Avolon expects $4 trillion of capital to transform global jet fleet

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Avolon expects $4 trillion of capital to transform global jet fleet

Avolon expects to transform its global jet fleet with the purchase of a Boeing 737 MAX aircraft, which lands during an evaluation flight in Seattle.

Over the next 20 years, global aviation needs $4 trillion of capital to finance new commercialshipments and transform the world's fleet, the leasing firm Avolon said on Tuesday.

By 2042, airline and leasing companies will take delivery of 44,300 commercial passenger aircraft, of which about half will be for replacement and half for growth, the world's third-largest aircraft lessor said.

By 2042, the world's commercial passenger aircraft fleet is expected to grow to 46,880 aircraft, according to the Dublin-based firm.

To reach the goal, the industry needs to decouple its environmental impact from strong travel demand, which is set to grow at an expected 3.5% compared to GDP growth of 2.5%.

The rapid progress of commercial aircraft is at odds with its environmental objectives, environmentalists say.

Avolon said the main focus should be on expanding the supply of sustainable aircraft fuels.

The industry will attract the capital required to drive aircraft's sustainability transition, the industry said, adding that a growing industry would attract the necessary capital.

The growth will be dominated by narrow-body jets like the Boeing 737 MAX and the Airbus A 320 neo.

Avolon said European Airbus will stay ahead of the narrow-body market with its current 53% share of the fleet rising to 58% by 2042. With a market share of 59%, Boeing will maintain its dominance in the widebody market.

It also forecasted a renaissance for the smaller turboprop.

The current age of such planes means that more turbprops will be delivered in recent years than regional jets - a reversal of the trend over the past 25 years that could attract new entrants with innovative designs, Avolon said.

China is pursuing a new turboprop, while Brazil's Embraer has already put plans for its own turboprop on hold. The market is currently dominated by the French-Italian ATR.