Avolon CE says greener airlines should pay less to lease planes

Airlines with the best environmental scores should pay less for leasing aircraft than more polluting competitors, the head of Avolon said Monday. The radical proposal from Avolon comes as aviation firms face mounting scrutiny over climate policies not only from environmental groups but also investment funds that monitor Environmental, Social and Governance (ESG) performance. Avolon, one of the top three aircraft lessors, claims to have one of the industry's youngest and most efficient fleets. "But that narrative is not good enough for the next 1, 2, 3 or 4 years," CE Domhnal Slattery warned. "More and more of our major bond investors are keen to understand what our 'E' strategy is within 'ESG'. We in turn are keen to understand when underwriting our airline credits what their 'E' strategy is," he said. <br/>