Leased jetliner demand on the rise; lessors get better terms

The post–Sept. 11 glut of airplanes for leasing is gone, The Wall Street Journal said in a recent report. Demand for planes is rising quickly, pushing the cost of buying or leasing planes higher.

Until recently, some U.S. carriers benefited from leasing deals inked when times were tougher. Today, however, major aircraft lessors are able to negotiate more favorable terms, in part because they can get higher prices overseas. That's particularly true in Asia, where carriers are growing rapidly, the Journal said.

According to the Journal, General Electric—the biggest creditor at several airlines operating under bankruptcy protection—will take 18 737-800 jets from financially ailing ATA and send them to airlines in China, India and Brazil. GE also is taking 25 planes from US Airways, sending some overseas and some to cargo companies. And GE is taking 10 planes back from struggling Washington, D.C., carrier Independence Air.

According to the Journal, "there's more demand than we have product for," Michael Platt, senior vice president at International Lease Finance Corp., told an International Society of Transport Aircraft Trading conference last month.