Flurry of Activity in Aviation Leasing
2018-11-16 14:18 Friday
Due to surging maintenance costs, many airlines have opted to lease rather than purchase aircraft, spurring growth in the aviation leasing market. is Recent projections state that the commercial aircraft leasing market will grow at a robust CAGR of 6.33% over the next five years.
Attracted by the promise of future growth, Toronto-based private-equity firm Almada Inc. has invested $60 million USD to launch an aircraft leasing company.
The new company will initially purchase four commercial aircraft, including one B737-800, one A321, and two Q400s, focusing on narrow body aircraft aged from 8-10 years. The fleet is expected to grow to 12 aircraft in the near future with an investment of $11-15 million USD. The company plans to lease its fleet primarily to airlines, as well as government agencies, cargo companies, and NGOs.
Atlas Air Worldwide Holdings, Inc. recently delivered its twentieth B767-300 converted freighter to Amazon, which will serve Amazon's domestic air network ahead of the peak holiday season to meet growing customer demand.
"Our delivery of 20 aircraft to Amazon over the last 28 months is a significant achievement. It is an accomplishment that we are very proud of and for which our employees worked hard. We appreciate Amazon's confidence in our capabilities, global scale and operating excellence," said William J. Flynn, President and Chief Executive Officer.
Chorus Aviation Inc. signed an agreement to lease four new ATR72-600's to the Lion Air Group. The first aircraft delivery will be conducted by the end of 2018, with the remaining three in the first and second quarters of 2019. The aircraft are expected to be utilized by the Lion Air Group in Indonesia and Malaysia.
This transaction marks the second multi-aircraft leasing transaction in the fast-growing Southeast Asia region, helping Chorus expand its portfolio to to 12 countries and 78 total aircraft.
"We are very pleased to add Lion Air to our portfolio, expanding our global network of customers in line with Chorus' vision to deliver regional aviation to the world," said Steve Ridolfi, President, Chorus Aviation Capital. "We are proud to have earned the trust of exceptional customers and continue to evaluate multiple opportunities as we expand our leasing business." Edward Sirait, Chief Executive Officer, Lion Air Group said, "We are delighted to start this new relationship with Chorus, as a lessor."