Avolon CEO Says Greener Airlines Should Pay Less To Lease Planes

www.oann.com | 6/20/2017 | Staff
Night987Night987 (Posted by) Level 3
DUBLIN (Reuters) – Airlines with the best environmental scores should pay less for leasing aircraft than more polluting competitors, the head of one of the world’s top leasing companies said on Monday.

The radical proposal from Dublin-based Avolon comes as aviation firms face mounting scrutiny over climate policies not only from environmental groups but also investment funds that monitor Environmental, Social and Governance (ESG) performance.

Avolon - Aircraft - Lessors - Claims - Industry

Avolon, one of the top three aircraft lessors, claims to have one of the industry’s youngest and most efficient fleets.

“But that narrative is not good enough for the next 1, 2, 3 or 4 years,” Chief Executive Domhnal Slattery warned.

Bond - Investors - €?E - Strategy - €?ESG

“More and more of our major bond investors are keen to understand what our ‘E’ strategy is within ‘ESG’. We in turn are keen to understand when underwriting our airline credits what their ‘E’ strategy is,” he told Reuters.

Slattery predicted that lessors, which depend heavily on access to funds to run their capital-intensive businesses, would in future exert more pressure on airlines.

Time - Airlines - Score - Lease - Rates

“You could see over time that airlines that have a better environmental score could get lower lease rates,” he said.

“You could absolutely see that aircraft financiers like us that have a much better ‘E’ score from the investors’ perspective get tighter priced bonds, so everybody is aligned.”

Avolon - Idea - Practice - Industry - Officials

Avolon has not yet put the idea into practice but leasing industry officials say environmental scores or indices for airlines could be on the horizon.

Aviation accounts for 2-3% of greenhouse-gas emissions, and if left unchecked emissions are expected to rise as passengers and flights increase.


The industry...
(Excerpt) Read more at: www.oann.com
Wake Up To Breaking News!
Never under estimate the power of the people, especially when they are a stupid mass!
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!