Aircraft and Ships
Information as of March 31, 2022.
Aircraft and Ships
Business
Leasing and asset management services for aircraft and ships
| Assets (Share of total) | ¥684.1 billion (6%) |
|---|---|
| Profits (Share of total) | -¥2.3 billion (-0.4%) |
Overview
Expertise Acquired over Four Decades
Aircraft business: We entered the aircraft financing business in 1978 and entered the aircraft operating lease business with the establishment of an aircraft leasing company in Ireland in 1991. In addition to leasing owned aircraft, we provide domestic and overseas investors with asset management services including aircraft investment arrangements and aircraft sale and re-lease.
Moreover, in 2018 we took a 30% stake in Avolon Holdings Limited, the world’s third-largest aircraft leasing company.
Ship business: ORIX entered the ship leasing business in 1971 and has owned ships since the 1980s, investing in ships and chartering them to Japanese and international shipping companies. We have accumulated a wide range of know-how related to ship financing, the management and operation of ships we own, and ship trading and brokerage.
Strengths
Aircraft Business
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Aircraft sourcing ability and high-quality asset management services
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Avolon’s business model of ordering from aircraft manufacturers
Ship Business
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Operations and management (ORIX Maritime)
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Diversified revenue sources including lease revenue, investment gains, and asset management fees
Challenges
Aircraft Business
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Sophisticated risk management in the cyclical aircraft market
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Adding promising human resources
Ship Business
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Attracting personnel familiar with operations and management during a global shortage
Opportunities
Aircraft Business
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Increased use of leasing among airlines and increase in low-cost carriers
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Greater demand for aircraft remarketing and asset management
Ship Business
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Increased logistics demand
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Investment to reduce the environmental burden of shipping
Risks
Aircraft Business
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Decrease in passenger demand due to a global economic slowdown, war, terrorism, or infectious diseases
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Airline bankruptcies
Ship Business
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Decrease in the volume of trade due to accelerating protectionism (decrease in volume of goods shipped internationally)
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Decrease in investor demand due to a global economic slowdown
Revenue Opportunities for Aircraft and Ships
Comparative Aircraft Leasing Business Overview
