OAG’s recent webinar, 'Discuss: Aircraft Lease Rates and Airfares Have Never Been Higher' on how the aircraft leasing sector is responding to the challenges it currently faces.Manufacturers are already behind in their current orders due to parts shortages and lack of skilled labour, as the travel sector recovers from the havoc caused by the Covid-19 pandemic.
Problems across the supply chain were initially caused by the pandemic when restrictions and border closures disrupted shipments of raw materials and led to layoffs of pilots, flight attendants, baggage handlers and aircraft mechanics. The war in Ukraine also disrupted oil supplies and triggered higher costs for goods and services worldwide.
This has been compounded by Pratt & Whitney engine problems forcing over 400 A320 aircraft (per Mark Dunnachie, SVP Commercial ACIA Aero Leasing) to be grounded to have the engines disassembled and inspected and the industry faced further disruption last month when 171 B737-9 MAX aircraft were grounded due to a faulty exit door plug.
There is some debate as to whether discretionary travel is softening. Nevertheless, it is evident post pandemic that spend on travel continues to be prioritised across all age groups and air travel is of course an important enabler of a range of things from economic growth, trade and enabling families and friends to remain connected, wherever they are in the world. Globally, the markets seeing growth have large younger populations, growing disposable incomes and consequently growing potential demand.
Against this backdrop, industry experts at OAG’s webinar explained that airlines are increasingly looking at the leasing market to keep their fleets flying.In the meantime, there was never a more critical time for effective aircraft fleet planning to meet these challenges.
