DUBLIN - The world's No. 2 aircraft lessor SMBC Aviation Capital expects the recovery of air travel both to, from and within China to dominate aviation this year with global recessionary risks localized, Chief Executive Peter Barrett said on Wednesday.

"I think we'll see both domestic and cross-border traffic out of China increasing rapidly and I think this will have a significant updraft on our industry in terms of demand for aircraft," Barrett told the AirFinance Journal conference in Dublin.

"I think there are some potential recessionary challenges, but I think they will be more localized," he added.

(Writing by Conor Humphries, editing by Padraic Halpin)