Hong Kong, May 31 -- "Mainland Chinese banks are very active although they are primarily focusing on their domestic market plus a handful of selected international carriers and lessors," said NordLB's Frank Wulf in the Airline Economics Aviation Industry Leaders Report.

"Asian banks outside of China also are fairly active, especially the Japanese who are being very aggressive in pricing in order to win new business."

Other trends in the sector include rising demand for wet leasing, where several new airlines are customers in this space, and an increasing airline practice of buying aircraft, selling them to banks and then leasing them back, Reuters said.

The Asia-Pacific is the second largest aircraft leasing market in the world after I...