Bombardier looks to aircraft lessors

20/01/2010

Bombardier Inc, says it expects leasing companies to account for half its buyers in the coming year as many airlines have balance sheets that are too weak to purchase aircraft. Airlines worldwide are looking towards operating leasing as their way to acquire aircraft, and the company is reported as saying, “One of the major issues airline customers face is how to finance their planes, since banks curtailed their financing.”

The new Bombardier CSeries craft will carry 100 to 145 passengers and compete with 737s and A320s, both smaller models, and has won orders from Lease Corp. International Aviation, a closely held lessor based in Dublin for 17 craft.

Bombardier says it has put together a structured finance team to work with its sales and marketing group, introducing them to lessors and other companies that may help finance planes. The company added that, at the moment, lessors are the best avenue for airlines “because leasing companies have the balance sheet and credit ratings to support the aircraft,” more so than most airlines.

Not every aircraft lessor is a potential buyer of Bombardier aircraft, though. The largest, GECAS, tends only to buy planes with GE engines, whereas Bombardier uses Pratt & Whitney.

The other “giant”, ILFC, isn’t currently in a position to make purchases as its stock rating has been slashed to junk by Moody’s, in December.

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