The global commercial aircraft leasing market is set to reach $315.9 billion by 2033, growing at a cumulative annual growth rate (CAGR) of 7.3% from 2023.
Nigeria is poised to be a significant player in this expanding market, with over a dozen local airlines including Air Peace, Arik Air, and Ibom Air negotiating aircraft acquisitions and leases to bolster their operations.
While some Nigerian carriers prefer outright aircraft purchases, others are exploring various leasing models to align with their business strategies. Ibom Air, for instance, has opted for an acquisition-by-partnership model, financing their fleet with Nigerian banks rather than leasing.This surge in aircraft demand comes as Nigerian airlines solidify relationships with global lessors and navigate the challenging business environment.
The Nigerian Civil Aviation Authority (NCAA) is processing numerous applications for new scheduled carriers, reflecting the sector’s growth.
Despite these developments, challenges remain, including maintaining fidelity in lease payments and ensuring compliance with international standards. The Nigerian government’s efforts to improve relations with major aircraft lessors like Airbus and Boeing aim to mitigate these hurdles.
The global leasing market’s growth is driven by factors such as aviation globalization, cost-efficiency pursuits, market deregulation, and the rise of low-cost carriers.
Experts anticipate trends like fleet modernization and increased air travel demand will continue to propel the industry forward, with leasing providing strategic flexibility for airlines.
Overall, Nigeria’s participation in the growing aircraft leasing market signifies a positive trajectory for its aviation sector, promising economic benefits and enhanced global connectivity.