ISTAT ASIA Singapore was held on October 11-13, 2022
APAC airlines eye used aircraft to meet short-term demand
By Naomi Neoh, Air Transport Reporter Asia for Cirium Dashboard
During a panel discussion at ISTAT Asia in Singapore on 12 October, Cebu Pacific Air’s chief financial officer Mark Cezar pointed to “a serious opportunity, where even someone like us would tap used aircraft.”
Seeking reliability, the Philippine low-cost carrier had been taking only brand-new jets to support its high-cycle, high-density configuration operations.
If ever there was a time we could consider taking on used aircraft, it would be to add capacity on a short-term basis, and we’re talking two to three years here.
Mark Cezar
IndiGo’s chief aircraft acquisition and financing officer Riyaz Peermohamed says that with the current shortage of aircraft, the Indian budget airline might delay phasing out older aircraft as part of its fleet-renewal strategy but would not go so far as to source used aircraft.
We need more aircraft and engines. India is a growth market, it’s all poised for growth and everything looks good. Just that we can’t have enough aircraft that are more fuel efficient and give you an advantage in this high-fuel-price environment.
Riyaz Peermohamed
“With shortage of aircraft, we might have to hold on to [our] older ones a little longer until manufacturing catches up and give us enough of the newer ones,” Peermohamed adds.
VietJet Air’s director of aircraft fleet planning, acquisition and financing Danny Ta Quang Ngoc says the Vietnamese airline has added a few used aircraft, even amid the Covid-19 pandemic, and has also taken deliveries from Airbus this year.
Passenger traffic is booming in the airlines’ respective markets, but the panel warned that rising interest rates, exchange-rate volatility and fuel prices posed challenges.
Cezar highlights the need for the Asia-Pacific region “to be more prepared for the inevitable ramp-up when China reopens.”
Further Reading:
ISTAT Asia Key Takeaways: Lessor chiefs wary of potential for further consolidation
ISTAT Asia Key Takeaways: Lessors see challenges in secondary market as recession looms
This article was originally published in Cirium Dashboard. Get the view from the top with Cirium Dashboard, to understand key drivers affecting the commercial air transport industry and proactively address changes in the market.
