Oasis Leasing successfully renegotiates Air Canada leases

The aircraft involved are an A319, an A321 and two Canadair Regional Jets.

Although Oasis Leasing has not disclosed details of the agreements, because of client confidentiality, the company said the new contracts were satisfactory for both parties and that Air Canada has recommenced payment under the restructured terms.

News of the renegotiated leases comes just two weeks after Oasis Leasing announced it had returned to profitability. For the first half of 2003, the company posted a net profit of AED 3.4 million, compared with a net loss of AED 8.5m for the whole of 2002.

"There are signs that the business cycle is beginning to rebound," said Dixon, CEO, Oasis Leasing. "The cost of leasing aircraft has fallen sharply in recent years but this trend may be coming to an end - at least for smaller and newer jets."

Industry figures show that passenger volumes have bounced back in those geographic areas hardest hit in the recent past, including North America and Asia. A number of the traditional "full service" airlines are restructuring and no-frills carriers, like easyjet, Ryanair and Jet Blue are expanding their fleets due to continued healthy demand for low-cost travel.

"Carriers are increasingly focusing on leasing as the preferred means of funding aircraft purchases, rather than using their own equity or borrowing money," said Dixon.

"The accelerated activity in a number of sectors is creating significant business opportunities. When we have successfully raised additional capital for investment we will be well-placed to move quickly to capitalise on the increasing industry demand and deliver enhanced profitability for our shareholders."