Lessors race back with mega-orders

Lessors at this week's Dubai Airshow have been digging deep into their pockets once again with millions of dollars of aircraft orders. AerCap, formerly known as Debis AirFinance, has signed a letter of intent for 70 Airbus A320s, ILFC has committed to 12 A350s and 20 Boeing 787s, and newcomer Low-Cost Aircraft Leasing has ordered six 787s.

The spending spree began earlier this year at the Le Bourget show, where ILFC began ordering Boeing aircraft again with 777 and 737 commitments while GECAS went for 737s and Embraer 190s and pencilled in some Airbus A350s. After a hiatus in spending, Singapore Aircraft Leasing Enterprise came back to the table in the first quarter of 2005 with a 20-strong 737 order.

Bolstered by orders from lessors and from low-cost carriers, 2005 promises to be a bumper sales year for both manufacturers: an amazing feat in some respects when you consider the poor financial performance of the airline industry as a whole. Look out for accelerating retirements for old, and for not so old, aircraft models over the next few years.