China-based aircraft leasing companies are a key driver of the global aviation finance market, according to FlightGlobal’s Top 50 Lessor ranking.
The annual FlightGlobal Top 50 Lessor Ranking shows that the total fleet value of the nine China-based commercial aircraft lessors it includes exceeded US$40bn for the first time in 2017 – an increase in their aircraft fleet values of around US$5bn or 15% over 2016.
The total fleet size of the nine lessors in 2017 was 1090 aircraft - a 13% increase from 2016.
According to FlightGlobal, China-based lessors such as BoCom Leasing have climbed up the ranking in the past year, moving up five places, and above longer-established companies such as Aircastle Advisor, Nordic Aviation Capital and Macquarie AirFinance, based on fleet value.
FlightGlobal is today marking the success of the nine China-based leasing companies within its Top 50 Lessors Awards at a briefing in Shanghai. These include (in descending order of ranking): ICBC Leasing, CDB Aviation Lease Finance, BoCom Leasing, China Aircraft Leasing, CCB Financial leasing, CMB Financial Leasing, SPDB Financial Leasing, Changjiang Leasing and AVIC International Leasing.
Rob Morris, Head of Consultancy at FlightGlobal’s consultancy arm, Flight Ascend Consultancy, said: “The aviation industry continues to watch the rise of China-based lessors and the capital they deploy with interest. Not only are these companies making a growing contribution to their region’s economy, but they are increasingly shaping the dynamics of the aircraft leasing sector too, and we see this trend set to continue in the coming years.”
The ranking also shows that Asia-Pacific lessors as a whole have taken a bigger share of the leasing sector accounting for 19% of all managed aircraft and with 22% of outstanding aircraft orders at the end of 2017.
Ten years ago, Asia-Pacific accounted for just 5% of managed fleet in comparison to the more dominant lessor regions of Europe (25%) and North America (69%), with the Middle East (1%) being the smallest. By 2017, Asia’s Pacific’s share had quadrupled to almost 20% of managed fleet - which is around half of Europe’s (39%) managed fleet and over half of North America’s (37%).
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About the awards
The Top 50 lessors are ranked by fleet value in 2017. Results are published annually in a special report in Flight Airline Business and available online through FlightGlobal’s dashboard service. The nine Chinese lessors that were awarded with one of these FlightGlobal Top 50 Lessor Awards were defined by where they are headquartered/based according to our portfolio tracker and not based on ownership. Chinese-owned lessors that are based outside of China were not part of these awards, for example Avolon and BOC Aviation.
FlightGlobal, incorporating FlightStats and Diio, helps aviation and travel related businesses drive growth and efficiency, assess risk, and improve customer satisfaction. The company has a unique combination of databases, technology and expertise, which power data solutions, APIs, online tools, industry insight and expert advice. Across the globe FlightGlobal’s solutions help reduce passenger delays and improve traveler experiences, validate and inform long term planning and minimize exposure and risk. The company also helps organizations connect by providing routes to market through insight channels and face to face events. FlightGlobal is a strategic partner of IATA, the association of world airlines and is recognized as the Aircraft Appraiser of the Year for six out of the eight years of the Aviation 100 Award.