Aircraft leasing is on the rise in Central and South America as considerations of cost, efficiency and security prompt increasing numbers of airlines to join leasing programs.

Regional economic growth has boosted passenger traffic and demand for more air services has led airlines to expand operations. Airlines aiming to circumvent huge investment outlays on aircraft purchase are choosing to lease instead.

California firm Air Lease Corp., one of the major operators in the area, announced it acquired 12 new aircraft in response to continuing lease placements, many of them in Latin America.

ALC Executive Vice President Marc Baer said, "ALC remains focused on growing our global customer base by providing customized fleet planning solutions for each of our airline partners.

"These lease placements illustrate our continued progress toward achieving ALC's goal of 100 aircraft in our fleet by the end of 2011," he added.

The company has been leasing to airlines in Asia and Europe. Recently it leased two Brazilian-made Embraer 190 LRs to Aeromexico. Colombia and Brazil were among other countries contracted for aircraft lease to enable to operate more services. The company leased an Airbus A330-200 to the Avianca airlines in Colombia, and a Boeing 737-800 Brazil's Gol Airlines.

ALC, launched in 2010, has headquarters in Los Angeles. Concerns over costs related to owning aircraft have led to a global growth in aircraft leasing, now estimated to be worth several billion dollars a year.

A World Aircraft Leasing Market report in September looked at a range of commercial jets, regional jets and business jets now competing for business in a growing global market.

Business has grown also in East Asia and the Middle East. But one notable difference with Latin America is that many of the aircraft being leased are locally manufactured, in particular smaller jets produced by Brazilian aircraft manufacturer Embraer.

At least 315 companies are known to be operating in the market, the report said.

These include many key and niche players such as International Lease Finance Corp., GE Commercial Aviation Service, CIT Aerospace, RBS Aviation Capital, Babcock and Brown Aircraft Management LLC, Ansett Worldwide Aviation Services, Aviation Capital Group Corp., Boeing Capital Corp., AerCap Group, MacQuarie Aircraft Leasing Services, BOC Aviation Pte Ltd., ALAFCO Aviation Lease and Finance Company KSCC, BAE Systems Plc., BCI Aircraft Leasing, Inc., and SAAB Aircraft Leasing.

The international leasing companies are still a small number when compared with U.S. operators, known to be in excess of 8,000. The U.S. National Business Association argues "safety, security, convenience and productivity are key reasons why individuals and companies choose on-demand air travel for personal and business travel."