Air finance summit tackles jet shortages amid China travel thaw

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Financiers at the centre of a $200 billion industry underpinning airline fleets are meeting in Dublin this week, gambling that China's decision to free travel will accelerate their recovery from a pandemic downturn, while warning of a shortage of jets.

Three years after the spread of COVID-19 grounded thousands of airliners, demand for air travel is booming again, boosted by Beijing's decision last month to unwind its zero-COVID policies.

"After a 70% recovery in passenger traffic last year led by ... Europe and North America, Asia will drive growth in 2023, helped by the recent reopening in China," Avolon said.ahead of the Lunar New Year, despite worries about infections after Beijing ended curbs last month, with passenger traffic jumping to 63% of 2019 levels since the annual travel season began."Airlines are not dramatically increasing their frequency to China. It's going in the right direction but ...

"The bottom line is MRO; they are totally full," Grabowski said, adding that stored aircraft needed extensive checks. The same is true of aircraft rentals charged by lessors, some of which have on average risen by double-digit percentages over the past 12 to 24 months for a variety of reasons, according to Rob Morris, global head of consultancy at Ascend by Cirium.

With interest rates racing higher to combat inflation, leasing companies must pay significantly more to service the large debts inherited from a multi-year plane ordering boom.

 

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Bring back planes from the boneyard !!! victorville

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