Global aircraft leasing companies are reassessing their risk appetite for China amid heightened tensions with the US and in the wake of big losses following the grounding of planes in sanctions-hit Russia.
Some international lessors have begun to reduce their exposure to the country, industry executives and analysts said. Friction between the US and China, coupled with uncertainty over war risks surrounding Taiwan, were adding to wider concerns over geopolitical risk, they added.
China is the world’s single largest market for airline lessors, according to aviation consultancy Cirium, with almost 20 per cent of their global portfolio leased to operators within the country, and it is forecast to remain a critical market for the aviation industry.