Aircastle "Building A Significant Relationship" With SAA

The first of six new Airbus Model A330-200 aircraft scheduled for delivery this year has been accepted by South African Airways ("SAA"), according to aircraft broker Aircastle.  The aircraft will be equipped with latest-generation Rolls-Royce Trent 772B engines. 

Debt financing for this purchase was arranged and provided by Sumitomo Mitsui Banking Corporation and supported by a guarantee from Compagnie Francaise d'Assurance pour le Commerce Exterieur (COFACE), the French export credit agency.  This debt bears interest at a rate of 3.78% per annum and will be repaid over twelve years.

"We are building a significant relationship with South African Airways and are proud to support its fleet modernization program with these six new A330-200s," said Ron Wainshal, Chief Executive Officer of Aircastle, announcing the delivery Monday. "These aircraft will provide the airline with significant improvements in fuel efficiency and operating costs and its passengers with a comfortable, state-of-the-art cabin."

"With this delivery, we're beginning to benefit from approximately $700 million of attractive built-in asset growth from our Airbus program over the next 15 months," Wainshal added. "This expansion of our asset base -- combined with approximately $500 million of new investments we completed during 2010 -- positions us to grow our earnings in 2011 and beyond.  With our strong balance sheet and proven access to diverse sources of capital, we are poised to pursue new transaction opportunities and capitalize on the steadily improving demand for passenger and cargo aircraft."

FMI: www.aircastle.com