AIR TRANSPORT AND AIRPORTS
Wet-lease rates hold firm as engine availability constrains Asian fleets
Operators are renting capacity rather than parking aircraft, which keeps ACMI pricing elevated.
Aerospace Garage desk
Wet-lease pricing across Asia-Pacific has not softened as expected, and the reason is engine rather than airframe availability. Operators with aircraft grounded awaiting powerplants are renting complete capacity to protect schedules.
That behaviour is rational and expensive. ACMI unit costs run well above owned operation, but a cancelled route loses the market position as well as the revenue.
The knock-on effect reaches operators with no engine problem at all, who now compete for lease capacity against carriers using it as a stopgap.
What to watch: spare-engine lease rates as the leading indicator. When they ease, wet-lease pricing follows about a quarter later.
Free every Friday
Aerospace Garage Weekly
Market Pulse, the nine regions and a course of the week — one email, free every Friday.
Your email address is used only to send you the free weekly edition and is never sold or shared. You can unsubscribe from any edition.