Air lessor worries about overproduction

    The head of one of the world’s largest aircraft leasing companies said he is nervous over the prospect of plane manufacturers Airbus and Boeing increasing production by up to 50 percent in the next few years, according to a report over the weekend from Dow Jones Newswires.
    “The production increase plans make me very nervous,” said Stephen Hannahs, chief executive of Aviation Capital Group (ACG), which leases more than 250 planes. “This is different than any other cycle I’ve experienced.”
    ACG, which is a unit of Pacific Life Insurance Co., is one of the top five global lessors, and has a $6 billion order book of more than 100 aircraft through 2019.
    Lessors account for ownership of about 40 percent of the global aircraft fleet, and control 60 percent of the Airbus A320 and Boeing 737 fleets, the report said.