Rentals Buffeted by Turbulent Recovery

There continues to be a misperception that the turboprop market has remained immune to the wider problems caused by the Covid Event because domestic markets may have avoided total shutdown. Yet, this is not necessarily the case. Some domestic markets have been severely affected because of a government ban on non-essential travel even within the country as with the UK. Moreover, many domestic markets are dependent on international tourism. Some countries, such as China and the USA, have been able to see a restoration of domestic travel but such examples of traffic restoration are the exception rather than the rule. This means that it has not been possible for lessors to maintain lease rentals or transfer aircraft to different jurisdictions. Despite the negatives, used turboprop aircraft have been leased in reasonable quantities.