presentation | 24-Jan-18

Factors Influencing Aircraft Operating Lease Economics

Alton Team: John Mowry

Market: Aircraft Leasing & Financing

At the Airline Economics: Growth Frontiers Dublin 2018 conference, Alton Aviation Consultancy’s Managing Director John Mowry led a session focused on the aircraft operating leasing economics. The presentation reviewed the expanding market for aircraft operating leases, and then explored the wide range of cash flows that influence economics, including acquisition cost, lease rental income, maintenance cash flows, financing costs, transition costs, residual sales proceeds, and servicing fees. A sensitivity analysis against the baseline assumptions for each cash flow was performed to determine the key factors influencing equity returns (IRRs).