Fewer new aircraft lift mid-life plane demand

Carriers are choosing to pay higher fees to extend leases for such aircraft

- Anu Sharma

A global shortage of new aircraft has lifted demand and lease rentals for mid-life planes or those that are five to eight years old.

According to Jared Ailstock, managing partner of AIP Capital, an aviation asset management and investment company, airlines are choosing to pay higher fees to extend leases and keep such aircraft on their fleets, a trend that is consistent worldwide.

“Mid-life aircraft, which would normally have been retired, are staying in fleet longer, so airlines are signing early extensions; you see lease rents go up on those aircraft, you are seeing extensions on those planes to keep them on the fleet," Ailstock said in an interview.