Why Aircraft Leasing is the Future of Scandinavian Business Aviation

The Scandinavian business aviation market has experienced significant growth in recent years, driven by the increasing demand for air travel and the need for efficient and flexible transportation solutions. As the market continues to evolve, aircraft leasing is emerging as a key trend that is set to shape the future of business aviation in Scandinavia.In this article, we will explore the benefits of aircraft leasing, the current state of the Scandinavian business aviation market, and why leasing is becoming an increasingly popular choice for companies and individuals in the region.

The Benefits of Aircraft Leasing

Aircraft leasing offers a range of benefits for companies and individuals looking to access business aviation services. Some of the key advantages of leasing include:

• Flexibility: Leasing allows companies to access aircraft for a fixed period, without the long-term commitment of ownership.
• Cost savings: Leasing can provide significant cost savings compared to owning an aircraft outright, as it eliminates the need for upfront capital expenditure and ongoing maintenance costs.
• Access to newer aircraft: Leasing companies often have access to newer, more efficient aircraft, which can provide a more comfortable and reliable flying experience.
• Reduced risk: Leasing transfers the risk of aircraft ownership to the lessor, freeing up companies to focus on their core business.

The Scandinavian Business Aviation Market

The Scandinavian business aviation market is characterized by a strong demand for air travel, driven by the region‘s thriving economy and growing business community. According to a report by the European Business Aviation Association (EBAA), the Scandinavian business aviation market has experienced significant growth in recent years, with the number of business aircraft in the region increasing by 15% between 2015 and 2020.However, the market is also highly competitive, with a range of operators and service providers vying for market share. In this context, aircraft leasing is emerging as a key differentiator for companies looking to access business aviation services.

Aircraft Leasing in Scandinavia

Aircraft leasing is becoming increasingly popular in Scandinavia, driven by the region’s growing business aviation market and the need for flexible and cost-effective transportation solutions. According to a report by the aviation consulting firm, Ascend by Cirium, the Scandinavian aircraft leasing market is expected to grow by 10% per annum over the next five years, driven by increasing demand for business aviation services.There are several factors driving the growth of aircraft leasing in Scandinavia, including:

• Increasing demand for business aviation services: The Scandinavian business aviation market is experiencing significant growth, driven by the region’s thriving economy and growing business community.

• Limited access to finance: The global financial crisis has made it more difficult for companies to access finance, making leasing a more attractive option.
• Growing awareness of leasing benefits: Companies in Scandinavia are becoming increasingly aware of the benefits of leasing, including flexibility, cost savings, and access to newer aircraft.

Case Studies

There are several examples of companies in Scandinavia that have successfully used aircraft leasing to access business aviation services. For example:

• Norwegian Air Shuttle: The Norwegian airline has used leasing to access a range of aircraft, including Boeing 737s and Airbus A320s.
• SAS Group: The Scandinavian airline has used leasing to access a range of aircraft, including Airbus A320s and A330s.
• PrivateFly: The private jet charter company has used leasing to access a range of aircraft, including Gulfstream G650s and Bombardier Challenger 850s.

Leasing of Aircraft for Smaller Companies or Private Owners

Leasing of aircraft is not only a viable option for large corporations, but also for smaller companies or private owners, such as flying schools, universities, and private individuals. These entities often require access to aircraft for specific purposes, such as training, research, or personal transportation, but may not have the financial resources to purchase an aircraft outright. Leasing provides a cost-effective solution, allowing them to access the aircraft they need without the significant upfront capital expenditure. Additionally, leasing companies often offer flexible lease terms, which can be tailored to meet the specific needs of smaller companies or private owners.

For example, a flying school may lease a fleet of training aircraft, such as Cessna 172s or Piper PA-28s, to provide students with a modern and reliable training platform. A university may lease a research aircraft, such as a Gulfstream GIII or a Cessna 421, to conduct atmospheric research or to transport researchers to remote locations. Private individuals may lease a personal aircraft, such as a Cirrus SR22 or a Beechcraft Bonanza, for recreational flying or to transport family and friends. Leasing companies can provide these entities with access to a wide range of aircraft, from single-engine piston aircraft to multi-engine turbine aircraft, and can offer a range of services, including maintenance, insurance, and operational support, to ensure that the aircraft is operated safely and efficiently.

Conclusion

Aircraft leasing is emerging as a key trend in the Scandinavian business aviation market, driven by the region’s growing demand for air travel and the need for flexible and cost-effective transportation solutions. With its range of benefits, including flexibility, cost savings, and access to newer aircraft, leasing is becoming an increasingly popular choice for companies and individuals in Scandinavia.As the market continues to evolve, it is likely that aircraft leasing will play an increasingly important role in shaping the future of business aviation in Scandinavia. Whether you are a company looking to access business aviation services or an individual looking for a flexible and cost-effective transportation solution, aircraft leasing is definitely worth considering.