Founded in 2020, the American Association of Aircraft Lessors (AAAL) is a new trade association that represents the aircraft and engine leasing industry in the United States.
Based in Washington D.C., our association is committed to advancing tax and regulatory policies that will help bolster the vitality and global competitiveness of America’s aircraft leasing industry.
The United States is the birthplace of aviation and the aircraft leasing industry. Our members represent American companies in the aircraft leasing space. AAAL’s policy initiatives are focused on post coronavirus recovery efforts, dual-taxation treaties, and streamlined regulations at the Department of Transportation and the Federal Aviation Administration. Our aim is to be the main interface for our members to interact with policymakers at the federal and state level.
What is Aircraft Leasing
The commercial aircraft leasing industry is an integral part of the airline ecosystem by providing funding, flexibility, and opportunity to operators around the world. Aviation finance and leasing companies own over half of all commercial aircraft operating worldwide. A large percentage of new planes manufactured by Boeing and Airbus are purchased by leasing companies and leased to the airlines. Leasing companies come in all shapes, sizes, specialties.
Airlines also depend on leasing companies for “sale-leaseback” transactions whereby the airlines sell aircraft and or engines to leasing companies. These sale-leasebacks in return give the airlines instant capital, as well as the flexibility of keeping the aircraft in their fleet. The airlines then use the capital generated from these transactions for a multitude of reasons including, paying for infrastructure improvements, funding the acquisitions of future aircraft, as well as other operational and capital expenditures.
Economic Impact
The airline leasing industry provides financing for half of all planes in the commercial airlines’ fleet.
Aircraft leasing companies allow the airline industry to reduce their risk exposure to extreme demand fluctuations and also to expand their capacity in a cost-effective way. They also reduce the capital necessary for new airline entrants to enter and remain in the market, which bolsters competition, keeps prices down for the American consumer, the global consumer, and helps to expand and maintain service to smaller markets.
According to the University of Wisconsin, the airline leasing industry is responsible for 1.6 million jobs in the U.S. airline and U.S. aircraft manufacturing industries and is responsible for one percent gross domestic product (GDP) of the United States.
American Association of Aircraft Lessors
1055 Thomas Jefferson Street, NW
Suite 400
Washington, DC 20007
