||AIR LEASE CORPORATION
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ALE-2013-06 787-9 AND 787-10
Founded in February 2010. Airplane leasing company.
2000 Avenue of the Stars, Suite 600N
Los Angeles, California 90067, USA
July 2010: Air Lease Corporation (ALE) is a new airplane leasing corporation being launched by industry pioneer, Steven Udvar-Hazy and longtime aviation executive, John Plueger. They have secured initial financing of $3.3 billion and airplane acquisitions are underway. Steven Udvar-Hazy, Chairman and Chief Executive Officer (CEO), co-founded and led International Lease Finance Corporation (ILFC) for 37 years.
After launching his Air Lease Corporation (ALE) with an order for 51 A320s and A321s, Steven Udvar-Hazy announced that (ALE) has agreed to buy Embraer regional jets and ATR turboprops, the first time he has entered that market segment. (ALE) also revealed it has placed 54 firm orders with Boeing (TBC) for the 737-800, including six options, for delivery in 2012 worth a combined $4.6 billion.
Udvar-Hazy confirms that he’s been looking at the E-Jets for about a decade, and believes now is the right time. John Plueger, Air Lease (CEO), notes that “this airplane has migrated from a regional jet to a mainline airliner” and that the company already has strong airline demand for the airplane. The deal for up to 20 Embraer E190s includes 10 firm orders, five re-confirmable options and five further options. Embraer (CEO), Frederico Curado notes that this deal and others signal “the market is picking up” after two difficult years; and, he adds, “it is a sustainable recovery.”
Udvar-Hazy said the deal for 10 ATR 72-600s (with +10 more options) comes after discussions with more than a dozen airlines. In part, he says, (ALE) wants to leverage the fact that some of its mainline customers for narrow bodies also have subsidiaries that serve regional
routes. The first of the ATR 72-600s is due for delivery in
November 2011, making (ALE) one of the first customers for the airplane.
As for the 737-800s, Udvar-Hazy says the deal represents the "largest single order at the Farnborough airshow" and continues the company's strategy to build up its mid-range, narrow body fleet. The 737-800 "will be a significant part of our portfolio, and we have also picked up some other 737-800s from outside Boeing (TBC)," says Udvar-Hazy. "We have committed to getting, or have already acquired, some 25 additional 737-700/800s." "We have selected the Boeing Next-Generation 737-800 as a cornerstone of our growing commercial airplane lease fleet. The 737-800 represents an opportunity for our wide range of airline clients to operate this most economical, fuel efficient and versatile 150/189-passenger airplane on a wide variety of airline missions profitably," Udvar-Hazy said.
Air Lease (ALE), which was founded in February 2010, has also ordered A320s in this category, and is discussing acquisition of an unspecified family of wide body airplanes. "The negotiations concern a Boeing (TBC) product," Udvar-Hazy adds.
The talks are backed by healthy funding, including $3 billion of liquidity in long-term financing and debt equity. The company also has access to $1.5 billion in revolving equity, plus bilateral funding agreements with five banks.
The company is said to be looking at A330-200s and 777-300ERs as well.
August 2010: Air France (AFA) is selling, and then leasing back, one 777-300ER, A330-200 and four A320 family airplanes to Steven Udvar-Hazy’s new Air Lease Corporation (ALE). Some of the planes, including the 777, are new and haven’t yet been delivered. (ALE), managed to raise more than >$3 billion in capital in its bid to quickly build a large new portfolio of airplane assets from scratch.
November 2010: SEE ATTACHED "AIRLINE BUSINESS" INTERVIEW - - "ALE-CHMN-2010-11-A/B/C/D/E/F."
January 2011: Air Lease Corporation (ALE) mandated (KfW) (IPEX)-Bank as arranger and sole lender in a seven-year commercial debt financing of one new A321-200 operated by Air Berlin (BER).
March 2011: Air Lease Corporation (ALE) (CEO), Steven Udvar-Hazy, whose statements on airplane programs have long carried significant weight, said Boeing (TBC)'s 737 replacement solution will likely include a larger airplane offering for which the twin-aisle concept makes sense. According to the "Seattle Times," he told reporters at the International Society of Transport Aircraft Trading conference in Phoenix that he believes the upper end of Boeing (TBC)'s new family will be a 757-size jet with more than >200 seats. (TBC) insiders said earlier this month that (TBC) is moving "far more aggressively" toward a 180 - 250 seat twin-aisle replacement for the 737.
While he does believe a 757-size airplane will be part of (TBC)'s 737 replacement program, he asserted (TBC) will offer a two-airplane solution that will also include a single-aisle model with a baseline of 150 seats. Then-Boeing Commercial Airplanes President & (CEO), Scott Carson said in 2007 that (TBC) was conducting trade studies on two fuselage widths and could offer the market two solutions with common cockpits, wings and engines. This concept is not new, and in fact was floated as the Low Cost Modular Airplane by a McDonnell Douglas engineer in August 1997.
Udvar-Hazy told the "Seattle Times" that, "based on historical performance and just their (DNA)," Boeing (TBC) will build a new airplane family that will "address the next 25 to 30 years of airline demands."
However, he was not as bullish on the 787, noting that "the research-and-development cost has skyrocketed" and "the break-even point has moved far, far to the right." He said (TBC) will likely have to sell 1,500 787s before it breaks even on the troubled program.
Regarding Airbus (EDS)'s decision to launch the re-engined A320neo, Udvar-Hazy said the move was forced by insufficient funding to launch an all-new airplane. He warned that the A380's ongoing production costs, plus the development of the A350 and the A400M, would tax (EDS)'s finances for another five years. "It will not be possible as a practical matter for (EDS) to launch a completely new airplane," he told reporters, according to the "Seattle Times."
Udvar-Hazy commented that the A320neo is a threat to (TBC) in the short term and predicted the company would work more incremental improvements into the 737NG.
May 2011: Aeromexico (AMX) leased two 737-800s from Air Lease Corporation (ALE). The leases run until mid-2017.
June 2011: Air Lease Corporation (ALE) announced it signed lease agreements for 20 additional airplanes.
(ALE) will lease 10 new airplanes to Alitalia (ALI), comprising five Embraer E175s and five E190LRs under 12-year leases. SriLankan Airlines (LNK) will lease three new A320-200s, one of which was delivered in May; the remaining two airplanes will be delivered in October and November on 12-year leases. S7 Airlines (SBR) is leasing three new A320-200s for eight years, which will be delivered in January, February and May 2012. Kenya Airways (KEN) has entered into an eight-year lease agreement for three new Embraer E190ARs, scheduled for delivery in August and September, and May 2012. (ALE) acquired one A320-200 (1686), on lease to Spring Airlines (CQH).
Air Lease Corporation (ALE) signed lease agreements for 25 additional airplanes as it focused on “providing innovative fleet solutions for airlines around the world,” said (ALE) Senior VP, Kishore Korde.
According to (ALE), it has entered into a long-term lease agreement with TRIP Linhas Aereas for six new ATR 72-600s and six new Embraer E190LRs for delivery between July 2011 and October 2012. (ALE) is leasing four new Embraer E190s to Bulgaria Air, with deliveries set for March, April, June and November 2012. (ALE) signed a 12-year lease agreement with Garuda Indonesia Airlines (GIA) for a new A330-200, and is leasing an additional new A330-300 to Asiana Airlines (AAR) for delivery in September 2012.
Previously unannounced from prior quarters, (ALE) said it acquired seven additional 737-800s on lease to six operators, comprising two to Hainan Airlines (HNA) and one each to Shanghai Airlines (SHA), Caribbean Airlines (TTA), Sun Express (SNS) (Turkey), Xiamen Airlines (XIA), and Sunwing (SWG) (Canada).
Boeing (TBC) announced at the Paris Air Show that Air Lease Corporation (ALE) will purchase up to 33 airplanes. The agreement calls for 14 firm orders and four options for Next-Generation 737-800s, as well as five 777-300ERs (Extended Range) and four 787-9 Dreamliners. (ALE) also agrees to exercise options on six airplanes from last year’s 60 737-800 order. The five (GE90-115B)-powered 777-300ER airplanes will begin delivery in 2013.
July 2011: Air Lease Corporation (ALE) announced that Thomas Cook Airlines (JMA)/(GUE) signed long-term lease agreements for six new A321-200s powered by (CFM56) engines. Two of the airplanes will be delivered in 2013 and four in spring 2014. The airplanes are part of (ALE)’s existing order book with Airbus (EDS), it said.
August 2011: Air Lease Corporation (ALE) delivered the first of six (CF34)-powered Embraer E190s on lease to (TRIP) Linhas Aereas.
(ALE) announced new lease placements and acquisitions of Boeing airplanes, including a long-term lease agreement with XL Airways Germany for one 737-800 currently on lease to Air Berlin (BER), slated for delivery in March 2012. Additionally, (ALE) acquired 11 737-800s, leased to Continental Airlines (CAL) (2), Skymark Airlines (SKM) (2), Ethiopian Airlines (ETH) (2), Travel Service (TFS) (1), Xiamen Airlines (XIA) (1), Shanghai Airlines (SHA) (1), Sun Express (SNS) (1) and Sunwing (SWG) (1).
“These lease placements and acquisitions are important steps in achieving our balanced fleet growth plan,” (ALE) President & (COO), John Plueger said. “(ALE) will continue to build the depth and global diversity of our 737-700/800 customer base.”
The lessor finalized an order for 14 737-800s, plus four options, and five 777-300ERs earlier in the month and continues to work with Boeing (TBC) to finalize an agreement for the purchase of four 787-9s announced at this year’s Paris Air Show.
September 2011: Air Lease Corporation (ALE) announced the addition of three VPs, Chi Yan, Michael Bai and Jenny Van Le. (ALE) said the three new appointments bring a combined 27 years of experience in airplane leasing from (ILFC) (ILF).
October 2011: Air Lease Corporation (ALC) concluded lease placements of 12 airplanes: one new A330-300 leased to Asiana Airlines (AAR), two new 737-800s leased to Korean Airlines (KAL), two new Embraer E190LRs leased to Aeromexico (AMX), one 737-800 leased to Air Berlin (BER), two A320-200s leased to Vueling (VUZ), one A330-200 leased to Avianca (AVI), one A330-200 leased to Thomas Cook (JMA), one 737-800 leased to GOL (GOT) and one 737-700 leased to Southwest Airlines (SWA).
(ALE) said it is seeing “continued progress” toward its goal of achieving 100 total airplanes in its fleet by the end of the year. It reported a fleet size of 65 airplanes as of June 30.
November 2011: Air Lease Corporation (ALE) took delivery of its first ATR 72-600 and confirmed the airplane will be operated by (TRIP) Linhas Aereas. The Brazilian regional airline will also operate the next five ATR 72-600s delivered to (ALE) to support the expansion of its domestic network to new destinations, as well as adding capacity and more frequent routes in growing markets.
(ALE) was the first USA lessor to purchase new ATRs with an order for 10 new ATR 72-600s and options for an additional 10 during the July 2010 Farnborough International Airshow. (ALE) converted two of the options into firm orders in September.
Air Lease Corporation (ALE) has signed lease agreements for 13 additional airplanes. (ALE) said it placed two Embraer E175s, leased to Belavia (BLR); four ATR 72-600s, leased to Passaredo (PDO) (Brazil); and two A320-200s, leased to S7 Airlines (SBR), from its order book.
(ALE) leased one 737-800, leased to Caribbean Airlines (TTA); one 737-800, leased to Transaero (TRX); and one 737-800, leased to Sun Country (SCA), from its fleet. (ALE) acquired on lease one 737-800, leased to Spicejet (ROJ), and one A320-200, leased to Interjet (AAE).
December 2011: Boeing (TBC) finalized an order with Air Lease Corporation (ALE) for four 787-9s. (ALE) also exercised options for four 737-800 NextGens. The order, worth more than >$1.2 billion, marks the completion of an agreement announced during the Paris Air Show in June.
The airplanes join the 74 737-800s and five 777-300ERs that (ALE) has on order.
According to Boeing (TBC), the order increases the number of 787-9s on order to 270 airplanes from customers located all over the world. The 787 family has a total of 825 orders.
January 2012: AirFrance Industries (AFI)/(KLM) (E&M) has completed maintenance checks, repainting and modifications on two 737-800s under a contract from Air Lease Corporation (ALE). The airplanes have been delivered to new lessees, Caribbean Airlines (TTA) and Transaero Airlines (TRX).
April 2012: International Lease Finance Corporation (ILFC) (ILF) and its parent, the American International Group (AIG) have filed a civil lawsuit in a Los Angeles court against Air Lease Corporation (ALE) and its Chairman & (CEO), Steven Udvar-Hazy, as well as a number of other top (ALE) executives, seeking damages that it said may reach “several hundreds of millions” of dollars “or more.”
(ILFC) said in the court filing that Udvar-Hazy, the Founder & (CEO) of the airplane lessor until his 2010 departure to launch (ALE), stole “confidential trade secret information” and used it to quickly establish (ALE) as an (ILFC) rival.
(ILFC) claimed in the lawsuit, “Before resigning their employment, [Udvar-Hazy and fellow] former (ILFC) executives engaged in massive downloading and theft of (ILFC)’s confidential trade secret information (several thousand electronic files). These files were then loaded en masse onto (ALE)’s servers. Forensic analysis shows further that many of these files became the blueprint for customer communications, contracts, pricing, marketing and other strategies upon which (ALE) built its business.”
(ALE) rejected the lawsuit as “baseless,” saying in a statement, “Unable to compete effectively and perceiving (ALE) as a growing threat, (AIG)/(ILFC) has now resorted to a baseless trade secrets lawsuit that (ALE) will vigorously contest and defeat.”
(ALE) has a portfolio of more than >100 airplanes, launched an Initial Public Offering (IPO) in 2011 and Udvar-Hazy continues to have huge influence on commercial airplane manufacturers. (ILFC), however, said this success is owing to its claim that Udvar-Hazy “unlawfully stole this business from (ILFC).”
(ILFC) said, “We regret having to file this suit, but the defendants’ misconduct left us no choice but to go to court to protect our rights and the rights of our shareholders, including our largest shareholder, the American taxpayer.” The Federal Reserve Bank of New York and the USA government spent more than >$180 billion bailing out an insolvent (AIG) in 2008 and 2009, and the USA government is still its largest shareholder.
Before departing (ILFC), Udvar-Hazy attempted to put together a group to buy the lessor from (AIG), but ultimately decided parting ways was the best option. (AIG) acquired (ILFC) in 1990, 17 years after Udvar-Hazy launched the Los Angeles-based company.
(ALE) has purchased eight 787-9s Dreamliners, which it will lease to Vietnam Airlines (VIE). The 787-9s are scheduled to be delivered in 2017 and 2018.
(ALE) also announced it purchased a 777-300ER from Macquarie Aviation; the 777-300ER is on a long-term lease to Emirates (EAD), which is a new customer for (ALE).
(ALE) also announced the following airplane placements: One A330-200 for (KLM) to be delivered in 2013; one A330-300 to Sichuan Airlines (SIC) to be delivered in 2013 and an A319 four-year lease extension; and one Embraer EMB-190 for Mozambique carrier (LAM), to be delivered this year.
May 2012: Air Lease Corporation (ALC) has executed transactions covering 11 twin-aisle airplanes and two single-aisle airplanes. It purchased eight new 787-9 airplanes for lease to Vietnam Airlines (VIE) (delivering in 2017 and 2018); purchased one 777-300ER from Macquarie Aviation on long-term lease to Emirates (EAD); one incremental A330-200 on long-term lease to (KLM) (delivering 2013); one A330-300 on long-term lease to Sichuan Airlines (SIC) (delivering in 2013); a four-year extension from Sichuan (SIC) on one A319 on lease from (ALE); and one Embraer E190 leased to (LAM) (delivering in 2012).
June 2012: Air Lease Corporation (ALE) has acquired one 2009 777-300ER, which it will lease through 2022 to Cathay Pacific Airways (CAT), a new customer for (ALE).
(ALE) President & (CEO), John Plueger called the deal “an incremental transaction for (ALE) in 2012 that is perfectly in line with our growth plan.”
(CAT) said last month it would deploy more fuel-efficient 777-300ERs on more routes and speed up the retirement of its older 747-400s as part of its plan to cut costs and reduce capacity as operating costs rise due to high fuel prices and economic uncertainty.
(ALE) has signed a firm order for 36 A320neo family airplanes, comprising 20 of the larger A321neos, plus 14 options. The deal firms up a Memo of Understanding (MOU) signed at the 2011 Paris Air Show. Delivery is scheduled from mid-2016 through 2019. Engine selection will be announced at a later date.
“The A320neo family will be a cornerstone in (ALE)’s portfolio going forward,” (ALE) Chairman & (CEO), Steven Udvar-Hazy said. The signing brings (ALE)’s Airbus (EDS) orders to 100, comprising 50 A320 family, 36 A320neo family and 14 A330 family airplanes.
Airbus (EDS) (COO) Customers, John Leahy said the airplane manufacturer is investing more than >€300 million/$374.2 million a year in the A320 family. He said more than >8,300 A320 family airplanes have been ordered and more than >5,000 delivered to more than >360 customers.
July 2012: Air Lease Corporation (ALE) will lease 12 new 737-800s, four new A320-200s, and two new A321-200s to China Southern (GUN) on 12-year lease terms.
(ALE) announced the first firm order by a leasing company for Boeing (TBC)’s 737 MAX range, inking a contract for 60 737 MAX 8 and 15 MAX 9, as well as taking reconfirmation rights on a further 25 examples across the MAX range.
Deliveries will run from 2018 - 2022 and the deal is worth $7.2 billion at list prices.
“The 737 MAX is an excellent addition to our portfolio and the ideal complement to our growing fleet of 737-800s,” (ALE) Chairman & (CEO), Steven Udvar-Hazy said. (ALE)’s current order for almost 80 737-800s will be delivered between 2012 and 2017.
Answering questions at a press conference at the opening day of the Farnborough airshow, Udvar-Hazy was reminded that as recently as March he had expressed reservations about the 737 MAX and had questioned the decision to sole-source the engine with the (CFM) International (LEAP). But Udvar-Hazy’s doubts seem to have been addressed.
“Since then, Boeing (TBC) and (CFM) have really worked hard to change the design concept,” he replied. “The engine is no longer the same engine that’s on the Airbus A320neo. It’s been customized and optimized for the MAX in terms of the core and fan diameter and is significantly better than what we saw [previously].
“Boeing (TBC) has also been working very hard on some very significant aerodynamic improvements including new wingtip configurations and around the aft fuselage to reduce drag, as well as other things to clean up the airplane.
“The airplane we looked at late last year and early this year is totally different airplane from what we’re buying today.”
There is some flexibility in the split of variants before delivery. “That’s a really important feature for us,” said John Plueger, (ALE)’s President & (COO).
Lessor, Aviation Capital Group (CGP) placed an intent to order 35 MAX airplanes in November.
August 2012: Air Lease Corporation (ALE) saw triple-digit percentage increases in its revenues and net income for the 2012 second quarter and first half.
The USA lessor posted second-quarter net income of +$28 million, up +301% compared to a +$7 million profit for the same period last year. Revenues were up +113% to $158 million. For the 2012 first half, (ALE)’s net income was up +440% to +$55 million compared with +$15.8 million for the 2011 first half. Revenues increased +124% to $290 million. Adjusted net income was +$36.7 million for the quarter and +$70.8 million for the first-half.
(ALE) grew its fleet to 137 airplanes and placed 18 airplanes with China Southern (GUN) and 13 with Air China (BEJ).
“Our lease placements continue to be in line with our expectations and we are nearing full placement of our new airplane deliveries through 2015,” (ALE) Chairman & (CEO), Steven Udvar-Házy said.
(ALE) President & (COO), John Plueger added, “Our lease terms have been trending longer, up to 12 years on both wide body and single-aisle airplanes, which locks in strong future rental revenue. Longer leases provide greater earnings visibility and less risk, with a slight trade off in future recognition of overhaul revenue for accounting purposes due to a higher number of reimbursable maintenance events that occur during the lease term. All of our leases are performing well. We successfully removed our single A320 from Kingfisher (KFH) without incurring a credit loss and that airplane has been re-leased.”
As of June 30, (ALE)’s fleet age averaged 3.3 years and remaining lease terms averaged seven years.
January 2013: Air Lease Corporation (ALE) has signed a five-year lease with Corendon Airlines (CDN) for one 737-800 airplane, which is scheduled for delivery in February. (CDN) has experienced significant annual passenger growth since the airline launched in 2005.
March 2013: Air Lease Corporation (ALE) has ordered 10 777-300ERs airplanes in an order valued at $3.2 billion at list prices.
(ALE) President & (COO), John Plueger said the order “will help us meet the growing airline demand for long-haul passenger airplanes” and “will enable our customers to grow and modernize their fleets.”
(ALE) has ordered 185 Boeing (TBC) airplanes, including 78 737NGs, 80 737 MAXs, 12 787s and 15 777-300ERs. It also has reconfirmation rights on 20 additional 737 MAX airplanes.
Boeing (TBC) has agreed to demands by operating lessor, Air Lease Corporation (ALE) to slightly increase the range, thrust requirement and gross weight of the nascent 787-10X. "It's in the works," says (ALE) (CEO), Steven Udvar-Hazy.
Previously, Boeing (TBC) had advertised the range for the double-stretch variant as between 6,700 nm/12,400km and 7,000 nm, but that fell short of Udvar-Hazy's expectation for the airplane.
In November, he told a teleconference of market analysts that he wanted (TBC)to increase the range to at least 7,100nm.
Four months later, 787-10X engine providers General Electric (GEC) and Rolls-Royce (RRC) have confirmed they both can meet the higher thrust requirement for the 7,100 nm-range level, Udvar-Hazy said.
The additional thrust is necessary because the range boost implies a slightly higher gross weight for the airplane, he added.
The official launch of the 787-10X has been slowed by the ongoing 787 battery crisis, in which the entire 787 Dreamliner fleet remains grounded due to two instances of overheating lithium-ion batteries.
However, (TBC) still expects to formally launch the 787-10X airplane later this year.
May 2013: Air Lease Corporation (ALE) has reported a +48% increase in pretax income for the 2013 first quarter and said Asia-Pacific carriers now represent almost 40% of its fleet.
(ALE)’s revenue was up +45% to $192 million compared to $133 million for the 2012 first quarter. Income before tax increased +48% to $62 million, with a pretax margin of 32%, compared to $42 million for the same period a year ago.
The lessor acquired seven airplanes, including five from its order book and two incremental airplanes, growing its fleet to 162 airplanes across 71 airlines in 41 countries.
Asia-Pacific carriers represent the largest regional concentration of (ALE)'s fleet at 39.2% based on net book value as of March 31.
(ALE) announced long-term lease agreements with Korean Air (KAL) for two new 777-300ER airplanes, which are scheduled for delivery in November 2014 and May 2015.
The 777-300ERs will be used to support (KAL)’s long-haul, twin-aisle fleet growth. “These two 777-300ERs add to the two new 737-800s already leased by (ALE) to (KAL),” Air Lease Corporation President & (COO), John Plueger said.
June 2013: Air Lease Corporation (ALE) has announced a long-term lease agreement with Etihad Airways (EHD) for one new A321-200 with sharklets, scheduled for delivery in April 2015.
Boeing (TBC) officially launched the Boeing 787-10 at the Paris Air Show. (TBC) is going ahead with the development of the 787-10 on the back of firm commitments for 102 from five different customers. The first 787-10 is to be delivered in 2018.
Among the customers launching the program are Air Lease Corporation (ALE) (30 airplanes), United Airlines (UAL) (20), British Airways (BAB) (12), Singapore Airlines (SIA) (30) and GECAS (GEF) (ten). All of the orders are new commitments except ten of the 20 (UAL) airplanes, which have been rolled over from a previous 787 order and converted into the larger version.
(ALE) also committed to ordering three 787-9 Dreamliners, the second largest version of the 787 family which is scheduled to make its first flight later this year - - SEE ATTACHED - - "ALE-2013-06 787-9 AND 787-10."
The 787-10 is a 18 ft stretch of the 787-9, allowing room for around +40 additional seats. Boeing (TBC) says it will offer room for around 300 - 330 passengers. The 787-10 will have a range of 7,000 naut mi. “The 787-10 will be the most efficient jetliner in history,” Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner said at the launch event in Paris. “The 787-10 is +25% more efficient than airplanes of its size today and more than >10% better than anything being offered by the competition for the future.”
According to Boeing (TBC), final assembly and flight tests of the 787-10 are both to begin in 2017 with first delivery scheduled for 2018. “The 787-10 will be one of the most powerful wide body airplanes for decades ahead,” (ALE) Chairman/(CEO), Steven Udvar-Hazy said. In his opinion, the 787-10 will benefit from operational and development experience gained on the 787-8 and the 787-9.
Boeing managed to overcome Hazy’s initial concerns about range by increasing it to 7,000 naut mi. Hazy said that was addressed by introducing a slightly higher maximum take-off weight (MTOW) of 553,000 pounds. Some reinforcements in the wing to body attachment area and on the landing gear were needed to accommodate the increased weight. Engine thrust will also be slightly higher than originally planned. “The range covers 97% of the wide body city pairs of the world,” Hazy pointed out. Its range will be around 1,500 naut mi more than the 787-9.
The (ALE) (CEO) believes that a lot of 777-200s and Airbus A340s will be replaced by the 787-10. (ALE) is also working with Boeing (TBC) on the 777X, but it is still too early for a launch decision according to Hazy. “It is still under design refinement,” Hazy stated.
July 2013: Jet Time (JTM) has inked a long-term contract with USA lessor, Air Lease Corporation (ALE) covering a 737-700 scheduled for delivery in November 2013, and two new ATR 72-600s scheduled for delivery in April and May 2014. (JTM) specializes in charter services and airplane, crew, maintenance and insurance (ACMI) wet-leases.
August 2013: Air Lease Corporation (ALE) has reported a second-quarter net profit of +$43 million, a +53% year-over-year jump.
ALE) announced a long-term lease agreement with airberlin (BER) for one new 737-800 airplane scheduled for delivery in February 2016, as well as lease extensions on six airplanes. The extensions average five-year additional terms on four 737-800s, one A320-200, and one A321-200.
(ALE) leased its first new airplane to airberlin (BER) in May 2010.
Airberlin (BER) (CEO), Wolfgang Prock-Schauer said recently (BER)’s fleet, which will be reduced from 170 airplanes two years ago to 143 by the end of 2013, “operates 11.4 hours daily throughout the summer. Even as we shrink the fleet, we are adding new A320 family airplanes and 737-800s.” Around 30 airplanes are on (BER)’s balance sheet. To sell some of these airplanes are a possible asset, Prock-Schauer added.
(BER) reportedly remains on track with its intensive cost-cutting program, "Turbine 2013." Prock-Schauer has been quoted in several media outlets as saying that two-thirds of the carrier’s 2013 target has been completed. Earlier this year, (BER) raised its cost-cutting goal from €400 million/$534.9 million to €450 million by the end of 2014.
September 2013: Air Lease Corporation (ALE) announced the long-term lease of one 737-700 jet airplane to Georgian Airways (GEI), based in Tbilisi, Georgia. The 737-700 is scheduled for delivery to (GEI) in October.
Air Lease Corporation (ALE) finalized an order for three Boeing (TBC) 787-9s and 30 787-10s. The order, valued at $9.4 billion at list prices, fulfills the commitment originally announced during the 2013 Paris Air Show in June.
The new 787-10, launched in June 2013, will extend and complement the 787 Dreamliner family, carrying 300 to 330 passengers up to 7,000 nautical miles/12,964 km, while providing +25% more fuel efficiency than airplanes of its size today and more than >10% better than anything being offered by the competition for the future. The 787-9 completed its first flight and is scheduled for first delivery to Air New Zealand (ANZ) in mid 2014.
This order for 787-9s and 787-10s adds to the more than >180 Boeing airplanes that (ALE) already has on order including Next-Generation 737-800s, 737 MAX 8s and MAX 9s, 777-300ERs, and 787-9s. The 787-10, which will deliver in 2018, has 102 orders and commitments from five customers.
January 2014: Air Lease Corporation (ALE) announced long-term lease agreements with Sichuan Airlines (SIC) for two new Airbus A321-200 airplanes with sharklets powered by (IAE) (V2533) engines, which are scheduled for delivery in May and October 2014.
(ALE) announced a long-term lease agreement with Air France (AFA) for one new 777-300ER airplane from (ALE)'s order book, scheduled for delivery in the fourth quarter of 2015.
March 2014: Air Lease Corporation (ALE) announced a long-term lease agreement with (KLM) for a new Boeing 777-300ER with two (GE) Aviation (GEC) engines, scheduled for delivery in 2016.
May 2014: Air Lease Corporation (ALE) has taken delivery of the first of 15 Boeing 777-300ERs on order. The airplane is the first of two delivering to British Airways (BAB) on long-term lease; the second one is scheduled to deliver from Boeing (TBC) in July.
(ALE) Chairman & (CEO), Steven Udvar-Hazy said, “The operational capabilities and versatility of the 777-300ER provide significant profitability potential for our customers. With its leading economics and passenger-pleasing interior, this airplane has maintained a broad customer base year after year and will continue to do so long into the future.”
According to Boeing (TBC), Udvar-Hazy helped launch the 777-300ER in 2004, and has ordered 94 777s during his career in the industry. This includes 43 777-200ERs, eight 777-300s and 43 777-300ERs (more than any other lessor and the second most of any Boeing customer).
Novair ((IATA) Code: N9, based at Stockholm Arlanda) (NOO) has signed a long term lease agreements with the Air Lease Corporation (ALE) for three new Airbus A321neo airplanes, which are scheduled for delivery from 2017 onwards. Once in service, Novair (NOO) will be the first operator of the type in Scandinavia.
Air Lease Corporation (ALE) announced the delivery of one used Airbus A320-200 to Air Serbia (JAT), a new customer. The A320 was delivered to (JAT) in March.
June 2014: Air New Zealand (ANZ) took delivery of the first of two new Boeing 777-300ERs from Air Lease Corporation (ALE). A second new 777-300ER is scheduled for delivery this fall. Both 777-300ERs are from (ALE)’s order book with Boeing. (ALE) announced 12-year lease agreements with Taiwan’s (EVA) Air for two new Boeing 777-300ERs, scheduled for delivery in the second half of 2015 and first half of 2016.
July 2014: Air Lease Corporation (ALC) has ordered six 777-300ERs and has reconfirmed orders for 20 737 MAX 8 airplanes, valued at $3.9 billion at current list prices.
August 2014: Air Lease Corporation (ALE) placed one Airbus A320 airplane at VivaColombia (VVC) on long-term lease, scheduled for delivery in spring 2015. Originally acquired by (ALE) in May 2011, the airplane is currently on lease to an airline in Asia and is equipped with (CFM56-5B) engines.
September 2014: Air Lease Corporation (ALE) announced the long-term lease placement of two new Boeing 737-800s with China’s Kunming Airlines (KMG), scheduled for delivery in 2015. These airplanes are from (ALE)’s order book with Boeing (TBC).
November 2014: The Air Lease Corporation (ALC) has placed an order for (CTT) Systems’ Zonal Drying Systems to be installed in four Transavia Holland/France (TAV)/(TVF) Boeing 737-800NGs. The systems, which eliminate condensation in the airplanes, are scheduled for delivery during 2015.
December 2014: Maldivian Airlines (DQA) and the Air Lease Corporation (ALE) have signed a long-term lease contract for one Airbus A321-200 (2599). The airplane will deliver in the first quarter of 2015 and will join another (ALE)-leased A320.
Air Lease Corporation (ALE) announced a long-term lease agreement for an additional new ATR72-600 with Indonesia’s KALSTAR Aviation, for delivery in the second half of 2015. The airplane will join two other ATR 72-600 airplanes already operated by the airline, also on long-term lease from (ALE).
January 2015: News Item A-1: Airbus (EDS) has launched the A321neo with 97 tonnes maximum takeoff weight (MTOW), following the first commitment from Air Lease Corporation (ALE). The move comes just six months after (ALE) became a launch customer for the A330neo.
(ALE) signed a memorandum of understanding (MOU) for +30 more A321neos, upsizing its commitments from the 2014 Farnborough Airshow from +60 to +90.
“We can pick up not only the 500 airplanes to replace the Boeing 757 [with the A321LR], but there is a market of 500 airplanes for growth,” Airbus (COO) Customers, John Leahy said, adding that at the end of December, firm orders for the neo reached over >3,600 airplanes from 70 customers.
Airbus (EDS) said the A321neo 97t will have the longest range (4,000 nm) of any single-aisle airplane available today and tomorrow, making it suitable for transatlantic routes, and allowing airlines to tap into new long-haul markets that were not previously accessible with current single-aisle airplanes.
(ALE) Chairman & (CEO), Steven Udvar-Hazy said (ALE) wants a footprint in every promising market segment, including ones that can be opened by this new version of the A321neo. “The longer-haul, single-aisle market is a lucrative one that the A321neo will now dominate. This new version of the A321neo is a high-revenue generating airplane, which will open up many new opportunities for our customers,” Udvar-Hazy said.
Airbus said the A321 97t variant will be able to fly 206 passengers on longer routes of up to 4,000 nm in a two-class layout. First deliveries are scheduled to begin by 2019.
If (ALE)’s Memos of Understanding (MOU)s for 30 A321neos (plus 25 A330neo family aircraft) become firm orders, (ALE)’s total orders for Airbus (EDS) airplanes would stand at 258 (53 A320ceo family, 140 A320neo family, 15 A330 family, 25 A350 XWB family and 25 A330neo family).
News Item A-2: Air Lease Corporation (ALC) will deliver eight new Boeing 777-300ER wide body airplanes to six airlines in 2015 on long-term lease agreements. The airlines comprise Air France (AFA) (1), Emirates (EAD) (1), Korean Air (KAL) (2), (EVA) Air (1), (KLM) (1) and Ethiopian Airlines (ETH) (2). In 2014, (ALE) delivered five new 777-300ER airplanes on long-term lease, comprising two to British Airways (BAB), two to Air New Zealand (ANZ), and one to Etihad Airways (EHD).
February 2015: Air Lease Corporation (ALE) announced long-term lease agreements with ultra-low-cost carrier (ULCC) Volaris (VLS) for two new Airbus A321-200 airplanes with Sharklets powered by (IAE) (V2533-A5) engines. Both airplanes are from (ALE)’s order book with Airbus (EDS) and scheduled for delivery in spring 2015. (ALE) also delivered one new ATR 72-600 to APEX Airlines in Myanmar.
March 2015: News Item A-1: Air Lease Corporation (ALE) placed two Boeing 737 MAX-8s with Travel Service (TVS) for delivery in 2018 - 2019.
News Item A-2: Air Lease Corporation (ALE) has finalized its order for 30 Airbus A321LRs and 25 A330-900neos.
(ALE) was the first customer to commit to each of the airplane variants, announcing plans to take the A330-900neos at the 2014 Farnborough Airshow and the A321LRs at the type’s launch in January 2015. “We see significant market appetite for Airbus’ A321LR and A330neo models, offering operators exactly what they want (even more range, even better economics and superior level of passenger comfort),” (ALe) Chairman & (CEO), Steven Udvar-Hazy said.
The A321LR, due for delivery from 2019, is the newest variant of the A321neo. Airbus said the A321LR’s 4,000 nm range is the longest of any single-aisle airplane, making it capable of transatlantic and long-haul routes. It can hold 206 passengers in a “comfortable two-class layout.” This latest deal takes (ALe)’s firm A321neo commitment to 90 airplanes.
(ALE)’s total Airbus (EDS) order book now stands at 258 airplanes, comprising 53 A320ceos, 140 A320neos, 15 A330s, 25 A350 XWBs and 25 A330neos.
News Item A-3: Air Lease Corporation (ALE) announced the delivery of one new Boeing 777-300ER to Emirates (EAD), and one Airbus A321-200 (2270) to Iberia (IBE).
News Item A-4: Air Lease Corporation (ALE) announced long-term lease agreements with Air Austral (AUX) for two new Boeing 777-300ERs. Both airplanes are from (ALE)’s order book with Boeing and are scheduled to deliver in the fall of 2016.
April 2015: News Item A-1: Air Lease Corporation (ALE) announced a long-term lease agreement with Aeromexico (AMX) for one new Boeing 787-9. This airplane is from (ALE)’s order book with Boeing (TBC) and is scheduled for delivery in the fall of 2016.
News Item A-2: Air Lease Corporation (ALE) has delivered one Boeing 737-800NG to Belavia (Belarus) (BLV) on long-term lease. The 737-800NG was formerly on lease from (ALE) to airberlin (BER).
July 2015: News Item A-1: Air Lease Corporation (ALE) announced a long-term lease agreement with Far Eastern Air Transport (FAT) for one new Boeing 737-800. The 737-800 is from (ALE)’s order book with Boeing and will deliver in the second quarter of 2016.
News Item A-2: Air Lease Corporation (ALE) announced long-term lease agreements with Frontier Airlines (FRO), an ultra-low-cost carrier (ULCC) based in the USA, for two new Airbus A320-200s. These aircraft are from (ALE)’s order book with Airbus (EDS) and will deliver in the second and third quarters of 2016. (ALE) also signed a long-term agreement with Hawaiian Airlines (HWI) for one additional new Airbus A330-200. This aircraft is from (ALE)’s order book with Airbus and will deliver in the second quarter of 2016.
News Item A-3: Air Lease Corporation (ALE) entered into a long-term lease agreement with Air Vanuatu (VAN), an international airline based in Port Vila, Vanuatu, for one new Boeing 737-800. The 737-800 is from (ALE)’s order book with Boeing and will deliver in January 2016.
August 2015: News Item A-1 Air Lease Corporation (ALE) delivered one new Boeing 737-800NG on long-term lease to American Airlines (AAL) on August 14, 2015.
November 2015: News Item A-1: "(EVA) Air Takes Delivery of First 777-300ER with New Livery" by (ATW) Mark Nensel, November 12, 2015.
(EVA) Air took delivery of its first re-branded Boeing 777-300ER at Boeing (TBC)’s delivery center in Everett, Washington, USA on November 11.
While being the 22nd 777-300ER in (EVA)’s fleet, the new 777-300ER debuted (EVA)’s new livery design and corporate identity - - see photo - - "EVA-777-300ER New Livery - 2015-11.jpg." The 777-300ER’s simplified tail design features a compass as its focal point, borrowed from (EVA)’s corporate parent, the Evergreen Group; the 777-300ER's underbelly is now a dark-green, with a curved orange borderline.
The 777-300ER is the first delivery in a series of 12-year lease agreements between (EVA) and Air Lease Corporation (ALE); two additional 777-300ERs are scheduled for 2016, and the fourth will be delivered in 2017. By the end of 2016, (EVA) expects to have seven new 777-300ERs and six new Airbus A321-200s in its fleet, bringing (EVA)’s fleet to over >80 airplanes. (EVA) will fly its new 777-300ERs on North American routes; (EVA) plans to increase its North American frequency to 77 flights per week by the end of 2016.
Boeing VP, Jeff Klemann, (EVA) President, Austin Cheng and Air Lease Corporation (ALC) (CEO), Steven Udvar-Házy participated in the events as “keys” to the new 777-300ER were handed over to (EVA) Chairman, K W Chang.
See photos - "EVA-1-Steven Udvar-Hazy - 2015-11-A/B.jpg."
(EVA) Chairman Chang piloted (EVA) Air’s new 777-300ER back to Taiwan from Washington state. Before departing, Chang, a certified pilot (FC), inspected the airplane accompanied by executives from (EVA) Air, Boeing (TBC), and (ALC) (ALE).
“(EVA) was a launch customer for the 777-300ER in 2005 and the airplane has become the backbone of our long-haul fleet,” Chang said, adding (EVA) will operate over >30 777-300ERs by the end of 2017. “We launched our new generation Boeing 777-300ERs [in 2014] and significantly upgraded our in-flight services and cabin environments.”
December 2015: Air Lease Corporation (ALE) announced a long-term lease agreement with Far Eastern Air Transport (FEAT) (FAT), an international airline based in Taipei, Taiwan, for one Boeing 737-800. The airplane is presently on lease to a European carrier since early 2012 and will deliver to (FAT) in June 2016. This is (ALE)’s second 737 lease placement with (FAT), the first being a new 737-800 delivering in the second quarter of 2016, which was announced earlier this year.
(EVA) Air has agreed to lease four new Boeing 787-9s and two new 787-10s from Air Lease Corporation (ALE).
January 2016: "Air Lease Corporation (ALE) Sells its ATRs to Nordic Aviation Capital" by (ATW) Victoria Moores, January 4, 2016.
Air Lease Corporation (ALE) is to sell its fleet of 25 ATRs to Denmark’s Nordic Aviation Capital (NAC), which specializes in turboprop and regional aircraft leases.
The majority of the 25 aircraft will be transferred from (ALE) to (NAC) during the first half of 2016.
(ALE) said the aircraft have “served it well,” but turboprops represent less than <5% of its portfolio and it is disposing of the fleet to focus on jet aircraft.
“Our ATR fleet is a profitable platform which assisted (ALE) with its early development. The sale of this portfolio allows us to deploy more capital to grow our mainline jet fleet” (ALE) Chairman & (CEO), Steven Udvar-Házy said.
Conversely, (NAC) is a regional aircraft and turboprop specialist, ranking as the largest ATR operator world wide. The deal adds further scale to their business, (ALE) said.
“(ALE) has built up an impressive group of ATR customers and we are delighted to add them to our growing list of customers,” (NAC) Chairman, Martin Møller said.
May 2016: News Item A-1: Air Lease Corporation (ALE) has reported a net profit of $92.8 million for (Q1) 2016, a +380% year-on-year increase.
The Los Angeles-based lessor also achieved record revenues of $343.3 million in the three months up to March 31, bettering (Q1) 2015’s $278.3 million revenue total.
During (Q1) 2016, (ALE) made $221.5 million from the sale of 12 ATR aircraft as the offloading of its turboprop fleet nears completion.
Looking forward, Steven Udvar-Házy, (ALE)’s Chairman & (CEO), said: “We see the manufacturers adjusting production rates in line with forward market projections of aircraft demand, which contributes to a healthy long-term balance in the marketplace.”
News Item A-2: Air Lease Corporation (ALE) delivered one new Airbus A320-200 to Frontier Airlines (FRO), the first of two new A320-200 aircraft deliveries on long-term lease from (ALE)’s order book with Airbus (EDS). The second A320-200 is scheduled to deliver in fall 2016.
Air Lease Corporation (ALC) has placed three new Airbus A321-200ceos, one new Airbus A321-200neo and one new A320-200neo on long-term leases to Iceland’s (WOW) Air. One A321-200ceo has been delivered to (WOW) in May, with the remaining two A321-200ceos delivering in (Q3) and (Q4) 2016. The A320-200neo and A321-200neo aircraft are scheduled to deliver in (Q1) 2017 and (Q1) 2018, respectively. (ALE) purchased three of the aircraft from another operator just after delivery from Airbus (EDS) and the other two aircraft are from (ALE)’s order book with Airbus.
June 2016: News Item A-1: Air Lease Corporation (ALE) has appointed John Plueger as President & (CEO), effective July 1, as current (CEO). Steven Udvar-Házy assumes the role of Executive Chairman of the board, a full-time officer role.
“On behalf of the board of Directors, I thank Steve for his extraordinary leadership of (ALE) as its Founder, Chairman & Chief Executive Officer (CEO),” (ALE) Lead Director, Robert Milton said. “Steve started (ALE) in February 2010, and as a result of his vision and guidance, the company today owns and manages 268 young and in-demand jet airplanes on lease to 88 airline customers around the world, and has an order book of 386 new jet airplanes to be delivered from Airbus (EDS) and Boeing (TBC) though 2023. These role changes are part of the board’s long-term succession plans and the board is pleased that as a result of these changes, (ALE) will benefit from both John’s expanded role, and no diminishment in Steve’s drive and commitment to building an ever bigger and stronger (ALE).”
Plueger joined (ALE) as its President & (COO) and board member in March 2010, shortly after the company was formed. Plueger has more than >30 years of aviation industry and aircraft leasing experience, 24 of which were with International Lease Finance Corporation (ILFC), where he served on its board of directors, as President & (COO), and then acting (CEO) prior to joining the Air Lease Corporation (ALE).
Udvar-Házy said, “John and I have worked together for over >30 years and I am extremely proud of what we have accomplished in six short years at (ALE) and look forward to continuing to partner with John in my new role as Executive Chairman. In this role, I will continue to work closely with our airline customers, Original Equipment Manufacturers (OEM)s and financiers to modernize and grow airline fleets and make (ALE) the premier leasing company in the world.”
Plueger said he “looks forward to working with Steve, our fantastic team at (ALE), and all of our global constituencies and stakeholders to best serve our airline customers, drive forward our strategic business priorities, and provide industry leading returns to our stockholders.”
In addition, the board of directors has promoted Gregory Willis to Executive VP & (CFO) from Senior VP & (CFO), effective July 1.
News Item A-2: "Steven Udvar-Hazy Takes a Step Back" by (ATW) Aaron Karp in his AirKarp Blog, June 20, 2016.
When Steven Udvar-Hazy, who emigrated from Soviet-occupied Hungary to the USA in 1958 with his family at the age of 12, launched International Lease Finance Corporation (ILFC) (ILF) in 1973 with Leslie and Louis Gonda (by leasing a DC-8 to Aeromexico (AMX)) commercial aircraft leasing didn’t exist as a business. Now, over 40% of the global airline fleet is leased.
In 2010, Udvar-Hazy left (ILFC), which he continued to lead after it was bought by the American International Group (AIG) in 1990, after unsuccessfully attempting to put together a group to buy the aircraft lessor back from the (AIG). He then quickly founded Air Lease Corporation (ALE), which went from a standing start to, as of March 31, 2016, owning 239 aircraft valued at $11.2 billion. The Los Angeles-based lessor has a customer base of 88 airlines in 50 countries.
Udvar-Hazy, 70, has announced he will step down as (ALE)’s (CEO) on July 1, but will continue as the company’s Executive Chairman.
It’s hard to tell exactly what that means; it’s nearly impossible to imagine Udvar-Hazy spending his days playing golf and sipping umbrella cocktails. He will likely keep a hand, and a highly influential one at that, in commercial aviation. But certainly this marks a step back from the front lines of the commercial aircraft leasing business he invented.
It’s difficult to overstate Udvar-Hazy’s influence on commercial aircraft manufacturing. When he sits on a panel at an industry conference, for example, his every utterance is carefully scrutinized; with a few words of approval or disapproval, Udvar-Hazy can basically make or break an aircraft program.
During a 2006 (ISTAT) conference in Orlando, he publicly declared that the Airbus A350’s design was not adequate to compete with the Boeing 787. Airbus (EDS) dutifully went back to the drawing board and redesigned the aircraft; among other moves, it switched from an aluminum to a composite frame, something Udvar-Hazy had strongly suggested.
Udvar-Hazy and (ALE) last year settled a nasty lawsuit in which (ILFC) claimed Udvar-Hazy and fellow executives who launched (ALE) had “engaged in massive downloading and theft of (ILFC)’s confidential trade secret information [and] then loaded [the information] en masse onto (ALE)’s servers.” (ALE) agreed to pay (ILFC) $72 million, but it emphasized the settlement was “intended solely as a compromise of disputed claims,” making clear that “no party admits any wrongdoing or liability.”
In defending against (ILFC)’s claims, Udvar-Hazy said that “there is no secret sauce in the aircraft leasing business.”
Indeed, Udvar-Hazy’s brain has long been the secret sauce. His ability to analyze an aircraft and determine its place (or lack thereof) in the global marketplace is unmatched.
September 2016: Azores Airlines (AZS) has committed to six new A320neo aircraft on lease from Air Lease Corporation (ALE).
The (CFM) (Leap 1A) engine-powered aircraft are from (ALE)’s order book with Airbus (EDS) and will be delivered between (Q4) 2017 and early 2021.
Four of the aircraft are A321LR versions, which will be deployed on long-haul routes to North America.
On September 20, (ALE) said the aircraft will replace Azores (AZS)’s existing A310 fleet.
Paolo Menezes, (CEO) of Azores Airlines (AZS), said: “These aircraft are ideal new jets for our airline and (ALE) provided outstanding creativity, economics and strategic advantages in this important transaction.”
October 2016: Air Lease Corporation (ALE) placed 12 new Airbus A321neo aircraft on long-term lease to Vietnam Airlines (VIE). Six of the aircraft are scheduled for delivery in 2018 and six will deliver in 2019, all from (ALE)’s order book with Airbus (EDS).
February 2017: News Item A-1: Los Angeles-based commercial airplane lessor Air Lease Corporation (ALE) posted a 2016 net profit of +$374.9 million, up +48% from +$253.4 million net income in 2015.
(ALE)’s total revenues for the year were $1.4 billion, up +16% over $1.2 billion in 2015. (ALE’s expenses totaled $838.8 million, up +1.1%; operating income was +$580.2 million, up +47.7% over +$393 million in 2015.
In 2016, (ALE) signed lease agreements for 122 airplanes with 39 customers, ending the year with a net book value of $12 billion in airplanes with a weighted average age of 3.8 years and a weighted average lease term remaining of 6.9 years.
As of December 31, 2016, (ALE)’s fleet totaled 237 owned airplanes (3 less than 2015), and 30 managed airplanes (up 1 from 2015). During the year, (ALE) took delivery of 43 airplanes from its order book and sold 46 airplanes from its operating lease portfolio.
By the end of the year, (ALE) had sold all 19 of its remaining ATR 42/ATR 72-600 aircraft, plus 15 Embraer E190s and 5 E175s, to Danish regional airplane lessor Nordic Aviation Capital (NAC) for $1.2 billion. The remaining 5 E175s will be sold to (NAC) during the 1st quarter of 2017.
In the 2016 4th quarter, (ALE) recorded a +$97 million net profit, a +19.9% increase over +$80.9 million in (4Q) 2015. Revenues totaled $370.5 million, up +13.4% from $326.7 million, while operating expenses increased +9.5% to $221.1 million, leading to 4th-quarter operating income of $149.4 million, up +19.8% year-over-year. “We [posted] record financial results in a highly competitive lease market,” (ALE) President & (CEO) John Plueger said. “Global passenger growth increased a healthy +6.3% in 2016 and continues to provide a fundamental stimulus to our business going forward. We continue to pursue strategic initiatives that build on our core competencies, and we enter 2017 with a tailwind from our new investment grade ‘BBB’ rating from Fitch.”
News Item A-2: Guangzhou-based China Southern Airlines (GUN) has agreed to lease 5 Boeing 787-9s from Air Lease Corporation (ALE), the Los Angeles-based lessor said. The 787-9s will be powered by (GE) Aviation (GEnx) engines. Deliveries of the leased 787-9s to (GUN) will start in the 2019 1st quarter. (GUN) will receive 3 of the 787-9s in 2019 and 2 in 2020, according to (ALE).
China Southern (GUN) currently operates 10 787-8s. It announced in a Shanghai Stock Exchange filing in October 2016 that it was ordering 12 787-9s, but these orders are not yet listed by Boeing (TBC). Those deliveries are slated to start in 2018. It is not clear whether the 5 (ALE) 787-9s are considered part of those 12 787-9s or are in addition to them. (ALE) has ordered 46 787s and has so far taken delivery of 3, all (GEnx)-powered 787-9s, according to Boeing. (ALE) still has 17 787-9 orders unfilled, including 11 designated to be powered by (GEnx) engines, according to Boeing (TBC).
March 2017: Aeromexico (AMX) agreed to lease a 2nd Boeing 787-9 from Air Lease Corporation (ALE) for delivery in June 2018.
May 2017: Commercial aircraft lessor Air Lease Corporation (ALE) posted $84.9 million in net income for the 2017 1st quarter, down -8.5% from $92.9 million in (1Q) 2016.
Los Angeles-based (ALE)’s revenues for the quarter totaled $360.2 million, up +4.9% over $343.3 million in the year-ago quarter. The company’s expenses increased +13.5% year-over-year (YOY) to $226.3 million; operating income for the quarter was $133.9 million, down -7% (YOY). “Throughout the quarter, we saw solid lease demand, including robust placements of both our new generation single-aisle and twin-aisle aircraft. We also continue to see demand from buyers of our used Boeing and Airbus airplanes,” (ALE) Executive Chairman of the Board (COB) Steven Udvar-Házy said. “We view the slowing of new airplane orders as healthy for the industry in the face of record backlogs and ongoing strain in the global supply chain.”
“During the 1st quarter, we focused on a strategic opportunity to sell and manage a portfolio of 19 mid-life airplanes,” (ALE) (CEO) & President John Plueger said, referring to (ALE)’s agreement with Thunderbolt Aircraft Leasing Limited, a group of 3rd party investors who closed a $344.7 million fixed rate notes offering, backed by the portfolio of 19 airplanes, on May 4. The airplanes are a mix of narrow bodies and wide bodies, average age 12.5 years, which were leased to 17 lessees based in 13 countries. (ALE) and its Irish affiliate (ALE) Aircraft Limited will act as servicers of the aircraft; (ALE) expects to sell all of the aircraft by the end of 2017.
“Looking forward, we [will continue] to capitalize on incremental aircraft acquisition opportunities to help offset further delays on Airbus (EDS) deliveries,” Plueger said. As of April 30, (ALE) has 7 A320neos, 1 A321ceo, 129 A321neos, 25 A330-900s, 20 A350-900s and 9 A350-1000s in (EDS)’ order book queue. From Boeing (TBC), (ALE) has 120 737s and 43 787s in its unfilled order queue as of April 30.
(ALE) signed 34 aircraft lease agreements and 19 letters of intent with 5 new airline customers during the quarter. As of March 31, (ALE)’s fleet comprised 243 owned aircraft and 31 managed aircraft, at an aggregate net book value of $12.6 billion, with a weighted-average age of 3.7 years and a weighted average lease term remaining of 6.9 years.
(ALE) took delivery of 11 airplanes during the quarter, valued at $825 million, including 2 Airbus A320-200neos, 6 Boeing 737-800s, 2 777-300ERs and 1 787-9.
June 2017: (WOW) Air takes delivery of Europe's 1st A321neo (7694, TF-SKY) at Paris Air Show (photo: "WOW-2017-06 - A321neo 1st.jpg"),
Air Lease Corporation (ALE) leased. (WOW)'s all-Airbus (EDS) fleet is now 3 A320, 11 A321, and 3 A330-300.
August 2017: Los Angeles-based Air Lease Corporation (ALE) has finalized an order with Boeing for 12 737 MAX airplanes, previously announced at the 2017 Paris Air Show. The agreement also includes 2 new orders for the 787-9 Dreamliner.
The deal included 5 737 MAX 7s and 7 737 MAX 8s, bringing (ALE)’s total 737 MAX orders to 130. The 737 MAX airplanes will be powered by (CFM) International (LEAP-1B) engines, in an engine order valued at $348 million at list prices. Deliveries are scheduled to begin in 2022.
The 5 737 MAX 7s and 7 737 MAX 8s are collectively valued at $1.2 billion at list prices.
The 2 787-9s will be powered by (GE) Aviation’s (GEnx-1B) engines, which will be delivered from 2019, according to (GE) Aviation (GEC). (ALE) has ordered a total of 49 787 Dreamliners.
“These additional orders reflect (ALE)’s highly successful placements to date of our 737 MAX and 787 order book and the need to fulfill the incremental demand we are experiencing for these airplanes across both existing and new customers for (ALE),” (ALE) (CEO) & President John Plueger said.
See Photo: "ALE-737 MAX 8 & 737 MAX 9 in Air Lease livery, 2017-08."
October 2017: News Item A-1: The Aviation Capital Group (CGP) promoted Steven Udvar-Hazy to Senior VP to succeed John Feren as Head (OEM) Relations & Market Development, effective December 31.
News Item A-2: Air Lease Corporation (ALE) delivered 3 aircraft (Airbus A320neo, A321neo and Boeing 787-9) in (1Q) 2017 and ended quarter with a portfolio of 236 owned and 51 managed aircraft.
December 2017: (LOT) Polish Airlines has taken delivery of its 1st Boeing 737 MAX 8 and expects to have 6 airplanes of the type by 2020, all on long-term lease from USA lessor Air Lease Corporation (ALE).
(LOT), the Poland flag carrier also has options for 5 more 737 MAX 8s, which are expected to be delivered in 2019 to 2020.
The 186-seat 737 MAX 8, powered by (CFM) (LEAP-1B) engines, is configured in a 3-class layout featuring business (C), premium economy (PY) and economy (Y) class.
(LOT) (CEO) Rafal Milczarski said taking the airplane is a “big step forward” to “help us achieve our goals of increasing our operational effectiveness and improving our service.”
(ALE) has +129 more 737 MAX airplanes on order.
In addition, (LOT), the Star (SAL) Alliance member plans to expand its fleet by +4 more Boeing 787-9s by the end of 2019. It currently has 8 787-8s.
March 2018: IndiGo (INZ) agreed to lease 2 new Airbus A320-200s from Air Lease Corporation (ALE) for delivery in (3Q) 2018.
August 2018: Air Lease Corporation (ALE) increased net income +14% to $115.2 million in the 2nd quarter as revenues increased +4.4% to $397.8 million, largely on the strength of a higher net-book fleet value.
(ALE) ended the quarter with 271 owned airplanes and 49 managed airplanes, up from 244 and 50, respectively, compared to the year-ago quarter. Its fleet net-book value increased +11.9% to $14.9 billion. (ALE) did not sell any airplanes last quarter.
Click below for photos:
ALE-737 MAX 8 and 737 MAX 9 - 2017-08.jpg
ALE-777-300ER 737 MAX 8-2014-07
ALE-777-300ER EVA New Livery - 2015-11.jpg
ALE-A321neo - 2015-01
ALE-A330-900neo - 2015-03.jpg
60 (2012-02) ORDERS 737-800 (CFM56-7B):
14/4 ORDERS 737-800 (CFM56-7B):
2 ORDERS (2016-04) 737-800 (CFM56-7B), AIR LEASE CORPORATION (ALE) LSD:
60/25 ORDERS (2018-02) 737 MAX 8 (LEAP-1B):
15 ORDERS (2018-02) 737 MAX-9 (LEAP-1B):
1 +14 ORDERS 777-300ER (GE90-115B):
2 ORDERS (2014-11) 777-300ER:
2 ORDERS (2016-10) 777-300ER, FOR AIR AUSTRAL (AUX):
6 ORDERS 777-300ER (GE90-115B):
12 ORDERS 787-9 DREAMLINERS (GEnx), 8 FOR (VIE) STARTING 2017:
3 ORDERS 787-9:
5 ORDERS (2019-02) 787-9 DREAMLINER (2018-02) (GEnx):
2 ORDERS (2018-06) 787-9 DREAMLINER AIR LEASE CORPORATION LEASE TO AEROMEXICO (AMX):
30 ORDERS (2018-02) 787-10:
53 ORDERS A320ceo FAMILY AIRPLANES (PW11000G-JM) (INITIALLY 31 A320'S & 20 A321'S):
140 ORDERS A320neo:
1 A321-200 LEASED TO (BER) 2011-01.
6 ORDERS (2013-02) A321-200 (CFM56), LEASED TO (JMA)/(GUE):
90 ORDERS (2019-02) A321-200neo, (ALE) LEASED (INCLUDING 30) (LAUNCH CUSTOMER 2015-01), 97 TONNES (MTOW), 4,000 NM RANGE, 2 CLASS, 206 PAX:
1 +11 ORDERS (2018-02) A321-200neo, (ALE) LEASED TO (VJE) & (WOW):
4 ORDERS (2017-02) A321LR (LEAP 1A), (AZS) LEASED:
15 ORDERS A330 FAMILY, (ALE) LEASED:
25 ORDERS A330-900neo (LAUNCH CUSTOMER):
25 ORDERS A350 XWB FAMILY:
10/5/5 ORDERS EMBRAER E190:
1 11/8 ORDERS ATR 72-600, DELIVERED TO TRIP LINHAS AEREAS (2011-11).
Click below for photos:
ALE-1-Steven Udvar-Hazy - 2015-11-A.jpg
ALE-1-Steven Udvar-Hazy - 2R-2015-11.jpg
ALE-2-John Plueger - 2016-06.jpg
STEVEN UDVAR-HAZY, FOUNDER, & EXECUTIVE CHAIRMAN OF THE BOARD.
JOHN PLUEGER, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO) (2016-06).
GRANT LEVY, EXECUTIVE VP, GENERAL COUNSEL & SECRETARY.
MARC BAER, EXECUTIVE VP MARKETING.
ALEX KHATIBE, EXECUTIVE VP.
GREGORY WILLIS, EXECUTIVE VP FINANCE & CHIEF FINANCIAL OFFICER (CFO) (2016-07).
JAMES CLARKE, SENIOR VP & CHIEF FINANCIAL OFFICER (CFO).
JOHN POERSCHKE, SENIOR VP AIRCRAFT SPECIFICATIONS & PROCUREMENT.
ROBERT MCNITT, SENIOR VP LEGAL.
KISHORE KORDE, SENIOR VP.
PIERCE CHANG, VP.
CHI YANG, VP, EX-(ILF) (2011-09).
MICHAEL BAI, VP, EX-(ILF) (2011-09).
JENNY VAN LE, VP, EX-(ILF) 2011-09).
EMILIO ROMANO, REGIONAL DIRECTOR LATIN AMERICA.