Expectations of Higher Rentals in 2008 Contrasts With Market Fragility

Lease rentals for 2008 were expected to remain reasonably static but Aircastle, one of the new lessors on the block, has reportedly indicated that it expects to secure higher rentals and longer terms this year.

The lessor reports that the company expects to secure 5-10 percent higher lease rentals in 2008 for the 15 aircraft that are due to see lease renewals. The term of the leases are seen as rising to seven years. In 2007, the company saw rate increases of 17 percent and terms of five years.