Profit takes off: Wage costs increased at a slower rate than revenue, supporting profit expansion

Demand for air transport equipment rental and leasing services tends to fluctuate in line with air traffic volumes, which are largely affected by economic conditions. Faced with uncertainty and low levels of tourism prior to the start of the period, air transport providers cut their expenditure on rented equipment and relied on in-house equipment instead. Conditions have slowly improved over the past five years, as tourism has grown, domestically and overseas. This has boosted air traffic volumes and therefore demand for rented or leased air transport equipment. Over the five years through 2017-18, revenue is expected to grow at a compound annual rate of 4.3% to reach £346.7 million. This includes slower growth of more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Weak consumer and business confidence areexpected to cause to air traffic volumes to fall
  • Firms have been reluctant to increase labour costs at the same rate as revenue
  • The number of air kilometres travelled by freight is expected to rise, supporting demand
  • Industry Report - Industry Investment Chapter

    The industry has a high level of capital intensity. The typical firm is estimated to spend 71p on wages for every £1.00 spent on capital, which is represented by the depreciation of aircraft transport equipment. Nonetheless, wages still account for a moderate cost, at an estimated 14% of revenue. The industry has high capital intensity due to the large capital investment required to operate. Airline and airport operators can lease equipment to ease capital requirements, although most airlines prefer to own their aeroplanes...purchase to read more.

    Additional Insights for the Air Transport Equipment Rental & Leasing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Air Transport Equipment Rental & Leasing Industry are

  • Provision of appropriate facilities
  • Effective product promotion
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as Demand from airports and Outbound tourism by UK residents in the Air Transport Equipment Rental & Leasing industry impact industry performance..

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    What's in this report

    What is the Air Transport Equipment Rental & Leasing Industry?

    Firms in this industry rent and lease air transport equipment for both passenger and freight services. The rental and leasing arrangements covered by the industry only relate to equipment and the lessor does not provide any operators.

    Industry Products
  • Engines and parts
  • Ground support equipment
  • Aircraft
  • Industry Activities
  • Renting and leasing ground support equipment
  • Renting and leasing aircraft
  • Renting and leasing engines and parts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from airports
  • Outbound tourism by UK residents
  • International tourist numbers
  • Business profit

  • Current Performance
  • Travel turbulence
  • Flying without wings
  • Chart: Revenue Growth

  • Industry Outlook
  • Traffic and tourism
  • Market shift
  • Table: Air Transport Equipment Rental & Leasing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Air Transport Equipment Rental & Leasing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Aircraft, Engine & Parts Manufacturing
  • Aircraft Repair, Maintenance & Overhaul

  • Key Selling Industries
  • Airports
  • Freight Air Transport
  • Scheduled Passenger Air Transport

  • Products & Services
  • Ground support equipment
  • Aircraft
  • Engines and parts
  • Chart: Air Transport Equipment Rental & Leasing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Passenger air transport operators
  • Airports
  • Aircraft repair, maintenance and overhaul
  • Freight air transport operators
  • Chart: Major Market Segmentation for the Air Transport Equipment Rental & Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciationWagesUtilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Air Transport Equipment Rental & Leasing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Air Transport Equipment Rental & Leasing Industry

  • Industry Globalization
    Rolls-Royce Leasing Limited, TCR UK Ltd,
  • Table: Rolls-Royce Leasing Limited - financial performance
  • Table: TCR UK Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Air Transport Equipment Rental & Leasing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Air Transport Equipment Rental & Leasing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dry Lease
  • An agreement where the leased aircraft is operated under the lessee's air operator's certificate.
  • Financial Lease
  • An agreement under which payments by the lessee cover the cost of the leased equipment. The leased item appears on the lessee's balance sheet.
  • Operating Lease
  • An agreement under which the liability for the leased aircraft does not appear on the lessee's balance sheet.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Air Transport Equipment Rental & Leasing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Air Transport Equipment Rental & Leasing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Air Transport Equipment Rental & Leasing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Air Transport Equipment Rental & Leasing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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