Global air financiers see jet shortages dragging on as values soar

The world's largest aircraft lessors forecast on Monday that manufacturing delays would drag on until the end of the decade at least, keeping prices high and limiting the entry of new players into an industry that controls half of the world's jets. The world's top lessors, all among the largest buyers of Boeing and Airbus aircraft, traded stories of crippling delays and sky-high lease rates paid by airline clients at the annual Airline Economics meeting in Ireland, where most of the industry is based. "Neither Airbus nor Boeing have been able to meet any - and I say any - of their production targets. And so the delivery delays are cascading and have a domino effect," said Steven Udvar-Hazy, executive chairman of Air Lease and one of the founders of the leasing industry. "We don't think that this recovery will be any shorter than three or four years to get back to normalcy." Leasing companies have seen rentals and resale values for jetliners rise as airlines try to meet new demand at the same time as planemakers are struggling to recover from the COVID-19 pandemic. For now, that means good profits for lessors and many airlines, since shortages push up demand and fares. But there are concerns over access to efficient new aircraft as supply chains lack parts and labour. Older second-hand planes have been in strong demand to fill the gap.<br/>"The main question for the industry is the speed at which manufacturers will be able to ramp up deliveries. That will determine a lot of other things," said independent aviation adviser Bertrand Grabowski. Delegates are split on how long the shortage will last.<br/>