Avolon CEO warned about higher lease rates as interest rates rise

The head of the world’s second-largest aircraft leasing company warned airlines on Thursday May 5 of higher lease rates and declared “the game is up” on below-cost financing as interest rates rise.

“Lessors have been unbelievably accommodating during the crisis out of necessity (and) we now need to recover our P&Ls,” Avolon Chief Executive Domhnal Slattery told the Airfinance Journal conference in Dublin.

He also said that Boeing had “lost its way” and might need new leadership to fix a company culture that had become “totally warped”.

The comments by Avolon Chief Executive Domhnal Slattery represented a rare public rebuke of Boeing by a significant customer, albeit one that canceled orders for over 100 737 MAX jets during the COVID pandemic.

Boeing did not immediately respond to an emailed request for comment.