Cruising happily: Rising demand, particularly from budget airlines, has supported growth

The Air Transport Equipment Rental and Leasing industry has performed strongly over the past five years. The industry provides services through renting and short-term operating leases of ground support equipment, aircraft and engines as well as parts. The clients of the industry are mainly passenger air transport operators and airports. In the current year, industry revenue is estimated to increase by 5.4% to reach £481.1 million.Over the five years through 2018-19 industry revenue is expected to increase at a compound annual rate of 6.8%. Industry growth peaked in 2016-17, supported by an increase in inbound tourism stemming from the effects of the depreciation of the pound...read more.

Industry Statistics & Market Size
Revenue
£481.1m
Annual Growth 14-19
6.8%
Forecast Growth 19-24
Profit
Employment
1,160
Businesses
311

Industry Threats & Opportunities

  • Leasing has become a more attractive prospect as a result of prevailing economic uncertainty
  • Economic uncertainty has meant that downstream firms have been more likely to lease than buy
  • Cyclical trends in downstream industries are likely to encourage demand as leasing allows firms to be responsive
  • Industry Report - Starting a New Business Chapter

    Barriers to entry are moderate in the industry. The largest barrier to entry is the large capital requirements to begin operation. Participants in the industry own equipment ranging from entire aircraft, through to engines, other aircraft parts and ground service equipment used at airports. The expensive equipment is usually purchased outright and then leased to customers.Another barrier to entry is the establishment of relationships with airlines and airport operators. These barriers vary with the size and complexity of the airport and the airlines that use its facilities. For global airlines, the competition to provide services on the ground can be international in nature and contracts tend to cover multiple years. In ...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. Only operating leases are included in the industry, financial leasing is excluded.

    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
  • Flying economy
  • Economic uncertainty
  • Industry profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Traffic and tourism
  • Intrinsic volatility
  • 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
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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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