Avolon (NYSE:AVOL), the international aircraft leasing company, today
issues a White Paper containing updated and expanded analysis of key
factors that influence the economic life of commercial jet aircraft,
building on an earlier study issued in September 2012. The analysis
addresses aircraft retirement and aircraft storage trends and considers
the outlook for the current stored fleet of commercial aircraft. The
March 2015 and the September 2012 White Papers are available on the
Avolon website: www.avolon.aero
Among the major conclusions reached in this 2015 White Paper are:
-
The patterns of retirement behaviour have not materially changed since
2012, with average retirement age stable at or around 25 years and
more than 50% of fleets remaining in service beyond 25 years
-
Premature retirement of aircraft at significantly younger ages
continue to be isolated occurrences
-
The average retirement age of most fleets has continued to increase
over the past two years
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Nearly 85% of stored in-production aircraft return to active flying,
compared to only 30% of out of production types and less than 25% of
stored aircraft over 15 years old
-
Overall, almost 40% of the current stored fleet (800 aircraft) are
expected to return to active service
-
Fewer than 200 incremental stored aircraft (less than 1% of the global
active fleet) could also be re-activated in response to sustained
lower fuel prices
-
The potential for deferred retirements linked to cheaper oil is
estimated between 150 and 200 aircraft per annum
-
The resulting impact on new deliveries equivalent to no more than 5%
to 10% of production, which OEMs are well-placed to manage
Dick Forsberg, Avolon’s Head of Strategy and author of the study
comments:
“This paper further develops Avolon’s Thought Leadership agenda,
which is dedicated to sharing with the industry our analysis and insight
relating to important topical issues. This new paper combines an update
of what became a hotly debated subject in 2012 with a detailed
investigation into the movement of aircraft into and out of storage
facilities. It validates our view that the average retirement age of an
aircraft remains stable at around 25 years. The paper also determines
that, in response to a sustained period of lower fuel prices, fewer than
200 incremental aircraft could potentially return to operation and a
similar number may see retirement deferred - extremely small numbers in
the context of the global fleet.”
ENDS
About Avolon
Headquartered in Ireland, with offices in the United States, Dubai,
Singapore and China, Avolon provides aircraft leasing and lease
management services. Avolon had an owned, managed and committed fleet of
235 aircraft serving 49 customers in 28 countries as of December 31,
2014. Avolon is listed on the New York Stock Exchange, under the ticker
symbol AVOL.
Forward-Looking Statements
This press release includes forward-looking statements, beliefs or
opinions. These forward-looking statements involve known and unknown
risks and uncertainties, many of which are beyond our control and all of
which are based on our management’s current beliefs and expectations
about future events. These and other important factors, including those
discussed in the White Paper and under “Item 3. Key Information—Risk
Factors” included in our Annual Report on Form 20-F filed with the U.S.
Securities and Exchange Commission on March 3, 2015, may cause our
actual events or results to differ materially from any those expressed
or implied by the forward-looking statements contained in this press
release. We expressly disclaim any obligation or undertaking to update
these forward-looking statements contained in this press release unless
required to do so by applicable law.
www.avolon.aero
Copyright Business Wire 2015