Downturn may compel airlines to return aircraft, says aircraft-leasing firm, BOC Aviation

Asia's biggest aircraft-leasing company, BOC Aviation, has said that as global travel growth slows this year, the risk of airlines returning aircraft is only likely to increase. In a  Bloomberg Television interview broadcast in Singapore today,  BOC Aviation's chief executive officer, Robert Martin, said,

''When we get to the end of the summer period that is the dangerous time for the market, when the northern hemisphere high-traffic period comes to an end.''

 ''There's no doubt we're seeing some slowdown in the growth in the market,'' he added.

The aircraft leasing market is likely to remain depressed this year, with larger number of aircraft becoming available along with the collapse of airlines around the world. Around a dozen carriers have folded up over the past six months, unable to withstand higher jet fuel prices. Economic slowdown, not just in the US, but also globally, coupled with higher fares and inflation may all lead to a slowdown in air travel and compel a shut down of more airlines.

Of BOC Aviation's customers, so far just one, Ohio-based Skybus Airlines Inc. has filed for bankruptcy and ceased operations.

Asian budget carriers,  PT Adam Skyconnection Airlines and Oasis Hong Kong Airlines Ltd folded up this year. Other Asia-Pacific carriers, Qantas Airways Ltd and China Southern Airlines Co have said they plan to jettison routes as they struggle with soaring jet-fuel prices that have nearly doubled over  the past year.

Singapore-based BOC Aviation owns and manages 82 aircraft, and has another 73 planes on order.