The current economic turmoil has not only affected the financial markets but has also significantly impacted the aviation industry with aircraft manufactures, financiers and operators suffering as well.

Recent decreases in overall air traffic, a decrease in airfares and rise in number of low-cost carriers has also contributed to the peril of many airlines. The success or failure of the aviation industry, which is highly cyclical, sensitive to slight economic changes, and also highly completive is directly correlated to the aircraft leasing market which has shown significant growth in recent times.

Despite the troubles that haunt the aviation industry, leasing companies have remained very profitable as many airline operators have opted to take advantage of the falling interest rates and postpone the purchase of new aircrafts in favor of taking them on lease.

Furthermore, many airlines have taken the opportunity to enter the leasing industry to rent out their excess capacities. With airlines facing a lack of liquidity, leasing has provided the needed mechanism to bolster their liquidity position and strengthen their balance sheet.

Our KPMG team provides audit, tax and advisory services to significant number of aircraft leasing transactions.