LONDON (Reuters) – AerCap expects further consolidation in the global aircraft rental industry following its takeover of General Electric’s rental business, a senior executive said on Monday.
The merger of the two largest aircraft leasing companies in the world, which will become the largest buyer of airliners built by Airbus and Boeing, is expected to be finalized by the end of the year.
When asked if he expected further consolidation in the industry, which helps finance $ 150 billion in aircraft each year, Commercial Director Peter Anderson said: “I think so … and frankly, that would be welcome. players. “
“We welcome some discipline, rational competition in the market,” he added, speaking at the Airline Economics conference in London.
“There are great platforms. Who’s buying that’s a whole different question that I don’t know the answer to.”
The aircraft leasing industry finances 50 to 60 percent of all new passenger aircraft deliveries, its highest level on record, Anderson said.
He said Airbus and Boeing could become more cautious about how many planes they sell to smaller players, as some lessors delayed deliveries during the COVID-19 crisis.
They’re “going to be a little more conservative with lessors in terms of who they’re selling and how much they’re selling,” Anderson said.
AerCap is facing a mixed recovery in the airline industry, Anderson said.
“It’s not a constant recovery. It’s going to be difficult for a while,” he said, pointing to Southeast Asia as a laggard.
But he said a strengthening of the sector meant the “window was closing” for airlines to secure the kind of concessions that have been offered in recent months to help struggling carriers stay afloat.
There is unlikely to be a lasting impact on rental rates due to COVID-19, he said.
(Reporting by Conor Humphries; editing by David Evans and Cynthia Osterman)