Analysts divided over impact of 737 MAX, Jet crises on lease rentals

Are Indian airlines paying more for leasing aircraft due to the global grounding of the Boeing 737 MAX aircraft and Jet Airways’ entire fleet of aircraft not being operational?

While leasing companies are categorical that there has been no impact of these two events on the cost of leasing, analysts give a different perspective.

Timothy Ross, Head, Investors Relations, of leasing company BOC, said: “There is very little spot business done in the aircraft leasing market. I am not sure if it would be correct to say that there has been a massive increase in premium for aircraft due to the grounding of the MAX or due to Jet Airways temporarily ceasing operations. The reality is that leasing rates have not hardened.”