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Excess supply - how hard is it to recycle a jumbo jet?

Graham Watson

17th August 2021

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This is a fascinating insight into the market for jumbo jets, with current estimates that nearly 40% of all jets are currently sat idle

How might markets react?

Well, over-supply should drive down the costs of leasing planes, and the price of parts too.

However, for the firms who own planes this might be disastrous: the returns on owning a plane have collapsed and for many firms, scrapping planes, and selling their parts has become more profitable than actually leasing them.

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.