation (USA)                                     38
      AerCap Group (Netherlands)                                           38
      MacQuarie Aircraft Leasing Services (USA)                            38
      BOC Aviation Pte Ltd (Singapore)                                     38
      ALAFCO Aviation Lease and Finance  Company KSCC (Kuwait)             39
      BAE Systems Plc (UK)                                                 39
      BCI Aircraft Leasing, Inc. (USA)                                     39
      SAAB Aircraft Leasing (USA)                                          39

  10. GLOBAL MARKET ANALYTICS                                              40

  11. NORTH AMERICA                                                        44
      Slowdown in US Economy                                               44
      US Regional Jets Market Face  Turbulent Times                        44
      Regulatory Setup in US Aviation Industry                             45

  12. EUROPE                                                               46
      Aircraft Leasing Higher in Europe  Compared to North America         47
      Ireland - A hub for Global Leasing  Industry                         47

  13. ASIA-PACIFIC                                                         48
      Indo-China Open Sky Policy Propels  Aviation Industry                49
       India                                                               49
        Aviation Industry- Regulatory Setup in  India                      49
        Declining Lease Rentals Offer no  Breather to the Bleeding
         Airlines                                                          50
        Indian Carriers Seek Capacity  Rationalization                     50
        Market for Business Jets on the Rise                               50
       China                                                               51
        Slowdown in Chinese Airline Market  Raises Concerns                51
        Chinese Banks Foray into the Global  Aircraft Financing Market     51
        Easing Regulations Drive Domestic  Players to Foray into
         Aircraft Leasing                                                  52

  14. LATIN AMERICA                                                        54

  15. REST OF WORLD                                                        55
      Aviation Industry in Middle East - Flourishing  During the
       Global Slump                                                        55
      Aircraft Leasing Industry in Middle East                             56
       Industry Structure                                                  56
      New Airport to Surge Leasing Activities in  Middle East              56


 EXHIBITS

      Table 1: Leading Aircraft Lessors Worldwide  by Leased
      Aircraft Asset Portfolio  Value - 2007

      Table 2: Leading Narrow-Body Aircraft  Lessors Worldwide by
      Leased Asset  Portfolio Value - 2007

      Table 3: Leading Wide-Body Aircraft Lessors Worldwide by
      Leased Asset Portfolio  Value - 2007

      Table 4: Leading Regional Aircraft Lessors Worldwide by Leased
      Asset Portfolio  Value - 2007

      Table 5: Leased Airbus Narrow Body Aircraft Portfolio Value by
      Type - 2007

      Table 6: Leased Airbus Wide-Body Aircraft Portfolio Value by
      Type - 2007

      Table 7: Leased Boeing Narrow Body Aircraft Portfolio Value by
      Type - 2007

      Table 8: Leased Boeing Wide Body Aircraft Portfolio Value by
      Type -2007

      Table 9: Global Aircraft Leasing Market by Region for the
      Period 2007-2015 (In Terms  of Leased Asset Portfolio Value in
      US$ Billion)

      Table 10: Percentage Breakdown of Global Aircraft Leasing
      Market by Region for the Years 2009 & 2012

      Table 11: Global Commercial Jet Leasing Market by Region for
      the Period 2007-2015  (In Terms of Leased Asset Portfolio
      Value in US$ Billion)

      Table 12: Percentage Breakdown of Global Commercial Jet
      Leasing Market by Region  for the Years 2009 & 2012

      Table 13: Global Regional Jet Leasing  Market by Region for
      the Period 2007-2015  (In Terms of Leased Asset Portfolio
      Value in US$ Billion)

      Table 14: Percentage Breakdown of Global Regional Jet Leasing
      Market by Region  for the Years 2009 & 2012

      Table 15: Global Business Jet Leasing  Market by Region for
      the Period 2007-2015  (In Terms of Leased Asset Portfolio
      Value  in US$ Billion)

      Table 16: Percentage Breakdown of Global Business Jet Leasing
      Market by Region  for the Years 2009 & 2012

      Table 17: Aircraft Leasing Market by Segment in North America:
      2007-2015 (In Terms of Leased Asset Portfolio Value in US$
      Billion)

      Table 18: Percentage Breakdown of Aircraft Leasing Market by
      Segment in North  America for the Years 2009 & 2012

      Table 19: Aircraft Leasing Market by Segment in Europe:
      2007-2015 (In Terms of Leased Asset Portfolio Value in US$
      Billion)

      Table 20: Percentage Breakdown of Aircraft Leasing Market by
      Segment in Europe for  the Years 2009 & 2012

      Table 21: Aircraft Leasing Market by Segment in Asia-Pacific:
      2007-2015 (In Terms of Leased Asset Portfolio Value in US$
      Billion)

      Table 22: Percentage Breakdown of Aircraft Leasing Market by
      Segment in Asia-Pacific  for the Years 2009 & 2012

      Table 23: Aircraft Leasing Market by Segment in Latin America:
      2007-2015 (In Terms of Leased Asset Portfolio Value in US$
      Billion)

      Table 24: Percentage Breakdown of Aircraft Leasing Market by
      Segment in Latin America for the Years 2009 & 2012

      Table 25: Aircraft Leasing Market by Segment in Rest of World:
      2007-2015 (In Terms of Leased Asset Portfolio Value in US$
      Billion)

      Table 26: Percentage Breakdown of Aircraft Leasing Market by
      Segment in Rest of World for the Years 2009 & 2012


 COMPANIES PROFILED

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