China’s lessors are returning to their offices, while the lessors around the world are forced to work from home due to the coronavirus pandemic. The travel restrictions and lockdown have affected the air travel of many leasing executives around the world, whereas china’s leasing executives are flying again.
Many executives are now flying and a chief executive of a Chinese lessor said that he is traveling and so are his friends and they are not facing any issues. He also said that the aviation market is very strong now as the country is the most reliable place for lessors to do business and for careers to fly.
Normally, the travel is limited for the Chinese executives, as the enterprises are controlled by the state and it’s a normal practice to limit their overseas travel. Now that the lockdown is lifted, they are back on the road, but still, they are facing the financial challenges caused by the pandemic.
The executives are starting to work from offices again. He said that, even though the careers are getting affected, many of our customers have the support of the government, so they can maintain the cash flow. They can get financial help by withdrawing money from the bank or using other ways, so it’s not difficult for them to pay the rent. But, other companies are not in a similar situation and could find it hard to pay the rent.
According to the chief executive of Shanghai-based lessor, the banks are willing to help the companies, but for this, they have to trigger a default, which they are reluctant to do. They don’t want to get a bad reputation and lose the public’s trust.
Ryan Guo has adopted a more conservative approach due to the crisis, even though he was planning to grow the company’s portfolio this year. The company has given all its aircraft, which are seven, on lease to the airlines. They wanted to grow the business and reach out to more international customers, but due to the crisis, they are focusing more on the local airlines. This is the approach most of the country’s lessors are taking.