Aircraft Lessor Delivered 15 Planes In Quarter

Aviation Capital Group, one of the world's Top Tier aircraft lessors, reported its activity for the third quarter on Monday.

ACG ended the quarter with the delivery of the first of two new Airbus A330-200s to Avianca Airlines, the national carrier of Colombia. The airplane was delivered September 30; the second will be delivered in November.

All told, the company handled transactions -- purchases, and new or extended lease agreements for 15 aircraft, most of them Boeing 737s. The company also handled four transactions for A320 Family aircraft, as well as the sale of a Boeing 727 to an unidentified customer.

ACG also reported orders it placed at the recent Farnborough International Air Show for the quarter. Those included 25 shipsets of CFM-56 engines for $325 million, as well as 25 sets of V2500 turbofans at over $400 million, both types for Airbus A320 aircraft. The company also placed a $1.8 billion order for 23 Airbus A320s, as well as a $934 million order for 15 Boeing 773-700s.

The aircraft orders place ACG second among the world's lessors with a backlog of A320s and 737s, according to the company.

"ACG continues its solid performance for the year," said R. Stephen Hannahs, group managing director and CEO of ACG. "These orders fit our business model of taking the long view through turbulent times, a benefit we have with our own management outlook and the ownership of a financially solid and conservative parent company. ACG is on track for its 19th consecutive profitable year. Our investment-grade credit rating remains unchanged despite the turmoil in the capital markets, an endorsement of our business strategy and conservative business model."

Aviation Capital Group is owner/lessor and portfolio manager of a diversified fleet of commercial jet aircraft leased to the world's leading airlines. Its portfolio includes 234 aircraft leased to 93 airlines in 40 countries with an additional 155 aircraft on order with Boeing and Airbus.

FMI: www.aviationcapital.com