Aircraft lessors wary as rivals crowd in

[ISTANBUL] Aircraft leasing companies voiced confidence in steady jetliner demand, but warned new aviation investors that they may take a painful hit when central banks start unwinding their efforts to stimulate the economy.

Deterred by poor returns elsewhere as interest rates remain at rock bottom, new money has been pouring into aviation in the hope of capturing greater profits thanks to a combination of ample liquidity and demand for jets.

"Established lessors have enjoyed a positive interest rate environment but at the same time, the industry has been a magnet for money," said Steven Udvar-Hazy, chief executive of Air Lease Corp, seen as a founder of the jet leasing industry.