Aircraft leasing to see strong demand

New York: International Lease Finance Corp, the world's largest aircraft leasing company, believes continued demand from emerging markets such as China will keep demand for commercial aircraft strong through 2008, but expects the market to soften in 2009.
ILFC, a unit of American International Group Inc, expects aircraft orders to exceed 1,000 this year as it did the last two years, chief operating officer John Plueger said on a conference call with UBS Investment Research. A recording of the call was released to clients on Friday.
Plueger said first-quarter aircraft orders were up to 319 compared with 265 in the first quarter of 2006.
Demand is expected to be driven by emerging economies in China and India, with carriers in developed markets such as the United States and Europe making only incremental orders.
Despite rampant growth in India, Plueger is concerned about doing business there, because the airlines are not profitable and the aviation infrastructure cannot support the planes already scheduled to be delivered to the country.
In China, Plueger said demand remains high, but rates are low and the company is looking elsewhere for deals that provide higher yields.
11/06/07 Reuters/Gulf News, United Arab Emirates

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Categories: Foreign Jun 2007, General Aviation Jun 2007