Total Capital Raised By The Leasing Company Reaches $5 Billion

International aircraft leasing group Avolon said Wednesday in a trading update announcing that its fleet now exceeds 160 aircraft and that total capital raised has reached $5 billion.

The company reported that from April to September of this year, it has delivered 24 aircraft, valued at over $1.1 billion to twelve customers across the globe including seven new customers. Additionally, the company:

• Announced an order for 15 Airbus A320 neo and 20 Boeing 737 MAX aircraft - Avolon is one of the first major lessors to secure attractive early delivery slots in the launch phase of both of these highly fuel-efficient new technology aircraft.
• Delivered the first four of its direct order Boeing 737-800 NG aircraft and announced a further order for 10 737-800 NGs to support Avolon’s near-term growth plans.
• Successfully completed the sale of two aircraft on long-term leases to two new investor clients.
• Total committed fleet has increased to 164 aircraft (160 owned and 4 managed).
• Secured financing commitments from three new lending banks – Avolon now has a global lending group of 22 institutions.
• Committed capital now stands at US$5.0 billion (US$1.4 billion equity and US$3.6 billion debt).
• Strengthened the Avolon team with 5 new hires bringing its total team to 42 people across 6 offices globally.

“Our progress in building a leading global aircraft leasing platform continues to accelerate," said Dómhnal Slattery, Avolon CEO. "In the two and a half years since launch we have built the world’s youngest lessor fleet comprising over 160 young, fuel-efficient aircraft, including an order for 35 new technology Airbus A320 neo and Boeing 737 MAX aircraft. Alongside our recent new order activity we have continued to remain very active in the sale and lease-back market; in the third quarter alone we underwrote over $800 million of new aircraft financing for carriers in the United States, Europe and Asia covering single-aisle and twin-aisle aircraft that will deliver later this year and in 2013."

“This impressive growth has been built on the back of our robust capital position and the continued strong support of our owners and lenders. We continue to see attractive investment opportunities for well-capitalised lessors with the global reach and execution capability to capture them. We remain firmly on track to build Avolon into one of the world’s leading aircraft leasing businesses.”

In June, Avolon celebrated the delivery of its first Boeing 737-800 NG direct to JAL Express. This was followed by two further units for JAL Express and a new delivery to China Eastern Airlines. The company also completed its first aircraft sales with the successful delivery of two aircraft on long-term leases to two new investor clients.

FMI: www.avolon.aero