AerCap Holdings

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

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Introduction

This study on AerCap Holdings is part of our coverage of the top 10,000 global companies. It is created and updated at a faster pace to guarantee the most recent content available.

Premium members of the website have full access to the study on AerCap Holdings, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis and a myriad of additional high value sections.

We identify potential new products and services, forecast future market trends, and prognosticate synergies between AerCap Holdings and other organisations, apart from the sections that are driven by analysis.

Company Description

AerCap Holdings is a global leader in aircraft leasing headquartered in The Netherlands. Founded in 1996, the company provides aircraft leasing, financing, management, and advisory services to customers in over 100 countries. Their main products and services include aircraft leasing, trading, parts supply, engine leasing, and financial services. AerCap Holdings serves the airline, government, and corporate markets.

Industry Overview

AerCap Holdings operates in the aircraft leasing industry, which is estimated to be worth $60 billion in 2020. The company employs over 1,900 people in a range of countries across the world, including the US, UK, Ireland, Singapore and China. Aircraft leasing involves renting out aircraft to airlines, allowing them to grow their fleet without the need to purchase aircraft outright. This is a key part of the airline industry, and AerCap is a major player in this space.

Industry Classification

In terms of formal classification, Platform Executive has tagged AerCap Holdings as a business operating within the Other Transportation industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Aircraft financing and related methods
Patent ID: 10,875,817
Date: January 21, 2020

Patent Title: Aircraft financing and related methods
Patent ID: 10,829,921
Date: November 19, 2019

Patent Title: Aircraft financing and related methods
Patent ID: 10,788,038
Date: October 15, 2019

Patent Title: Aircraft financing and related methods
Patent ID: 10,680,749
Date: June 18, 2019

Patent Title: Aircraft financing and related methods
Patent ID: 10,665,450
Date: May 28, 2019

Patent Title: Aircraft financing and related methods
Patent ID: 10,634,851
Date: April 23, 2019

Patent Title: System and method for collecting and analysing data
Patent ID: 10,599,824
Date: March 19, 2019

Patent Title: Aircraft financing and related methods
Patent ID: 10,584,764
Date: March 5, 2019

Patent Title: System and method for collecting and analysing data
Patent ID: 10,491,741
Date: November 6, 2018

Patent Title: System and method for collecting and analysing data
Patent ID: 10,478,869
Date: October 16, 2018

Major Products & Services

The main products and/or services commercialised by this business include the following:

Aircraft Leasing: AerCap offers aircraft leasing services, including operating and finance lease, lease management and remarketing services.
Aircraft Financing: AerCap provides aircraft financing services, including secured debt financing, structured finance, and sale and leaseback transactions.
Engine Leasing & Financing: AerCap offers engine leasing and financing services, including engine leasing, financing, and remarketing services.
Parts & Inventory Management: AerCap provides parts and inventory management services for aircraft, engines, and other aircraft components.
Maintenance & Engineering Services: AerCap offers maintenance and engineering services, including aircraft maintenance and engineering support.
Aviation Software Solutions: AerCap offers a variety of aviation software solutions, including aircraft management and portfolio management software.

Key Competitors

We have identified the following organisations as being key competitors:

GECAS
Air Lease Corporation
Avolon
Aircastle
SMBC Aviation Capital
BBAM
BOC Aviation
CIT Aerospace
Jackson Square Aviation
ALAFCO Aviation Lease and Finance Company

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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: Airlines, aircraft leasing companies, aircraft operators, and other aviation customers.

2. Suppliers: Suppliers of aircraft parts and components, aircraft manufacturers, and other aviation suppliers.

3. Employees: Pilots, mechanics, administrative staff, and other personnel employed by AerCap or its subsidiaries.

4. Governments: Governments of countries where AerCap operates, and related regulatory bodies.

5. Shareholders: Investors in AerCap's publicly traded equity.

6. Banks and Financial Institutions: Banks providing financing and other financial institutions providing services to AerCap.

7. Credit Rating Agencies: Agencies providing ratings of AerCap's creditworthiness.

8. Business Partners: Service providers, technology partners, and other business partners.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like AerCap Holdings different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand AerCap Holdings and its position within the marketplace.

AerCap Holdings is a leading aircraft leasing company. It leases aircraft to airlines, government agencies, and other commercial customers. It offers a wide range of aircraft leasing products and services, including short-term, medium-term, and long-term leases. AerCap Holdings also offers aircraft sale and purchase options, aircraft management services, and aircraft financing products.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Experienced and Diversified Leadership: AerCap has a highly experienced, knowledgeable and diverse leadership team from across the aviation industry. This team has extensive knowledge and experience, enabling AerCap to effectively manage its portfolio and provide innovative solutions for customers. 2.Strong Financial Position and Global Reach: AerCap has a strong financial position, with access to capital from a variety of sources, including debt, equity, and export credit facilities. This provides AerCap with the ability to make strategic investments and manage its portfolio in different markets. Additionally, AerCap has a global presence with offices in more than 20 countries, allowing it to serve customers all over the world. 3.Advanced Technology Platform: AerCap has developed an advanced technology platform that enables it to manage its portfolio in a more efficient and cost-effective manner. The platform also provides access to real-time market data, allowing AerCap to make informed decisions regarding the management of its portfolio. 4.Extensive Portfolio of Assets: AerCap has one of the largest and most diversified aircraft portfolios in the industry, with nearly 1,300 aircraft owned, managed, and on order. This provides AerCap with a deep understanding of the aviation market, enabling it to make informed decisions on investments and portfolio management. 5.Strong Customer Relationships: AerCap has a strong track record of providing excellent service to its customers, resulting in long-term relationships with many of the world’s leading airlines and lessors. This allows AerCap to provide tailored solutions for its customers, enabling it to remain competitive in the market.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Airlines
Aircraft Leasing Companies
Financial Institutions
Governments
Investment Funds
Manufacturers
Maintenance, Repair, and Overhaul (MRO) Providers
Corporate Entities
Helicopter Operators
Aircraft Trading Companies

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Increasing Demand for Fuel-Efficient Aircraft: As global environmental standards become increasingly stringent, the demand for fuel-efficient aircraft is likely to increase, which could benefit AerCap Holdings. With its fleet of over 1,500 aircraft, AerCap Holdings could take advantage of this trend and increase its market share by investing in modern aircraft that are more fuel-efficient than their predecessors.

Growing Preference for Leasing Aircraft: The global market for aircraft leasing is expected to rise over the next few years, driven by the cost-effectiveness of leasing and the increasing availability of aircraft. As one of the largest aircraft leasing companies in the world, AerCap Holdings will be well-positioned to capitalise on this trend.

Expanding Global Air Traffic: With an increasing number of people travelling by air each year, the demand for aircraft is expected to rise, which could be an opportunity for AerCap Holdings to increase its fleet size and generate additional revenues.

Growing Need for Aircraft Maintenance and Repair Services: As aircraft age, the need for maintenance and repair services is likely to increase. This could be an opportunity for AerCap Holdings, as the company offers a comprehensive range of maintenance and repair services across its global network.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for AerCap Holdings include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="AER.US" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Aircraft Financing Solutions: AerCap Holdings could offer financing solutions to airlines or aircraft owners to help them purchase or lease aircraft.

Aircraft Maintenance and Support Services: AerCap Holdings could provide maintenance and support services for aircrafts, such as engine and airframe inspection and repairs, avionics upgrades, and other related services.

Aircraft Leasing Services: AerCap Holdings could offer aircraft leasing services to airlines or aircraft owners, providing them with short-term and long-term leasing options.

Aircraft Insurance Services: AerCap Holdings could offer aircraft insurance services to airlines or aircraft owners, helping them protect their investments.

Aircraft Consulting Services: AerCap Holdings could provide consulting services to airlines and aircraft owners to help them make informed decisions about their aircraft investments.

Aircraft Exchange Services: AerCap Holdings could offer an aircraft exchange service, allowing airlines and aircraft owners to trade their aircraft with each other.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Boeing - AerCap is the world's largest independent aircraft leasing company and has a long-term strategic partnership with Boeing.
2. Avolon - Avolon is a leading global aircraft leasing company and has a significant partnership with AerCap.
3. Air Lease Corporation - Air Lease Corporation is another leading aircraft leasing company and has a significant partnership with AerCap.
4. GECAS - GECAS is a leading global aircraft leasing and aviation finance company and has a strategic partnership with AerCap.
5. CIT Group - CIT Group is a leading aircraft financing provider and has a partnership with AerCap.
6. Rolls Royce - Rolls Royce is a leading aircraft engine manufacturer and has a strategic partnership with AerCap.
7. Airbus - Airbus is a leading aircraft manufacturer and has a partnership with AerCap.
8. Air France-KLM - Air France-KLM is a leading airline group and has a partnership with AerCap.
9. FlightSafety International - FlightSafety International is a leading aviation training provider and has a strategic partnership with AerCap.
10. Pratt & Whitney - Pratt & Whitney is a leading aircraft engine manufacturer and has a partnership with AerCap.

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

The Porters 5 forces for AerCap Holdings are as follows:

1. Suppliers: AerCap Holdings has a good relationship with its suppliers and is able to negotiate favorable terms.

2. Buyers: AerCap Holdings has a large customer base and is able to negotiate favorable terms with its customers.

3. Competition: AerCap Holdings faces significant competition from other aircraft leasing companies.

4. Threat of substitutes: There are no close substitutes for the services provided by AerCap Holdings.

5. Threat of new entrants: The aircraft leasing industry is capital intensive and has HIGH entry barriers.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: AerCap Holdings' customers are mainly airlines, aircraft financing and leasing companies, and other aviation-related companies.

Actors: The main actors involved in AerCap Holdings' operations are its customers, shareholders, employees, suppliers, and government regulatory agencies.

Transformation process: AerCap Holdings is a global aircraft leasing and financing company that provides customers with access to the latest aircraft and financing solutions. AerCap Holdings' transformation process involves providing customers with the necessary financing and leasing solutions to acquire, operate, and manage aircraft.

World view: AerCap Holdings views the aviation industry as a dynamic and growing sector that is essential to the growth of the global economy. Its mission is to provide customers with access to the latest aircraft and financing solutions that will enable them to grow their businesses and succeed in the global aviation industry.

Owners: AerCap Holdings is a publicly traded company listed on the New York Stock Exchange. The company's shareholders are mainly institutional investors, such as banks, pension funds, and mutual funds.

Environmental constraints: AerCap Holdings is subject to a variety of environmental regulations and laws, both from the United States and from other countries in which it operates. Additionally, the company is subject to the fluctuations in global demand for aircraft and financing solutions, as well as to other macroeconomic factors.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the AerCap Holdings business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. AerCap has a large and diversified customer base consisting of over 200 airlines from around the world.

2. AerCap has a strong balance sheet with over $15 billion in assets and a strong liquidity position with over $5 billion in available cash.

3. AerCap has a young and modern aircraft portfolio with an average age of less than five years.

4. AerCap has a well-established global network of offices and personnel, providing comprehensive services to its customers.

Opportunities

Below is a list of opportunities we have identified for the business:

1. AerCap Holdings should focus on developing long-term relationships with aircraft manufacturers in order to gain access to the best prices and options for fleet modernization. This could be done through deep discounts, exclusive partnerships, and early access to the newest aircraft models.

2. AerCap Holdings should also focus on expanding its global footprint. This could be done by increasing its presence in emerging markets, such as the Middle East and Asia, and by expanding its existing network of leasing and financing operations. This would allow AerCap to take advantage of the growing demand for aircraft in underserved markets.

3. AerCap should also invest in digital transformation. This could include developing and implementing AI-driven analytics solutions, as well as leveraging the power of the cloud to streamline operations and reduce costs.

4. Finally, AerCap should focus on streamlining its operations and optimizing its processes. This could include implementing more efficient inventory management solutions, as well as leveraging predictive analytics to ensure that the right aircraft are in the right place at the right time.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of Diversification: AerCap relies heavily on the aviation industry, which makes it susceptible to economic downturns.

2. Concentration of Customers: A large portion of AerCap's revenue comes from just a few customers, which makes it vulnerable to changes in their business.

3. High Debt Levels: AerCap has a large amount of debt, which can make it difficult to weather economic storms.

4. Seasonality of Business: The aviation industry is highly seasonal, which can lead to fluctuations in AerCap's financial results.

Threats

Below is a list of the threats we have identified for the business:

1. Volatility in the aircraft leasing market: The aircraft leasing market is subject to volatile fluctuations in demand and pricing, which can adversely affect AerCap Holdings' profitability.

2. Competition from major players: AerCap Holdings faces competition from larger companies such as Air Lease Corporation, Avolon, and GECAS. These companies have greater market share and larger financial resources, which can pose a threat to AerCap Holdings' ability to remain competitive.

3. Regulatory changes: The aviation industry is heavily regulated, and AerCap Holdings must be aware of and comply with any changes in regulations that could potentially restrict their operations.

4. Technological advances: The aviation industry is quickly embracing new technologies, and AerCap Holdings must stay abreast of the latest advancements to remain competitive. Failure to do so could lead to a competitive disadvantage.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for AerCap Holdings. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to AerCap Holdings, as well as areas where the company needs to improve its operations or strategy.

Company: AerCap Holdings is a global aircraft leasing company based in the Netherlands, with offices in the US, China, and Ireland. They specialise in leasing and remarketing of commercial aircraft, and they also provide engine and component leasing, as well as aircraft portfolio management services.

Collaborators: AerCap Holdings works with several airlines, including American Airlines, United Airlines, and Delta Air Lines, to acquire and manage aircraft. They also collaborate with engine and component manufacturers, such as Pratt & Whitney, to provide services such as engine and component leasing.

Customers: AerCap Holdings’ customers are mainly airlines, but they also serve other aircraft leasing companies, financial institutions, and aircraft investors.

Competitors: AerCap Holdings’ main competitors are GECAS, Air Lease Corporation, and SMBC Aviation Capital.

Content: AerCap Holdings provides a wide range of aircraft leasing and remarketing services. They provide aircraft leasing services to airlines, engine and component leasing, aircraft portfolio management services, and remarketing of commercial aircraft to airlines, financial institutions, and aircraft investors.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged AerCap Holdings as having an innovation score of C2.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on AerCap Holdings forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

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Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 6th June 2023

Industry Keywords

Related keywords:

Aircraft Financing Leasing remarketing

BCI-Banco Credito

China Resources Power