A regular update where our in house team of aviation experts and ISTAT certified appraisers use our data to analyse values, market movements, and notable aviation news.
This week, Darren Biddlecombe delves into 2023 leases and trends within which AviationValues has captured and recorded in our leases database.
The Year That Was…
An inconsistent year with one clear message of an increase of 53% in December versus January. This statistic is interconnected and quite normal in most years with the typical hike in deliveries for both Boeing (67) and Airbus (97) in December.
*Only includes leases captured.
New or Old Technology
A semi-even split on the technology front. This relates to December deliveries. When splitting the chart into new technology and old technology it is old tech with the high numbers in December. With 13 lease starts, and new tech just behind with 11 lease starts.
*Only includes transactions captured.
An unsurprising chart for the top ranking types. The A320ceo and neo, the 737-800, and the A321neo are in the higher numbers of lease starts. Likely the production challenges have pushed the MAX 8 down below the 777-300ER and the A330-300. The remainder is an interesting mix of types. The surprise is that the A321ceo is so low. Is this due to high demand and short supply?
*Only includes transactions captured.
Below is a split of the Top 10 Lessor Countries by technology that has started leases in 2023. Showing a good split of technologies across most areas with only Israel, China, and South Korea leasing 100% of old technology.
*Only includes leases captured.
** country is defined as the lessor’s country.
From Technology to Age
As previously done with Transactions, it seems relevant to investigate the ages of the aircraft that are being leased. New technology heads it up with numerous zero age aircraft being leased on their first terms. Old technology tends to range from 7 through to 14, and 15 years old as they enter subsequent lease terms whether extensions or new.
In Summary
Leasing of aircraft and especially the new technology seems to align with the deliveries of new aircraft. The split of leased aircraft is relatively even between new and old technologies. Old technology aircraft of ages 7 through to 25 are entering into new leases. Is this relative to the supply chain issues, production rates, and restrictions of late? Nevertheless, the technology may be old, but they aren't out, they remain prevalent in the leasing world.
Data as of March 2024
Disclaimer: The purpose of this blog is to provide general information and not to provide advice or guidance in relation to particular circumstances. Readers should not make decisions in reliance on any statement or opinion contained in this blog.
Want to know more about how our data can help you assess the market?