Lessors are strengthening their portfolios to take advantage of the travel rebound, with regional aircraft lessor TrueNoord acquiring 10 E-Jets from Nordic Aviation Capital (NAC) and Macquarie passing another milestone in its 72-aircraft acquisition from ALAFCO.
“We envisage more portfolio transaction opportunities,” TrueNoord CEO Anne-Bart Tieleman said. “There will be further trades in the lessor-to-lessor environment. We are already exploring opportunities.”
After two years of “relative silence” in aircraft transactions, Tieleman said TrueNoord has completed a deal to acquire eight Embraer E190s and two E175s from NAC, increasing its portfolio to 70 aircraft. This fits with the lessor’s plans to grow in the 50- to 150-seat market.
Integration of the 10 E-Jets is expected to be finalized in the 2023 first quarter (Q1), adding new customers in North America, Canada and South Africa. “We anticipate that groundwork laid by this transaction will spearhead further deals in the future,” TrueNoord Chief Commercial Officer Richard Jacobs said.
Meanwhile, ALAFCO’s shareholders have approved the sale of 73 aircraft to Macquarie AirFinance for $2.2 billion. The portfolio comprises 21 Airbus A320neos, 16 A320ceos, 10 Boeing 737NGs, five A350s and a single 777, plus 20 737 MAXs scheduled for delivery between 2024 and 2026. The aircraft are currently leased to 18 airlines in 14 countries.
“Completion is expected during 2023, following the satisfaction of customary closing conditions,” Macquarie said.
The deal will be funded by a $1.65 billion facility, underwritten by BNP Paribas, Citibank, MUFG Bank and Natixis, along with up to $600 million in new equity from Macquarie AirFinance’s shareholders. Macquarie AirFinance is owned by Macquarie Asset Management (50%), Dutch pensions financier PGGM Infrastructure Fund (25%) and Australia Retirement Trust (25%).
Macquarie AirFinance currently has a portfolio of 189 aircraft on lease to 77 airlines in 47 countries and an order book of 59 A220-300s and A320neos.
Lessor Altavair may also be on the lookout for aircraft acquisitions after securing $1.15 billion in additional funding from U.S. investment firm and shareholder KKR. Altavair has a diverse range of new and used commercial aircraft, ranging from E170s to 747s. KKR said the financing, sourced from credit and infrastructure funds, will be used to expand its portfolio of leased commercial aircraft.
“Airlines are increasingly seeking greater liquidity and fleet flexibility, which is creating significant opportunities,” KKR partner and head of North American infrastructure Brandon Freiman said.
With banking group Standard Chartered now looking to sell its aviation unit, including lessor Pembroke, there are investment opportunities out there. Pembroke has clients across Africa, Asia, Europe, the Middle East and North America.
“We believe that a new owner can drive the next phase of growth whilst we continue to focus on our commitment to improve shareholder returns and delivering on our 2024 targets,” Standard Chartered CEO of corporate, commercial and institutional banking Simon Cooper said.
In a Jan. 17 research note, research firm Jeffries said some lessors are taking used aircraft to mitigate delivery delays from Airbus and Boeing, as airlines seek to maintain their summer 2023 schedules.
