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Leasing market past its peak - but still robust Aug/Sep 2008 Download PDF

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As Aviation Strategy predicted last year (see Aviation Strategy, October 2007), the leasing industry is past its peak, but — as GECAS puts it — "the glass is still half full".

With rising fuel prices and many airlines (particularly in the US) cutting back capacity, at first sight the macro outlook for the leasing industry appears dire. Yet these factors are countered by the lack of spare production slots at Boeing and Airbus until the end of 2011 and a continuing shortage of in–demand aircraft types — which means that lease rates on many aircraft types (e.g. five–year old A320s and 737–800s) are still rising in 2008 compared with 2007.

Most of the lessor fleet is leased out through this year and next, and — crucially — a large chunk of older, less fuel–efficient aircraft will have to be retired by airlines over the next few years. For example, according to GECAS, of the 1,000 MD–80s/90s in the current world fleet, at least one–third is more than 20 years old. Similarly, around 25% of the 1,700 737 classics in operation are also more than 20 years old, while Babcock & Brown estimates that around 50% of all passenger aircraft in North America and Europe are more than 10 years old.

Practically, the robustness of individual lessors depends largely on how exposed they are to the weaker markets, and specifically North American airlines, but most lessors are too experienced to be overexposed on any one market.

Aviation Strategy’s annual survey of the leasing industry (see table, pages 10–11) shows that the overall fleet has grown from 6,356 as of a year ago to 6,881 today (although the figures are not strictly comparable as we have included a handful of smaller lessors in the 2008 table that were not included in the 2007 table). More tellingly, lessors have 1,277 outstanding orders today, compared with 844 12 months ago (see Aviation Strategy, October 2007).

The "Big Two" — GECAS and ILFC — have a combined fleet of 2,830 aircraft, but no longer dominate the outstanding order book. They have 195 and 157 aircraft on order respectively, but have now been overtaken (in terms of outstanding orders) by the Dubai Aerospace Enterprise, which over the last year has ordered a staggering 200 aircraft, split evenly between Airbus and Boeing. While it is way too early to start talking about a Big Three (as DAE has just 49 aircraft in its portfolio at the moment, and will be more than happy to become one of the second–tier lessors in the short–term) it will be interesting to see if the aggressive growth strategy of DAE will be maintained over the next few years, because if so, it will surely take business away from the Big Two in the buoyant Middle Eastern leasing market.


GECAS is still the world’s largest lessor, owning 1,475 aircraft (worth around $44bn) and managing another 300 units for others. In 2007 GECAS signed contracts for 208 leases, comprised of 90 aircraft from the existing fleet, extensions on 34 leases already leased to customers, and 84 aircraft yet to be delivered from Airbus or Boeing. But unlike the 150+ increase in the fleet over the 2006 to mid–2007 period, in the 12 months to the summer of 2008 GECAS has increased its fleet by just 25 aircraft, which clearly indicates its cautious view of the market.

GECAS’s fleet is placed with 230 customers in 70 countries, and risk is relatively evenly spread, with a third of the portfolio being placed with clients in the US, 20% in the Asia/Pacific region, 20% in Europe and 14% in the Middle East and Russia. Part of General Electric, GECAS (which has 490 employees) has a vast sales network, with 27 offices around the world. Of these, 20 offices have been opened since 2001 and GECAS is putting particular emphasis on expanding into "emerging markets", with particular interest in China, India, the Middle East, Latin America and Russia.

GECAS’s fleet is split between narrowbodies (55%), widebodies (22%), cargo aircraft (7%) and RJs (17%). The average age of the fleet at mid–2008 was six years, and GECAS says that 83% of its narrowbody fleet is in "attractive" A320 family and 737NG aircraft,while 90% of its widebodies are in "high demand" 767s, 777s and A330s.

In 2007 GECAS’s revenue rose by 10.2% to $4.6bn, with a "segment profit" of $1.2bn, 4.2% up on the 2006 result. However, in the first half of 2008 revenues remained flat, at $2.3bn, with segment profit falling 2% to $639m.

GECAS’s current order book stands at 129 Boeing aircraft (104 737s and 25 777s) and 66 Airbus aircraft (12 A319s and 54 A320s). In January GECAS ordered 15 777s (both passenger and cargo variants) and 24 737–800s, all for delivery by 2010, the latter of which signifies that all the 737NGs ordered back in 2006 have been successfully placed, and that more 737 capacity is needed.

Of the total order book, GECAS has 75 aircraft scheduled for 2008 delivery, all of which have already been placed with customers, as are all orders through to 2010. Additionally, all leases on roll–off in 2008 have been replaced with clients, as have 70% of 2009 roll–off, so overall GECAS is well prepared for a more pronounced downturn in the leasing market over the next couple of years, if it occurs.


Based in California, ILFC is a subsidiary of US financial services giant AIG, and its portfolio currently stands at 1,055 aircraft (compared with 1,007 a year ago), of which 947 are fully owned by the lessor.

In the first six months of 2008 ILFC saw revenue increase by 12.5% to $2.5bn, with net profits leaping by 48.7% to $364m in January- June 2008. ILFC is partly exposed to troubled US airlines, and ATA, Eos and Aloha Airlines returned 16 aircraft to ILFC in the first half of 2008 — although all those aircraft have subsequently been placed with other clients. In total these airlines cost ILFC more than $22m in "rental adjustments" and lost revenue in the January–June 2008 period.

However, approximately 90% of ILFC’s aircraft is placed with airlines outside of the US, and ILFC’s strategy is to "maximise lease placements in regions where the airline industry is performing better on a relative scale — such as in the Middle East, Russia and Eastern Europe, and parts of Asia, Western Europe, and South America — and to minimize placements in regions that are under stress".

ILFC’s current order book stands at 157 aircraft, including 54 Airbus models (11 A319s, five A320s, five A321s, three A330s, 20 A350s and 10 A380s) and 103 Boeing aircraft (25 737s, four 777–300ERs and 74 787s). The order book has steadily been scaled back since a high of 360 back in 2004 and has now been overtaken (as has GECAS) by the huge orders placed by Dubai Aerospace Enterprise. ILFC says that its future orders are "at historic lows", but says that not only does this mean that it is well positioned for the industry downturn but that it will be able "to reap benefits from any opportunities a down market may present". All deliveries to the end of 2009 have already been placed with airlines.

Boeing Capital Corporation

Based at Renton, Washington, BCC finances aircraft sold by Boeing that cannot be financed elsewhere. BCC’s portfolio has fallen significantly in the last year, from 500 aircraft down to 335, and worth approximately $6.2bn as at the end of June 2008.

Unsurprisingly, BCC is particularly exposed to a handful of US airlines, with 56% of BCC’s portfolio by value placed with just five airlines — AirTran, American, Midwest, Hawaiian and Continental (and AirTran alone accounts for 24% of BCC’s portfolio). Altogether 71% of BCC’s portfolio is with US airlines, followed by Europe (17%) and the Asia/Pacific region (7%). And almost 40% of BCC’s portfolio by value is in 717s — although as BCC points out, its risk "is mitigated in part by guarantees from [its parent] Boeing with respect to certain assets — which primarily relates to 717s".

BCC has two divisions: Space & Defence, and Aircraft Financial Services, although most of BCC’s assets and business are in the aviation sector. In the first six months of 2008 BCC reported revenue of $364m, down from $422m in January–June 2007, and net profit of $73m, compared with $95m in the first half of 2007.

BCC has trimmed its staff over the last year, from 200 down to 170, and they are based at four offices in the US as well as in Brussels, Moscow and Hong Kong (a Stockholm office has been closed in the last year).


Dublin–based AWAS now incorporates Pegasus Aviation, which was merged after Terra Forma — a European private equity group — bought the former in March 2006 and the latter in June 2007. The merged company has 85 employees (and a new senior management team) and is now headquartered in Dublin, with other offices in New York, Miami and Singapore (while offices in Sydney, Seattle — the previous HQ — and London were closed in 2007).

Pre–merger, AWAS and Pegasus had a combined fleet of more than 300 owned and managed aircraft, but the merged fleet now stands at 317 aircraft, with 223 owned aircraft placed with 99 customers in 45 countries, most of which are split equally between three areas — Europe, the Asia/Pacific region and the Americas. AWAS also manages 94 aircraft for others.

AWAS’s strategy is to maintain a diversified portfolio, whether by age, model, lessor credit quality or client geography. In 2007 AWAS bought 11 aircraft and sold 25, and its current portfolio comprises 52 Airbus aircraft (including 42 A320 family aircraft and six A330s) and 170 Boeing aircraft (including 93 737s, 15 757s and 28 767s). In the 12 month period ending November 30th 2007 AWAS’s lease revenue grew 90% to US$577m, with operating profit rising from $174m in 2006 to $239m in 2007.

In December 2007 AWAS ordered 31 737NGs (plus purchase rights for another 19 aircraft), and in January this year AWAS placed an order for 75 A320s family aircraft (plus 25 options), all to be delivered over the next seven years. Altogether the lessor has 122 aircraft on order, including 33 737s, six 787s, 75 A320s, six A330–200s and two A350s.


Dutch–based AerCap has a portfolio of 314 owned and managed aircraft, slightly down on the 2007 figure (340 aircraft), and worth around $4.3bn. The fleet includes narrowbodies (A320 family, A300s, MD–80s, 737s and 757s), widebodies (A330s, A340s, 767s and MD–11s) and regional jets (F100s, F70s). These are currently placed with approximately 95 customers in 45 countries, the largest part of which are based in Europe (40 clients), North and South America (24), and the Asia/Pacific region (22).

AerCap is listed on the NYSE and in the first–half of 2008 recorded a 13% rise in revenue to $627.8m, with net income increasing by 26% to $119.5m. In Q2 2008 AerCap bought a portfolio of 19 aircraft from TUI Travel, including 11 737- 800s, six 757s and two 767–300ERs. These aircraft have since been leased back to TUI. AerCap also sold 10 older model aircraft from its portfolio in the April–June 2008 period.

AerCap has not placed an order for new aircraft since May 2007 (when it ordered 10 A330–200s), and it has 30 aircraft on outstanding order, all of which are A330 models. However, this June AerCap closed a $1bn securitisation of 30 A320s, part of an order for 70 aircraft placed back in January 2006 by a joint venture company called AerVenture.

CIT Aerospace

New York–based CIT Aerospace has a portfolio of 295 aircraft, of which 161 are Boeing models and 133 are Airbus aircraft. Most of the fleet are narrowbodies (235 aircraft), with the total portfolio value estimated at $8.3bn (with CIT’s Boeing aircraft valued at $3.6bn and the Airbuses at $4.7bn). CIT’s aircraft have an average age of six years, and they are placed with 114 customers around the world, of which the most important markets are Europe (92 aircraft), the Asia/Pacific region (83), North America (67) and Latin America (42).

CIT is part of the CIT Group, a NYSE–quoted commercial and consumer finance group, and the leasing arm also has offices in Dallas, Ft. Lauderdale, Los Angeles and Dublin. Although CIT has not placed any major orders since the summer of 2007, the lessor has 114 aircraft on order (25 Boeing and 89 Airbus models), of which 10 are due to be delivered in the remainder of 2008 and 14 in 2009 (with all of these already placed with customers), and with 60 coming in 2010–2012 and 30 in 2013+.

Babcock & Brown AM

Babcock & Brown Aircraft Management is based in San Francisco and has a portfolio of 280 aircraft, which has increased by more than 60 units in 12 months. The aircraft are placed with more than 70 customers in 31 countries and they have an average age of approximately eight years. In December 2007 BBAM ordered 20 737–800s, which are its only outstanding orders.

BBAM is part of the operating lease division of Babcock & Brown, the Australian investment bank and asset management group, and no financial results are separated out for the aircraft management business. In September 2007 BBAM IPOed on the NYSE a Dublin–based entity called "Babcock & Brown Air", which today has more than 60 aircraft, all managed by BBAM.

Aviation Capital Group

Aviation Capital Group (ACG) currently has a portfolio of 234 owned or managed aircraft (compared with 228 a year ago), worth an estimated $5.3bn and placed with 93 clients in more than 40 countries. ACG is primarily a narrowbody specialist, although it does also have widebodies in its portfolio.

ACG is owned by US insurance giant Pacific LifeCorp and is based in Newport Beach, California, with other offices in Seattle, Connecticut, London, Shanghai, Singapore (opened last year) and Santiago in Chile. In 2007 ACG had revenue of $611m, 8.5% up on 2006. Unlike some of its peers, ACG is bullish about the market, and in July this year ACG ordered 23 A320 family aircraft for delivery from 2011 (bringing total orders for the type to 68), as well as 17 737–700s. The total order book now stands at 145 aircraft (68 Airbus models and 77 Boeing), compared with outstanding orders of 69 as of 12 months ago. All orders through to 2010 have already been placed with customers.

RBS Aviation Capital

RBS Aviation Capital is based in Dublin and has offices in London, Connecticut, Hong Kong, Shanghai, Toulouse, Dubai and Tokyo. It employs 90 staff and offers a variety of commercial aviation finance solutions, with total lending and owned assets of around $13bn.

The company was launched by the Royal Bank of Scotland in 2001 and today has an estimated portfolio of 200 aircraft that are placed with 66 customers. Most of these are based in Europe (28 clients), the Asia/Pacific region (18, including seven airlines in China) and the Americas (16). RBS Aviation Capital currently has a A319 and 10 A320s on order.


Aircastle has a portfolio of 135 aircraft (up from 100 a year ago) with an average age of less than six years and a value of $4.1bn. They are placed with 58 customers in 30 countries, and of these around 9% are placed with the more vulnerable US market (with most of those at US Airways). Most of the fleet is placed in Europe (45%), with the next most important market being the Asia/Pacific region (25%).Three–quarters of the fleet (by value) are passenger aircraft and the rest freighters. As with other lessors, Aircastle makes "opportunistic" sales — it sold three 737–500s in May 2008. The lessor also has 15 A330–200Fs on order.

Aircastle employs 72 and is based in Connecticut, with other offices in Dublin and Singapore. In the first–half of 2008 Aircastle recorded revenue of $280m, compared with $155m in the January–June 2007 period, and net income of $67m ($60m in H1 2007).

Macquarie AirFinance

Previously known as Macquarie Aircraft Leasing Limited (MALL), Macquarie AirFinance (in which Macquarie owns a 34% share) is based in Dublin and also has offices in San Francisco and London.

Macquarie AirFinance owns 80 aircraft (including 41 A320 family aircraft and 32 737NGs) and manages 50 more (compared with 39 owned and 49 managed as of a year ago). The fleet is placed with 57 customers in 32 countries, including airlines such as bmi, easyJet, SIA, Tiger Airways and United.

In February the lessor closed a $1bn credit facility with a group of European banks, and John Willingham, CEO, says that this financing gives Macquarie AirFinance "significant flexibility to acquire modern in–demand aircraft".

ORIX Aviation

ORIX Aviation is based in Dublin and has a fleet of 112 aircraft (trimmed from 120 a year ago), worth an estimated $3.35bn (including engines). It has sold a handful of aircraft over the last year and another three 737s are currently available for sale, although ORIX intends to increase the fleet to 150 within the next few years. The increase will come not from new orders but via acquiring second–hand aircraft from lessors and other sources.

The current portfolio is placed with 35 customers, most of which are European and North American airlines, with the odd customer in Africa, China and elsewhere. The vast majority of the portfolio is narrowbody aircraft, including 31 A320 family aircraft and 41 737s. ORIX Aviation is owned by the Japanese financial services group Orix Corporation, which in February this year took a 10% stake in AirAsiaX.

BOC Aviation

Formerly known as Singapore Aircraft Leasing Enterprise, the renamed BOC Aviation — now owned by the Bank of China — has 83 owned and managed aircraft, with an average age of just four years. They are largely A320 family and 737NGs, although BOC also has a handful of A330s and 777s. They are placed with 30 customers worldwide, and BOC has 56 aircraft on order, for delivery through to 2013, including 31 737s, 20 A320s and five A330–200Fs.

Singapore–based BOC also has offices in London, Washington DC, Seattle and San Diego and in 2007 recorded record net profits of US$81.4m, 67.8% up on 2006. BOC has also been expanding into other areas of aviation finance, and its London office has arranged debt financing for four A321s owned by British Airways. Last year BOC strengthened its balance sheet and reduced its debt–to–equity ratio, and with an unused US$1bn debt facility is well positioned "to take advantages of opportunities which may arise" this year, according to Robert Martin, CEO of BOC Aviation.


In Q4 2007 Dublin–based Pembroke was bought by Standard Chartered from previous owners Medulla Asset Managers for an undisclosed sum. Pembroke was launched back in 1993 and was owned 50% by GATX Capital and 50% by Rolls–Royce before being sold to its management team in 2006, via an investment vehicle called Medulla Asset Managers.

Pembroke has a portfolio of 10 owned and 67 managed aircraft (compared with 20 and 59 respectively as of a year ago), placed with 30 airlines around the globe. It is a narrowbody specialist, with its owned and managed fleet including 16 A320 family aircraft, four 717s, a single MD–82, 22 737s three 767–300ERs, 17 Fokker 100s, 12 CRJs and two DHC8s.

Al Waha Capital

Abu Dhabi–based Al Waha Capital was founded as Oasis International Leasing back in 1997 by the Abu Dhabi Investment Company, BAe and the Gulf Investment Corporation, before changing its name to Waha in the first quarter of 2008. Now listed on the Abu Dhabi stock exchange, today Al Waha is a holding company for a variety of infrastructure and finance businesses, but its aircraft portfolio numbers an estimated 55 aircraft.

Genesis Lease

Genesis Lease is based in Shannon, Ireland and has a portfolio of 54 aircraft (up from 43 a year ago) — 23 737s, 23 A320 family aircraft, one A330, two 747s, three 767s and two ERJs. Its portfolio has an average age of 6.6 years and is placed with 35 customers in 19 countries (including Air China, American and United). The fleet is managed on its behalf by GECAS, and in the first six months of 2008 Genesis reported a 25% rise in revenue to $107.1m, although net profit fell 16% to $18.8m, thanks to an increase in depreciation and a $3.2m charge for the early termination of two aircraft leased with Aloha Airlines (though these aircraft have been placed with VRG in Brazil from the third quarter of 2008).

Genesis is listed on the NYSE and intends to add to its fleet over the next 12 months, believing that with GECAS managing its portfolio this will enable Genesis management to "focus on aircraft acquisitions", with narrowbodies likely to be the main area of attention.


Global Aviation Asset Management (GAAM) is a Sydney–based lessor with a portfolio of 53 aircraft, including 23 A320 family aircraft, three A340s, six 717s, 18 737s and three 757s. They are placed with 25 airlines globally, including Air China, BA, Qantas and Air France. GAAM also has offices in London and Dublin, and is looking to expand its portfolio significantly over the next few years; late last year it acquired 20 aircraft from Lease Corporation International.

Dubai Aerospace Enterprise

The biggest development in the leasing industry this year has been the ambitious plans of Dubai Aerospace Enterprise (DAE) — the UAE government–backed aerospace group — to become a "world–class" leasing company over the next few years. From November 2007 onwards its DAE Capital division has been rapidly assembling a substantial portfolio, with the latest deal being the acquisition of 10 747- 8Fs and eight 777F from Emirates this summer, bringing DAE’s total portfolio to 49 aircraft. However, at the Dubai air show in November 2007 DAE announced LOIs (since converted into firm orders) for a massive $27bn worth of aircraft (at list prices), including 70 A320 family aircraft and 30 A350–900s, for delivery in 2013- 2022, as well as 70 737NGs, five 747s, 10 777s, and 5 787s, for delivery from 2010 onwards.

Guggenheim Aviation Partners

US–based GAP is owned by Guggenheim Partners, a diversified financial services company that has 15 offices around the world. The lessor’s strategy is to "acquire assets at discounts to base values, lease the aircraft … and then sell those assets on an opportunistic basis". GAP specialises in acquiring passenger aircraft and then converting hem into freighters, a market that GAP says "is expected to benefit from near–term industry trends".

GAP’s portfolio of around 40 aircraft — with an asset value of $1bn — is the same as a year ago, although in October 2007 GAP closed a $737m investment fund that will help finance its portfolio expansion, with the medium–term target being a fleet of around 100–125 aircraft with an asset value of more than $3bn. GAP currently has 16 aircraft on order, including four 747s, six 777s and six A330–200Fs.


Alafco is a specialist in Sharia–based leasing and is owned by the Kuwait Finance House. It has a portfolio of 27 owned and managed aircraft and the owned fleet comprises nine 737–800s, three A320 family aircraft, four 777s and a single A310.

These are placed with 15 customers in the Middle East, Asia/Pacific region and Europe, with the largest customer being Turkish Airlines, which leases five 737–800s, followed by China Eastern, with three aircraft. This is slightly down on the 33 aircraft Alafco owned or managed a year ago but nevertheless Alafco aims to increase its portfolio to around 100 aircraft over the next few years, and it currently has 60 outstanding orders (28 Boeing and 32 Airbus aircraft), for delivery in 2009–2017.

In June Alafco signed a deal with Saudi Arabian Airlines for the sale or lease of 17 of its aircraft on order, including the sale of eight 787s (being delivered in 2014 and 2015) and the lease of another four 787s being delivered in 2009 and five A320s being delivered in 2009.

Other lessors

Florida–basedGA Telesisis a maintenance and aviation finance company that also has a portfolio of 90 aircraft, including Boeing, Airbus, Bombardier and Embraer types, while Sydneybased Allco Finance has a portfolio of 66 aircraft (up from 41 a year ago), of which 45 are narrowbodies (including 26 A320s and 10 737s). Most of its aircraft are leased with Asia/Pacific airlines, including Qantas and SIA.

SAFAIR is a South African lessor with a portfolio of 65 mixed aircraft (compared with 44 a year ago), of which 19 are 737s and eight are MD–80s. Dublin–basedAergo Capitalis an older model narrowbody specialist and has a fleet of 60 owned aircraft (36 a year ago), most of which are 737s or MD80s. They are leased to more than 20 airlines worldwide, and Aergo also has offices in Nairobi, Santiago (Chile) and Jakarta.

Texas–based Jetran International"significant inventory of 737, DC–9, and MD80 aircraft" which Aviation Strategy estimates at 60 aircraft, while BCI Aircraft Leasing is based in Chicago and has offices in Los Angeles, Buenos Aires, Lille and Istanbul. It has an estimated 55–strong fleet of mostly narrowbody models, and customers include Air France, BA, Delta, KLM and Southwest.

World Star Aviationis based in San Francisco and manages a fleet of 54 aircraft for 30 airlines in 20 countries. It specialises in cargo aircraft and late–model narrowbodies. Sumisho Aircraft Asset Management is located in Amsterdam and is a subsidiary of Japan’s Sumitomo Corporation. It has a fleet of 50 owned and managed A320 family aircraft, A330s, A340s, 737NGs and 767s. Compass Capitalis a San Francisco–headquartered asset finance and management company that currently owns or manages 45 aircraft.

VGS is based in Dublin and was formed in 2007 by combining the former aviation assets of Volito Aviation and Goldman Sachs Special Situations Group. It has a mixed portfolio of 45 aircraft. Magellan Air is a Shannon–based company that manages a fleet of 40 aircraft, while Vx Capital Partners is based in San Francisco and has an estimated 40 aircraft in its portfolio.

SkyWorks Leasing(which changed its name from JetWorks Leasing in January) is based in Connecticut and has a portfolio of 36 aircraft, including freighters, narrowbodies and widebodies. RPK Capital Managementis a Chicago lessor with approximately 35 aircraft in its portfolio, while Aircorp is based in Dallas and has a fleet of 30 727s and 737s. AAR is an Illinois–based aviation group with a leasing subsidiary that has an estimated 30–strong portfolio. Austria’s Avia Consultmanages an estimated 30 aircraft, while New York–based Deutsche Bank Equipment Leasing has approximately 30 older model 737 and A320 aircraft in its portfolio.

Munich–based Goal is owned by Lufthansa (40%) and KG Allgemeine Leasing (60%), and has a portfolio of 28 aircraft, including eight 737s, four 757s and four A310s placed largely with European airlines.Avion Aircraft Trading is based in Iceland and has a portfolio of 26 freighters with eight A330–200Fs on order, while Seattle–based Itochu Airlease -part of Japan’s Itochu Corporation — has increased its fleet to 24 aircraft (from 10) over the last year.

Q Aviation is located in Texas and has a fleet of 23 aircraft. In February this year Q placed an order for the conversion of 10 767- 300ERs from passenger to cargo variants. Q Aviation also placed options for 10 further aircraft and the first of the firm orders will be delivered in 2010. Q was put up for sale in 2006, but was taken off the market in 2007 as a suitable buyer — at the right price — could not be found.

In the UK, Gatwick–based Aircraft Leasing and Management manages 22 aircraft on behalf of clients, while Amsterdam–based Sojitz Aircraft Leasing is a subsidiary of Japan’s Nissho Iwai Corporation and has a fleet of 22 Boeing aircraft. GMT Global is a Dublin lessor with 22 aircraft (16 widebodies and six narrowbodies) that was launched to operate the portfolio of aircraft previously owned by the Republic Financial Corporation. GMT bought four A320s for $68m from Aercap in July 2008, and also has offices in Colorado and Virginia in the US.

Aircraft Financing & Trading is an Amsterdam lessor with an estimated fleet of 20 jets, while Novus Aviation is a Swiss lessor with an estimated 20–strong portfolio worth $1bn that is placed with clients around the world, including Emirates, China Eastern and bmi.

US lessor First Greenwich Kahala has approximately 20 aircraft on its books, while Automatic, based in Orlando, has doubled its portfolio in a year, to 20 aircraft.

Bavaria International Aircraft Leasing is based in Munich and owned by German corporate group Schorghuber. Its fleet of 19 narrowbody aircraft, including 717s, 737s and A320s, are placed around the world with clients that include SAS, China Southern and Qantas.

Jetscape is based in Fort Lauderdale, Florida, and currently has a fleet of 18 aircraft (14 owned and four managed) — the majority of which are 737s or A320 family aircraft — that are leased to 11 airlines. In February Jetscape ordered 19 Emb–190LRs, to be delivered in 2009–2012. Airbus Asset Management re–markets used aircraft for Airbus, and has an estimated 15 aircraft in its portfolio (compared with 30 a year ago).

Airfleet Credit Corporation is registered in Liechtenstein and owns an estimated 15 aircraft, while Frankfurt–based Deutsche Structured Finance has approximately 15 aircraft in its portfolio, including 737s and 767s.

Global Aviation Leasing, based in Gibraltar, has a fleet of 14 DC–9/10s and MD–80s, while with approximately 10 aircraft in their portfolios each are Phoenix Aircraft Leasing, a Singaporean company, Veling - based in the Mauritius — and US lessor >Universal Asset Management.

CDB Financial Leasing was previously known as Shenzhen Financial Leasing until the acquisition of a 95% stake in the lessor by the China Development Bank earlier this year (other minority shareholders include Hainan Airlines). It has an estimated portfolio of nine 737s that are all leased to Chinese airlines.

Tombo Aviationis based in California and is owned by Japan’s Matsui & Co. It has a portfolio of nine narrowbody and widebody aircraft worth more than $400m. Skytech- AIC is based in the UK and has a fleet of nine aircraft (including 747s and 777s) valued at $500m.

AerVenture, an Irish joint venture between AerCap and Kuwait–based LoadAir, has orders for 54 A320 family aircraft, while Dubai–based LCAL (Low–Cost Aircraft Leasing) has outstanding orders for 21 787- 8s and 787–9s, the first of which will be delivered in 2009. Intrepid Aviation is a US freighter leasing company that has outstanding orders for 20 A330–200 freighters, with delivery from 2010 onwards, while Shannonbased AerDragon Aviation Partners — a joint venture company owned 50% by the China Aviation Supplies Import & Export Group Corporation, 25% by AerCap and 25% by Caylon AirFinance — has an outstanding order for 13 A320s.

Deucalion Capital is part of Germany’s DVB Bank group and in November 2007 ordered eight 777Fs. Four of these aircraft (to be delivered in 2009 and 2010) have subsequently been sold on to Munich–based DCM Deutsche Capital Management, which will lease them to cargo airline AeroLogic.

Two US private equity companies have placed orders - MatlinPatterson has six A330–200Fs on order, while Hill Capital Partners (which last year bought US cargo airline Southern Air) has six 777s on order.

    Managed/   Boeing Airbus Total
Company Owned* part-owned* Total orders orders orders
GECAS 1,475 300 1,775 129 66 195
ILFC 947 108 1,055 103 54 157
BCC     335      
AWAS 223 94 317 39 83 122
AerCap     314   30 30
CIT     295 25 89 114
BBAM     280 20   20
ACG     234 77 68 145
RBS     200   11 11
Aircastle     135   15 15
Macquarie AirFinance 80 50 130      
ORIX     112      
GA Telesis     90      
BOC Aviation     83 31 25 56
Pembroke 10 67 77      
Allco Finance     66      
SAFAIR     65      
Aergo Capital     60      
Jetran     60      
BCI Aircraft Leasing     55      
Al Waha Capital     55      
World Star Aviation     54      
Genesis     54      
GAAM     53      
Sumisho     50      
Dubai Aerospace Enterprise     49 100 100 200
Compass Capital     45      
VGS     45      
Magellan Air     40      
Guggenheim     40 10 6 16
Vx Capital Partners     40      
SkyWorks Leasing     36      
RPK Capital Management     35      
Aircorp     30      
AAR     30      
Avia Consult     30      
Deutsche Bank Equipment Leasing     30      
Goal     28      
Alafco 17 10 27 28 32 60
Avion Aircraft Trading     26   8 8
Itochu Airlease     24      
Q Aviation     23      
Aircraft Leasing and Management   22 22      
Sojitz Aircraft Leasing     22      
GMT Global     22      
Aircraft Financing & Trading     20      
Novus Aviation     20      
First Greenwich Kahala     20      
Automatic     20      
Bavaria     19      
Jetscape 14 4 18      
Airbus Asset Management     15      
Airfleet Credit Corporation     15      
Deutsche Structured Finance     15      
Global Aviation Leasing     14      
Veling     10      
Phoenix Aircraft Leasing     10      
Universal Asset Management     10      
CDB Financial Leasing     9      
Tombo Aviation     9      
Skytech-AIC     9      
AerVenture         54 54
LCAL       21   21
Intrepid Aviation         20 20
AerDragon Aviation Partners         13 13
Deucalion Capital       8   8
MatlinPatterson         6 6
Oak Hill Capital Partners       6   6
Total 2,766 655 6,881 597 680 1,277
Note: This table includes jet lessors with at least nine owned or managed aircraft. We exclude entities set up solely to manage the leasing activities of a specific airline. *Where known.

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