World Aircraft Leasing Industry - Investment Analysis and Growth Opportunities

This publication has been discontinued on July 19, 2011.

Introduction

Abstract

Frost & Sullivans Aerospace Financial Benchmarking and Analysis (FBA) service presents a broad financial outline of the aerospace industry, highlighting major market and financial trends in key growth segments. It provides a comprehensive financial analysis of the leading aerospace firms to support the investment and financial analysis needs of decision makers in the aerospace arena. The current study within the service focuses on the world aircraft leasing and financing industry, including the following three key growth segments: business jets, regional jets, and commercial aircraft.

Growth Driven By the Improving Health of the Airline Industry

The aircraft leasing market is largely influenced by the success or failure of the airline industry, which is highly cyclical, sensitive to slight economic changes, and highly competitive. Since 9/11, lease margins have generally declined due to surplus aircraft, declining demand for air travel, airline bankruptcies, repossessions of aircraft, declining airline revenue yields, and worldwide health concerns.

However, since the second half of 2003, the fundamental evaluation measurements for airline industry and cargo traffic, such as available seat miles (ASMs) and revenue passenger miles (RPMs), have consistently improved despite rising fuel concerns. These improvements are primarily fueled by the increase in demand for air travel.

Majority of Financing Completed Through Operating Leases

Most of the financing in todays aircraft market is completed through either operating or financing leases. Frost & Sullivan estimates that majority of the leases provided by independent leasing companies are operating in nature. At the end of 2004, for example, ILFC maintained 667 aircraft on operating leases and only 9 on financial leases. However, the leasing subsidiaries of OEM companies, such as BAE Systems and Cesna Finance, have more exposure to financial leases.

Table of Contents

• 1. Executive Summary
  • 1. Overview
    • 1. Introduction
    • 2. Financial Benchmarking Analysis
• 2. Introduction and Methodology
  • 1. Introduction and Methodology
    • 1. Introduction
    • 2. Research Methodology
• 3. Industry Highlights and Segmentation
  • 1. Industry Highlights
    • 1. Introduction
    • 2. Factors Affecting the Industry
    • 3. Factors Affecting the Industry Continued
  • 2. Competitive Analysis and Growth Monitor
    • 1. Total Market Size and Forecast
    • 2. Competition Structure
    • 3. Aircraft Leasing Growth Monitor
  • 3. Regional Analysis
    • 1. North America
    • 2. Europe
    • 3. Asia Pacific
    • 4. Africa and Middle East
    • 5. Latin America
• 4. Financial Benchmarking Analysis
  • 1. Aircraft Leasing Industry
    • 1. Aircraft Leasing Universe
    • 2. Financial Analysis
    • 3. Profiles of Select Market Participants
    • 4. Profiles of Select Market Participant Continued
  • 2. Airline Industry
    • 1. Airline Universe
    • 2. Financial Analysis
• 5. Valuation
  • 1. Airline Companies
    • 1. Historical Stock Performance
    • 2. Valuation Multiples
  • 2. Mergers and Acquisitions
    • 1. Recent Deals
  • 3. Investment Opportunity Scorecards
    • 1. Aircraft Leasing Industry Investment Opportunity Scorecard
    • 2. Aircraft Leasing Companies Investment Opportunity Scorecard
• 6. DSD Tables
  • 1. DSD Tables
    • 1. World Commercial Aircraft in Service
    • 2. Major World Carriers

List Of Figures

• Aircraft Leasing Industry: Comparison of Operating Lease and Financing Lease, 2004
• Commercial Aircraft Market: Total Boeing Aircraft Orders and Deliveries and Boeing Aircraft
• Aircraft Leasing Industry: Market Drivers Ranked in Order of Impact (World), 2005-2008
• Aircraft Leasing Industry: Market Restraints Ranked in Order of Impact (World), 2005-2008
• Aircraft Leasing Industry: Total Market Forecast by Type of Aircraft (World), 2004-2008
• Frost & Sullivan Aircraft Leasing Universe (World), 2004
• Aircraft Leasing Industry: Growth Monitor (World), 2004
• Aircraft Leasing Industry: Market Shares of Aircraft with Airlines, Leased Aircraft Portfolio and Commercial MRO Market (North America), 2004
• Aircraft Leasing Industry: Market Forecast by Type of Aircraft (North America), 2004-2008
• Aircraft Leasing Industry: Market Shares of Aircraft with Airlines, Leased Aircraft Portfolio and Commercial MRO Market (Europe), 2004
• Aircraft Leasing Industry: Market Forecast by Type of Aircraft (Europe), 2004-2008
• Airline Industry: Industry Highlights (India), 2004
• Aircraft Leasing Industry: Market Share of Aircraft with Airlines, Leased Aircraft Portfolio and Commercial MRO Market (Asia Pacific), 2004
• Aircraft Leasing Industry: Market Forecast by Type of Aircraft (Asia Pacific), 2004-2008
• Aircraft Leasing Industry: Market Shares of Aircraft with Airlines, Leased Aircraft Portfolio and Commercial MRO Market (Africa and Middle East), 2004
• Aircraft Leasing Industry: Market Forecast by Type of Aircraft (Africa and Middle East), 2004-2008
• Aircraft Leasing Industry: Market Share of Aircraft with Airlines, Leased Aircraft Portfolio and Commercial MRO Market (Latin America), 2004
• Aircraft Leasing Industry: Market Forecast by Type of Aircraft (Latin America), 2004-2008
• Frost & Sullivan Aircraft Leasing Universe (World), 2004
• Aircraft Leasing Industry: Asset Portfolio of Select Companies (World), 2000-2004
• Aircraft Leasing Industry: Revenues of Select Companies (World), 2000-2004
• Aircraft Leasing Industry: Exposure to Bankrupt Airlines (World), 2004
• Aircraft Leasing Industry: Asset Portfolio of GECAS (World), 2001-2005
• Aircraft Leasing Industry: Asset Portfolio of ILFC (World), 2001-2005
• Aircraft Leasing Industry: Asset Portfolio of CIT (World), 2001-2005
• Aircraft Leasing Industry: Asset Portfolio of Boeing Capital (World), 2001-2005
• Frost & Sullivan Airline Universe (World), 2004
• Exchange Rates Used to Convert non-USD numbers to USD numbers (World), 1997-2004
• Airline Industry: Year-over-Year Total Revenue Growth Across the Different Companies and Airline Groups (World), 1997-2004
• Airline Industry: Year-over-Year Passenger Revenue Growth Across the Different Companies and Airline Groups (World), 1997-2004
• Airline Industry: Year-over-Year Cargo Revenue Growth Across the Different Companies and Airline Groups (World), 1997-2004
• Airline Industry: Operating Margin Across the Different Companies and Airline Groups (World), 1997-2004
• Airline Industry: Revenue Per Employee Across the Different Companies and Airline Groups (World), 1997-2004
• Airline Industry: Debt / Equity Ratio Across the Different Companies and Airline Groups (World), 1997-2004
• Airline Industry: Debt / Total Assets Across the Different Companies and Airline Groups (World), 1997-2004
• Airline Industry: Year-over-Year change in Aircraft Lease Rentals Across the Different Companies and Airline Groups (World), 1997-2004
• Aircraft Leasing Industry: Industry Investment Scorecard (World), 2004
• Aircraft Leasing Industry: Company Investment Scorecard (World), 2004

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