airlines going bust

[stab3.5up]

Does the number of airline failures affect at all the costs of leasing a/c ?

[Cyrano]

Potentially, in two ways:
1. the increase in the number of off-lease aircraft (e.g. A320s) means that lessors may be willing in some cases to accept lower lease rates to get the aircraft earning money again. Having said that, some failures (e.g. Spanair) were on the cards for a while so lessors have had time to go out and remarket the aircraft "just in case".
2. The tougher economic situation and the resulting number of failures may make some lessors a bit more strict on how high a security deposit they ask for from "dodgier" or start-up airlines.

That's just my €0.02.

C.

[racedo]

As Cyrano says....

Also Lease companies will know where all of their planes are at any point in time and if a quarters / months lease payments missed then they will use various legal means to get a hold of the aircraft.

They will have a pretty good idea of how each airline is performing, forget the financial figures they just ensure they fully up to date on local knowledge.