As the world continues to deal with the fallout of the COVID-19 pandemic, some companies, including airlines, are taking advantage of new opportunities presented to them. Around the world, several airlines have either gone out of business or severely downsized.
This not only opens up market possibilities, but it also makes airframes and the associated equipment available for other carriers to pick up on the open market.
Most airplanes are actually owned by leasing companies, not by the airlines themselves. This gives the airlines flexibility to manipulate their fleets based on market needs and demands, and it allows a leasing company to have multiple options to place its metal should a customer no longer be in a position to meet the terms of a lease. It also helps lenders feel better about their loans being repaid, so the loans to a leasing company will likely be a little cheaper than to an airline—not an insignificant detail when the collateral is a $70 million to $100 million jet.
Recently, United Airlines announced plans to acquire 20 or so Airbus A-320 aircraft that were flying under the Easy Jet banner in Europe. The airplanes will be converted to United cabins and paint schemes, but then placed in long-term storage until demand justifies bringing them to service. This is a win-win, because the airline gets what amounts to some spare fleet options, as well as to the parts on the airplanes. The leasing company will get paid, but United will likely pay far less than it would have a year ago thanks to the glut in supply, and when demand rebounds as the vaccines for COVID gain traction, United will be able to recover more quickly.
Similar transactions will take place all over the planet. Norwegian Air Shuttle is terminating its long-haul operation, which is going to put a number of fuel-efficient Boeing 787s on the market. South African Airways has shut down, so its entire fleet is available.
Speaking of South African, its demise will create a vacuum that will need to be filled with service to Johannesburg and Cape Town from various international hubs. This could be a win for both the South African economy and the passengers who might want to travel there.
The airplanes that don’t get picked up right away will likely be put into storage or cannibalized for parts. Engines, seats, windows, even light bulbs or tray tables will be scavenged and put to use. In time, this will bring the issues of supply and demand back into equilibrium, and it will allow the industry to return to normalcy—and profitability—more quickly, and both will accelerate society’s climb from the depths of the pandemic.—Chip Wrightзайм в вебманибыстрый займ омскпай пасс займ займ на контакткашалот займзайм 100000