·Trends in the aircraft leasing market
In recent years, the rise of unilateralism has clashed with the global nature of aircraft trade, led to a development trend towards internal circulation creating difficulties for the leasing sector.Forecast suggests that China will overtake North America and Europe to become the largest market for aviation services by 2043, with its market value almost tripling from US$23bn in 2024 to US$61bn in 2043.
Facing this trend, the demand for aircraft leasing in China is also expected to continue to rise in the coming years. However, the means of aircraft financing and leasing in China are relatively singular, and government tax refund policies have a direct impact on the aircraft financing and leasing industry, hence, the recent tightening of China's tax refund policies has presented significant challenges to financing and leasing enterprises that lack a diverse range of financial instruments.
·Supply Chain Status and Aircraft Value Directions
The prolonged supply chain recovery is also a concern for the value of new and used aircraft, the solutions of major airlines such as Air China, China Eastern Airlines, and China Southern Airlines regarding the supply chain issue are also hot topics of discussion in the industry.
From an international perspective, the challenges of unilateralism and the tightening of China's tax policies may exert a significant impetus for the use of the Chinese yuan in international aircraft trade settlements. This shift, if it materializes, could alter the dynamics of currency exchange and financial strategies within the global aviation market, however, the extent to which this possibility can be realized remains to be seen and requires further observation and assessment.
To address the following challenges, the 3rd Aircraft Value Management International Forum is scheduled to be held in Qingdao, Shandong Province, China, on February 27-28.
The forum will invite experts from the State Taxation Administration of China, financial departments of major airlines, aircraft value assessment agencies etc., to discuss hot topics in the industry including aircraft value trends, fleet management, introduction of second-hand aircraft, disposal of old aircraft, aviation financial leasing, and aircraft residual value protection.
