Aircraft rentals have leapt in the last year as airlines scramble to service soaring demand, with every available plane witnessing demand from four to five carriers.
In the popular narrow-body, single-aisle category, the increase has been steeper for older aircraft, portending higher fares as they come with higher operating costs. The rise in lease rates comes at a time the airline industry is struggling with a shortage of aircraft worldwide.
The average market lease rate for a 10-year-old Airbus A320 surged 14% to $177,000 per month in January from $155,000 per month a year earlier, showed data from UK-based aviation research firm Ishka. For a used Boeing B737-800, it was around $194,000 per month, 13% up from last year's $171,000.
Even though newer aircraft cost more than twice as much, the rate of increase has been more muted. The monthly rate for a new aircraft such as an A320neo (new engine option) was up 8% to around $375,000, and that of a Boeing 737-MAX8 was up 7% to $365,000.
The increase in rentals is set to impact Indian airlines like IndiGo, Air India Express and SpiceJet, which mainly operate fleets of Airbus 320s and Boeing 737s. Among the three, IndiGo and Air India Express have large domestic expansion plans.
Denne historien er fra February 27, 2024-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 27, 2024-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Air fares in Sep quarter rise, Q3 may be worse
Multiple public holidays have sparked demand for short trips to domestic destinations, said Indiver Rastogi, president & group head of global business travel at Thomas Cook (India) and SOTC Travel. This year, Independence Day, Janmashtami, Onam, Eid and Ganesh Chat-
Yes, the world is hotter than it has been in 2,000 years or so
A scientific study of tree rings confirms global warming is for real
As a non-resident, is there a tax liability on exiting Indian MFs?
I have been investing in mutual funds for the past four years. Last year, I moved to Dubai and am currently a non-resident Indian NRD). Say, if] exit all my mutual fund investments now, would I have zero tax liability? —Name withheld on request.
Mergers off but PSB privatization still on
T 'he Centre doesn't have any plan to merge public sector banks (PSBS) in FY25, though it will not ditch plans to privatize PSBs during the fiscal, two people aware of the matter said.
Think Tesla Is In Trouble? Pity Even More Its Wannabe EV Rivals
The combined market value of six prominent wannabes hit 400bn in 2021, but today they are worth 65bn
Has The Growth Of Our Economy Translated Into Domestic Jobs?
While the covid shock and other setbacks got in the way, data indicates that employment in India is on a firm recovery path
Financial Sector Reforms Plan To Be Unveiled Post Elections
The govt will cut its stake in five PSBs this fiscal to comply with Sebi’s listing guidelines
Generative AI Is Not Ubiquitous In The Business World-Not Yet
While some AI tools racked up users, some firms are proceeding with caution, or not at all
Wipro’s CEO switch was not about its share price
Shareholder value data does not explain the firm's change on top. In a flux-filled field like infotech, business performance counts for more and Wipro's challenge still seems quite steep
How not to blow a major chunk of your travel budget on visas
Rejection of visas can impact your travel costs, especially when you have to cancel flight and hotel bookings
