According to a Research and Markets report, "Global Aircraft Financing Market 2012-2016", analysts forecast the Global Aircraft Financing market to grow at a CAGR of 7.27 percent over the period 2012-2016. One of the key factors contributing to this market growth is the growing Aircraft Replacement market. The Global Aircraft Financing market has also been witnessing the reduced dependence on export credit support from banks. However, the limited liquidity in the market could pose a challenge to the growth of this market.
The key vendors dominating this market space are Banc of America Leasing & Capital LLC., GE Capital, International Finance Lease Finance Corp., and CIT Group Inc.
Other vendors mentioned in the report are GECAS, BBAM, Aer Cap, and BOE Aviation.
Commenting on the report, an analyst from the team said: Continued growth is expected in EETC issuances to expand the market's liquidity and improve pricing. Lessors should continue to evolve their use of the capital markets. The expansion will need to coincide with an evolution of the credit rating agencies' understanding of the aircraft leasing business and the development of rational and consistent rating criteria for aircraft lessors. In 2013, the US capital markets are expected to continue to be the primary market for the origination and syndication of aircraft public debt, though regional capital markets should continue to play a growing role.
According to the report, one of the major drivers in this market is the stable growth of aircraft carriers. The global air travel demand has been on the rise, which provides a steady demand for aircraft. There has been a sharp rise in the demand for commercial aircraft, accounting to approximately 5 percent in recent years.
Further, the report states that one of the main challenges is the higher fuel price. The rising price of fuel is leading to a decline in the activities and operations of the commercial aircraft, which is resulting in a decline in the demand for aircraft.
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