Lease Rentals Experience Massive Fall

The lease rentals can be expected to fall even further than values in the short term. The lessors will seek to stave off the clamouring for rent reductions as much as possible but there has to be a measure of realism. Leases could be extended for 3-6 months or rates increased slightly to compensate for rental holidays if so agreed. With governments providing financial support for so many airlines, there may be backlash should it be noticed that taxpayers may be effectively paying lease rentals instead of providing basic financial support to airline employees. Equally, the lessors will be less responsive to the demands of lessees for lease rental holidays should tens of millions of dollars in dividends be paid to shareholders during this crisis. Lessors will be less enthusiastic in repossessing aircraft due to the difficulty in actually physically relocating aircraft between countries that may be subject to severe restrictions. Employees may be put at risk.