FLY Leasing believes the worse is over for the Airbus A319 market and lease rates as well as values should recover during the next 12 months.
Commenting on the health of the leasing market during the company's second quarter results, BBAM's president and chief executive Steve Zissis said: "The A319 and A320 lease rates are slowly starting to recover and we believed the A319 has reached the bottom."
Zissis says the recent Allegiant's A319 deal was "smart", but noted that the US carrier is not the only one moving into A319 operations. "You have a start-up airline in Africa going with A319s and a South American operator switching to the A319."
Separately, FLY is repossessing two A320s from a OLT Express Poland and says it will be in the marketplace in the second half of the year. Zissis believes that demand for these aircraft will be "somewhat limited" as the aircraft are more than 15 years of age. "We will probably get them placed at relatively the same rates as we have them at the moment."