Middle East & Africa Aviation Leasing Market is expected to reach US$ 29,214.98 million by 2030
According to our latest study on "Middle East & Africa Aviation Leasing Market to 2030 – COVID-19 Impact and Global Analysis – by Leasing Type, Aircraft Type, and Country," the market was valued at US$ 19,973.04 million in 2023 and is expected to reach US$ 29,214.98 million by 2030; it is anticipated to register a CAGR of 5.6% from 2022 to 2030.
Major aircraft leasing companies in the MEA are attracting global airlines for financing and leasing services such as cabin crew, insurance, and aircraft management and maintenance. Aviation leasing has gained traction in the market in the past few years, in which commercial aircraft leasing is the rapidly developing segment apart from government agencies. AerCap, SMBC Aviation Capital, Avilease PIF, ABL Corp, Novus Aviation Capital Ltd, Dubai Aerospace Enterprise Ltd, Alafco Aviation Lease, And Finance Co, and Sahara African Aviation (Pty) Ltd are among the world's largest aviation leasing companies and key market players in the MEA. The concentration of major aircraft leasing companies in the region offers advantages such as strategic location, favorable business environment, strong airline network, growing aviation industry, and financing capabilities, making this region a hub for aircraft leasing activities. In 2023, AerCap announced a leasing agreement with PT Rusky Aero Indonesia, a cargo airline, for two Boeing converted freighters, 737-800BCF. The company reported the beginning of new investment opportunities and new customers, such as PT Rusky Aero Indonesia. The market share of the AerCap in the MEA is growing in the aviation sector due to events such as AerCap's share repurchase program worth US$ 500 million. Thus, the availability of Middle East & Africa aviation leasing market players in the MEA, propelling the Middle East & Africa aviation leasing market growth exponentially. Also, the rise of e-commerce and the global expansion of supply chains have fueled the need for efficient and reliable transportation of goods worldwide. As a result, there is a surge in demand for cargo aircraft to support the increasing volume of freight shipments. The Middle East & Africa aviation leasing market players can provide leasing solutions for cargo airlines, freight operators, and logistics companies. Leasing allows these entities to access the required aircraft without the upfront costs and long-term commitments associated with aircraft ownership. It offers flexibility and scalability, enabling them to adapt to changing market conditions and seasonal fluctuations in demand. Thus, such benefits of aviation leasing leads to its adoption and fuels its Middle East & Africa aviation leasing market growth.
There is a strong and steady demand for cargo aircraft leasing due to the increasing popularity of online shopping and global trade, which would provide opportunities for leasing companies. Also, the cargo market offers a diverse range of aircraft requirements. From smaller regional freighters to large wide-body cargo planes, there is a need for various aircraft types to accommodate different cargo volumes and transportation distances. Due to this diversity, leasing companies offer a wide portfolio of aircraft options to cater to the specific needs of cargo operators. In 2023, the UAE government issued a license for electric cargo aircraft. This license reflects the UAE's commitment to sustainable development and its proactive approach to embracing innovative solutions. These advancements in electric cargo aircraft are set to drive the growth of cargo deliveries, facilitating efficient, eco-friendly, and economically sustainable transportation of goods. Due to the continuous developments and adoption of new technologies in the MEA to expand the supply chain, the demand for cargo aircraft is increasing.
The COVID-19 pandemic significantly impacted the Middle East & Africa aviation leasing market growth. The region experienced a halt in aviation activities due to lockdown measures. However, in 2022, due to the presence of major aircraft leasing companies such as Avilease, Abl Corporation, Novus Aviation Capital, and Dubai Aerospace Enterprise (DAE) Ltd in the MEA, international countries started procuring aircraft from service providers in the region. In 2022, Qatar Airways wet-leased three Airbus A330-300s from Oman Air. It will help the airlines bridge the operational gaps during peak seasons or when their aircraft are undergoing maintenance or repairs. In October 2022, UAE LLC Flydubai has signed an agreement to lease four Boeing 737-800s from Smartwings to capture the seasonal demand. Due to such leasing agreements, the companies can avoid the significant upfront costs associated with purchasing an aircraft, allowing them to allocate their capital more efficiently.
The Middle East & Africa aviation leasing market is segmented based on leasing type and aircraft type. Based on leasing type, the Middle East & Africa aviation leasing market is segmented into dry leasing, wet leasing, and damp leasing. Based on aircraft type, the Middle East & Africa aviation leasing market is segmented into narrow body, wide body, and regional aircraft.
Dubai Aerospace Enterprise (DAE) Ltd., AerCap Holdings N.V., ALAFCO Aviation Lease and Finance Co., Avolon, and General Electric are the key Middle East & Africa aviation leasing market players profiled during this study. In addition, several other important Middle East & Africa aviation leasing market players were studied and analyzed during this market study to get a holistic view of the Middle East & Africa aviation leasing market size and its ecosystem.
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