Asia PR News

SYDNEY, Sept. 29 /MediaNet International-AsiaNet/ –

The Asia Pacific region is the fastest growing market for aircraft leasing,
according to Frost & Sullivan’s aviation analysts

For the first time since 2000, aircraft leasing companies have been able to
raise their leasing rates.

Encouraged by the improving fundamentals of the airline industry, the
aircraft leasing companies have placed 144 orders for new aircraft in the first
half of 2005 compared to only 12 aircraft in all of 2004.

The aircraft leasing industry is largely influenced by the fortunes of the
airline industry - an industry highly competitive and very sensitive to
economic trends. Between 2001 and 2003, lease margins declined due to terrorist
attacks followed by airline bankruptcies and worldwide health concerns such as
SARS.

However, since 2004, the airline industry is recovering worldwide.

In the Asia Pacific region, the aircraft leasing industry in 2004 was worth
US$24.24 billion – making this region the fastest growing region in the world
with a CAGR (compound annual growth rate) of 8.2 per cent between 2004 and
2008. Frost & Sullivan estimates that the leasing market in the Asia Pacific
region will be worth over US$33 billion by 2008.

According to Frost & Sullivan Australia Consulting Director, Mark Dougan,
the growth in leasing rates should finally lead to improving operating margins
for aircraft leasing companies after a number of years of decline.

“We believe that 2004 will mark the low point in operating margins for
leasing companies,” says Dougan.

“For 2005 we see margins improving to around 25 per cent from the low point
of 20 per cent in 2004.”

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providing comprehensive industry coverage that reflects a unique global
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econometrics and demographics. For more information, visit www.frost.com

Media enquiries:

Sharmin Jassal
Corporate Communications
Frost & Sullivan Australia
E: sharmin.jassal@frost.com

SOURCE: Frost & Sullivan