The decision to purchase your own aircraft, whether for personal or commercial use, is a huge one and should, of course, not be taken lightly. There are many variables to consider in the decision making process. But there is also always the option of aircraft leasing. Much like car leasing, aircraft leasing is not for every operator but for some operators, it does make more sense than purchasing.
Aircraft leasing is a growth market in the aviation industry. In 2023, aircraft leasing companies experienced a stellar year. Today, with more than half of all commercial aircraft in service being leased, aircraft leasing companies are actually one of the secret drivers of aviation. We are going to take a look at the top ten aircraft leasing companies globally. But first, we need to consider what types of financing are out there and how they differ from traditional aircraft purchasing to own.
Why Lease an Aircraft When You Can Own One?
Why would you want to lease an aircraft when you could just as well build equity with the intent to own the aircraft? Over the last decade, it has become obvious that airplane leasing can be much more flexible, cost-effective and operationally beneficial to airlines. However, the question is not easy to answer, nor does it have a single answer. Whether it is most suitable for you to buy, rent, or lease aircraft, is highly individual and differs (sometimes radically) from organization to organization, and from person to person.
Perhaps the most widespread and obvious reason for leasing is the proposed purpose of the aircraft and the expected usage. For instance, a corporate jet with limited use might end up being a good candidate for ownership since its wear will be considerably less than that of a commuter or corporate aircraft operated for the expressed purpose of executive transportation as a charter.
This is dramatically oversimplifying the decision of whether to lease or own an aircraft. Tax rates vary radically between countries, and even between states in the U.S. and provinces in Canada. Owners who are interested in purchasing may still end up leasing an aircraft simply to avoid tax penalties due to the geographic location of the transaction and where the aircraft is housed. This is further exaggerated when the aircraft may be housed at more than one geographic location, or potentially between countries internationally.
Other Factors Contributing to Aircraft Leasing Over Purchasing
Operational cost is another factor which plays heavily into the decision of whether to purchase or lease an aircraft. The more an aircraft is operated, the higher that cost will be. The physical duration between hourly inspections lessens considerably which increases maintenance and operation costs as well as taking the aircraft out of commission more frequently.
The main advantage of leasing aircraft is the ability to maintain a more modern and current fleet which will be cycled out and replaced again with new aircraft at designated dates or intervals. This is important for airlines and charters which expect to have a modern fleet and put a lot of hours on their aircraft. As long as they operate within the contractual agreements of the lease, they will upgrade to new aircraft at the specified time, assuring modern equipment which also requires less maintenance to upkeep and upgrade than older equipment.
Aircraft Leasing Companies: The Top 10 Globally
If you consider to lease an airplane, here are, as of 2024, the top 10 lessors globally by portfolio:
#1: Aercap Holdings N.V.
AerCap Holdings N.V. is the self-proclaimed “global leader in aircraft leasing”. On November 1, 2021, AerCap acquired General Electric Capital Aviation Services (GECAS) from General Electric (GE). With this strategic combination, the company positions itself as the global industry leader across all areas of aircraft leasing: aircraft, engines, and helicopters. AerCap has its headquarters in Dublin with offices around the world.
As of September 30, 2024, AerCap owns $74 billion in total assets, working with approximately 300 customers in countries across the world, including the world’s most successful airlines. Their portfolio includes 1,700 aircraft, more than 1,000 engines and more than 300 helicopters, with 393 aircraft, helicopters and engines on order. AerCap has $17 billion in equity and made $375 million in net income for the third quarter of 2024 alone.
Chances are good that when you book an airline ticket, it will be on an aircraft financed through AerCap. Founded in Ireland, the Emerald Isle has reason to be proud of this one.
Before being acquired by and integrated into AerCap in 2021, GECAS was another of the top 10 aircraft leasing companies. As is the case with so many mega corporations, GE maintains a powerful internal financial service. The Fortune 50 company maintained a 70% market share of narrow body jet engines which are far and away the most widely employed type of airliner the world over. With the backing of one of the world’s largest manufacturers, GECAS could afford to support start-ups, low-cost, and regional air carriers, traditionally the riskiest airlines. But they also did not shy away from the legacy airlines, either.
#2: SMBC Aviation Capital
SMBC Aviation Capital has made a name for itself as one of the leading global aircraft leasing companies and a dominant force to be reckoned with. They are headquartered in Ireland and have divvied their assets up globally with the bulk being in Europe (30%), Asia (38%), and South America (22%) not far behind.
As of 2024, SMBC leases to airlines in 47 countries worldwide and maintains a fleet of approximately 1,000 aircraft owned, managed and committed. Their focus is on the most popular young commercial jet aircraft. With a weighted average age of 5.4 years, their owned fleet is one of the youngest in the commercial aircraft operating lease industry.
#3: Air Lease Corporation (ALC)
With offices in Dublin, Ireland, Los Angeles, and Hong Kong, Air Lease Corporation covers the two largest oceans and the land masses in between. As one of the leading aircraft leasing companies, Air Lease Corp manages over 836 aircraft for more than 117 customers in approximately 60 countries worldwide. Their focus is on the most modern and in-demand commercial aircraft, both narrowbody and widebody.
#4: Avolon
Yet another product of the Emerald Isle – and another leading player in the aircraft leasing industry –, Avolon prides itself on owning and maintaining “the youngest fleet among the world’s three largest aircraft lessors”. These are, of course, the Airbus A320, A330, and Boeing 737 family which represent the most used airliner jets in the world in spades. Their fleet comprises 1,013 aircraft owned, managed and committed.
Avolon works with 140 airlines across 59 countries. Their impressive portfolio of clients includes China Airlines, easyJet, Delta, KLM, Korean Air, and many more. This is already an impressive stable of thoroughbreds which is supported by about 150 other airlines.
#5: BOC Aviation
BOC Aviation, formerly Singapore Aircraft Leasing Enterprise, is a top tier global aircraft operating leasing company. BOC is headquartered in Singapore and has offices worldwide in Dublin, London, New York, and Tianjin.
As of December 31, 2024, BOC owns $24.2 billion in total assets. Their portfolio comprises 709 aircraft and engines owned, managed and on order and they work with a global customer base of 92 airlines in 48 countries. With their owned aircraft having an average age of less than five years, BOC maintains one of the youngest fleets in the aircraft operating lease industry. BOC reported record earnings in the first half of 2024.
#6: BBAM Aircraft Leasing & Management
With more than $21 billion in aviation assets under their management, Babcock & Brown Aircraft Management (BBAM) is one of the world’s leading aircraft lessors. BBAM maintains a modern, in-demand fleet with more than 560 commercial jet aircraft under management and on lease to more than 100 airlines worldwide, including Lufthansa, Emirates, Etihad, and many more.
#7: Industrial and Commercial Bank of China (ICBC)
Taking into consideration that Asia represents the fastest growing airline market in the world with expected deliveries in 2037 being nearly 2:1 over the U.S., it is no surprise that they should have a lessor in the top 10. However, it is difficult to determine just how much business the Industrial and Commercial Bank of China (ICBC) actually does as their web presence is somewhat diminished in comparison to Western companies.
The best estimate shows them managing a fleet of somewhere around 300 aircraft which places them in the ballpark of the other lessors in our list. Beyond that is difficult to determine with the closed nature of Chinese operations since they are inherently government controlled.
#8: Aviation Capital Group (ACG)
Aviation Capital Group (ACG) is a subsidiary of Tokyo Century Corporation. ACG is a global aircraft lessor headquartered in Newport Beach, California, and has a global presence through representatives in Ireland, Spain, Shanghai, Singapore and the United Kingdom.
ACG invests in high demand aircraft. Their owned aircraft portfolio mainly includes fuel-efficient, narrowbody aircraft of the Boeing 737 and Airbus A320 family, with an average fleet age of 6.1 years. Their approximately 500 aircraft owned, managed and committed, are leased to approximately 90 airline customers in about 45 countries worldwide.
#9: Dubai Aerospace Enterprise (DAE) – DAE Capital
Dubai Aerospace Enterprise (DAE) is an industry leading global aviation services company. Its division DAE Capital is one of the leading aircraft lessors and the largest aircraft leasing company in the Middle East. DAE is an enormous conglomerate which has perched itself very well in the global market, particularly after acquiring Ansett Worldwide Aviation Services (AWAS) in August 2017. This created a mega-firm and positioned DAE among the top tier of global aircraft lessors. DAE is headquartered in Dubai, with offices worldwide in Dublin, Amman, Singapore, New York, Miami, and Seattle.
DAE Capital’s $18 billion portfolio comprises a fleet of 500 aircraft owned, managed, and committed, which are leased to 128 airlines in over 60 countries around the world and with an average age of just over six years per portfolio. Their fleet primarily includes the most prolific airline aircraft in the world, which are the Boeing 737 family, the Boeing 787 Dreamliner, the Airbus A320 family, and the short-hop ATR 72-600.
#10: BoCom Leasing – BoCom Aviation
The Bank of Communications Financial Leasing (BoCom Leasing), with BoCom Aviation, also covers the field of aircraft leasing. Rooted in China, BoCom Aviation engages in aircraft leasing services worldwide, with business platforms in Shanghai, Tianjin, Nansha and Ireland. It has a fleet size of 269 aircraft owned and managed, with an orderbook for nearly 200 Airbus, Boeing, and COMAC jets.
The company focuses on commercial, regional and business jets and has RMB 86.2 billion in total leased aviation assets, which equates to roughly $11.8 billion. They work with more than 70 lessees in 26 countries across all continents. BoCom Aviation ranks among the top three in China’s aircraft leasing companies and among the top 10 globally.
Further Leading Aircraft Leasing Companies
Nordic Aviation Capital (NAC)
With five offices globally, in Ireland, Singapore, Denmark, Dubai, and Toronto, Nordic Aviation Capital (NAC) seems poised to take a shot at wearing the title belt. NAC claims to be a global leader in regional aircraft leasing, which is integral to their stake in the market; they have put their eggs in that basket and are holding on firmly by maintaining a very young fleet of popular regional aircraft. Currently, the lessor is also expanding its business into larger narrowbody aircraft such as the Boeing 737 and Airbus A320 family.
NACs strategy seems to be paying off because their fleet has doubled from 2015 to 2020 principally by expanding into regional jets. They lease to more than 60 airline customers in over 40 countries. During 2021, NAC underwent a major financial restructuring and emerged successfully in 2022. As of 2022, their portfolio comprised 370 aircraft owned, managed and committed, with assets of over $3 billion.
By focusing hard on one area which is often ignored in favor of the more individually profitable narrowbody and widebody jets, they have enabled themselves to become one of the leading aircraft leasing firms – as of 2024, NAC is ranked 30 among the top aircraft leasing companies by portfolio.
Chapman Freeborn
Chapman Freeborn is the world’s leading aircraft charter and aviation support company. While most widely known for their specialty as a global aircraft chartering company, they are most certainly no one-trick pony. This English aviation giant with offices worldwide, has its hands in a number of jars.
While it is true that Chapman Freeborn is primarily a chartering agency, they do, in fact, also lease a fairly sizeable fleet of aircraft in many sizes, ranging from twin-turbine commuters to Boeing 747s and Airbus A380s, to airlines worldwide. Oh, and did we mention that they are also a world leader in aerial delivery of animals and livestock? That’s right. Their subsidiary company, Intradco Global, delivers equine, livestock, and even giraffes.
Textron Financial Corporation (TFC)
Textron Financial is a familiar name if there was one in the world of aviation. Textron is the parent company of perhaps the most prolific aircraft manufacturer in the world, Cessna, and also probably the second or third most famous, Beechcraft. Textron also owns the Bell Helicopters, a company storied and rivaled in rotorcraft only by Sikorsky.
Manufacturing is only one part of the financial equation for Textron; money is the other. Textron Financial offers prospective clients in more than 80 countries the ability to finance aircraft from their industry leading brands, which includes more than just aircraft. Textron Financial offers financing for simulators, engines, avionics, and even airport support equipment.
Conclusion to the Top Ten Aircraft Leasing Companies
For aircraft operators who wish to maintain a young fleet of aircraft and expect to turn in inventory every five to ten years, aircraft leasing is an excellent option and there are a number of very reputable companies which will help. Whether your company is a start-up, a regional, low-cost, or a legacy airline with a high pedigree, there is going to be a lessor who specializes in meeting your specific needs.
As an interesting side note, nearly all of the major aircraft leasing and financing companies hold either offices or are headquartered in Ireland. The article “Ireland as a Location for Aircraft Leasing and Financing: An Instinct for Aviation” helps provide some clarity on exactly why this is the case.
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