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The Numbers are not Adding up in Favour of the Consumer
Airlines are finding ways to cope with the decrease in demand for flights. They are cutting prices, which means they have added fees to claw back some of the discounts. They are grounding planes. Two thousand airliners were grounded around the world in the last year.
There are approximately one third of the airliners in the world are owned or managed by leasing companies. Airlines are not renewing their leases. Plane values have declined by as much as a third. The leasing comopanies are in need of cash flow. General Electric, among others, is trying to sell its plane leasing wing, but has no buyers. Leasing is in turmoil financially.
Meanwhile Boeing and Airbus are trying to sell 1000 new liners this year. Wow! Hold onto your travel hats folks, it looks like a perfect storm is forming for passengers and airlines alike.
… when it all shakes out, there will be increases for the lessee and that means a probable rise in air ticket prices.
many of the world’s biggest jet-leasing companies — top customers for Boeing and Airbus — are sinking in debt and scrambling for cash. Several are now up for sale but having difficulty attracting buyers. When the dust eventually settles, analysts say, many lessors will probably face higher borrowing costs. And that could increase the cost of flying for airlines and passengers.
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