HOW TO RECYCLE A PLANE
"Airlines may decide they are good at operating aircraft, but
less good than financial institutions at managing aircraft as
assets,' said the president of Citicorp Industrial Credit, John
Dewey. Not only Latin American airlines, but domestic US supplemental
carriers have a history of taking old equipment on short-term leases,
from, for example, International Air Leases of Miami, which is only now
making the transition from four-engined 707s to Boeing 727s.
To what extent can stronger airlines and new equipment become drawn
into this way of doing business?
The world's two leading aircraft operating lease companies are
International Lease Finance Company (Beverly Hills) and Guinness Peat
Aviation (Shannon, Ireland), which once leased mainly older aircraft to
less wellknown carriers. Both have made great strides in the past two
years.
ILFC ordered 12 new-technology 737-300s early in 1984. GPA
followed with an order for 12...
