Aircraft leasing in the Middle East is set to take off, driven by forecasted traffic growth and liberalisation of the region's air travel sector, including the furthering of open skies policies, an expert said at a conference in Dubai.
Speaking at the 3rd Annual Middle East Aviation Finance Conference, Erik Dahmen, commercial director of Oasis International Leasing Company -- the Abu Dhabi-based big ticket leasing company -- said leasing would have a vital role to play in the future financing of the region's airline fleets.
"Although the number of aircraft on operating leases lags behind the global market, the growth potential is enormous. Boeing has estimated the Middle East will need 640 aircraft worth around $63 billion within the next 20 years," said Dahmen.
"Leasing will enable airlines to manage constrained capital budgets by relieving them of the huge financial burden associated with owning aircraft."
Oasis Leasing believes the regional market has largely recovered from the repercussions of the events of September 11 last year. Meanwhile, industry analysts predict, more liberal, open skies policies will increase aircraft purchases.
The worldwide leasing industry has increased from $40 billion to $500 billion in 20 years, demonstrating strong six per cent annual growth, according to Dahmen. Today almost one third of leasing transactions are in the transport sector.
Oasis Leasing has announced three aircraft transactions in recent weeks. In partnership with Compass Capital Corporation in the US, Oasis Leasing has financed the acquisition of an MD82 aircraft on lease to Continental Airlines.
TTN is the most established trade publication in the Middle East distributed on a controlled circulation basis to members of the travel and tourism industry.
Published monthly by Al Hilal Publishing and Marketing Group, the region’s foremost trade publisher, TTN is aimed at professionals in the industry, from travel agents to airline and hotel personnel.
TTN provides in-depth and extensive coverage of relevant issues in the Middle East and North Africa as well as in other parts of the world. Travel related news, analysis, and new appointments together with information on up-coming exhibitions, marketing and promotional campaigns are presented in an innovative and striking colour tabloid.
Every issue also contains a collation of international and regional news and topical features of interest to readers.