Nytt yrke: REPO men i luftfarten - Curt Lewis

 

Aircraft repossessions could be on way as aviation crisis deepens

Four in 10 leased aircraft grounded as the pandemic continues to hit air travel

The (Irish) Republic is a key centre for aviation finance, with about 60 per cent of all leased aircraft worldwide, worth around €100 billion, held here. Photograph: iStock

Aircraft lessors could be forced to repossess planes as the Covid-19 crisis pushes airlines into bankruptcy or insolvency, industry analysts warn in a new report.

The Republic is a key centre for aviation finance, with about 60 per cent of all leased aircraft worldwide, worth about €100 billion, held here, while 14 of the top 15 companies in the business are based here.

A report by Alton Aviation Consultancy, which has its headquarters in New York, estimates that about four out of every 10 leased aircraft are grounded as the pandemic continues to hit air travel.

At the same time, it warns that about 900 aircraft are leased by airlines with enough cash to last two months or less and that are not government owned, leading the consultants to class them as high-risk.

Pressure on values and limited scope to find replacement customers mean that lessors are reluctant to repossess aircraft when clients have difficulty meeting rent or payment obligations.