According to Technavio, the global commercial aircraft leasing market will grow at a CAGR of more than 6% from 2018 to 2022. The strong market position of Irish and Chinese lessors is a major factor driving the market’s growth.

Technovio noted that Irish lessors constitute a major portion of the commercial aircraft leasing market. More than 45% of leased aircraft in the market have been leased out by Irish lessors. Several favorable policies of the country have contributed to market growth. For instance, Ireland offers high capital allowance rates and low withholding rates to companies operating within its jurisdiction. This has encouraged international players to conduct core leasing operations from Ireland. Similarly, in China, the country’s leasing industry has been growing rapidly in the past decade owing to regulatory and policy support.

Conversion of aircraft into freighters has been gaining significant momentum in recent times. Several airlines that carry cargo are seeking freighters, in addition to delivery companies like Amazon. For instance, as of November 2017, a freighter-converted Boeing 767 was procured by Canada-based Cargojet. The airline had acquired a 767-300BDSF from Cargo Aircraft Management (CAM), the leasing arm of ATSG. On a similar note, American cargo airline Amerijet has also committed to lease three Freighter-converted 767-300s from ATSG by 2018.

According to a senior analyst at Technavio for commercial aviation research, “The conversions were scheduled to begin in late 2017. The popularity of aircraft conversions, especially as freighters, is a key driver for market growth. More such efforts by lessors to procure these aircraft are expected during the forecast period.”