According to a report on the global commercial aircraft leasing market published by London-based technology and advisory company Technavio the global commercial aircraft leasing market is anticipated to grow at a steady rate and will post a CAGR of more than 6% during the forecast period 2017-2021. The growth in low-cost carriers (LCC) traffic will drive the growth prospects for the global commercial aircraft leasing market until the end of 2021.

This market research study identifies AerCap, BBAM, CIT Commercial Air, GECAS and SMBC Aviation Capital as the leading players in the global commercial aircraft leasing market. Other prominent vendors in the market include Air Lease, Aviation Capital, Avolon, BOC Aviation and ICBC Leasing.

Some of the major factors responsible for the growing popularity of such carriers to attract passengers in new geographical regions include fast turnaround time, simplified fleet structure, and a special focus on generating ancillary revenues. Also, the cost-effectiveness of the LCC services and no-frills services provided by lessors have gained traction in the market. Furthermore, with the growing adoption of LCC model and the expanding network, the aircraft fleets operated by airlines is also increasing, which, in turn, will fuel the growth of the commercial aircraft leasing market.

The implementation of VAT on aircraft leases will influence the aircraft leasing and will drive the growth prospects for the global commercial aircraft leasing market for the next four years. In some parts of the geographical locations, certain regulations ensure removal of VAT on fuel purchases that will boost the usage of aircraft on the lease. Also, some of the regions such as Channel Islands of Jersey and Guernsey provide complete VAT exemption.

The global commercial aircraft leasing market is highly competitive and diversified due to the presence of a large number of regional and international vendors across the globe. Some of the major factors responsible for the growth of well-established vendors include direct aircraft procurement market, government initiatives, and focus on the worldwide availability of leasing services. Furthermore, several vendors are increasingly focusing on distinguishing their service offerings through a clear and unique value proposition to retain and augment their market shares.