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Formed and started operations in 2007. Airplane leasing company.
Avolon Leasing Group was created by the former head of the Royal Bank of Scotland.
The Oval, Building 1
Shelbourne Rd, Ballsbridge
Dublin 4, Ireland
EIRE/IRELAND WAS ESTABLISHED IN 1919, IT COVERS AN AREA OF 70,284 SQ KM, ITS POPULATION IS 3.6 MILLION, ITS CAPITAL CITY IS DUBLIN, AND ITS OFFICIAL LANGUAGES ARE ENGLISH AND GAELIC.
December 2010: Airbus (EDS) said Dublin-based leasing company, Avolon ordered eight A320s, which will be equipped with "Sharklet" winglets. Avolon (AZV) will make an engine selection for the airplanes in the near future. The list price for an A320 is $81.4 million, according to the Airbus (EDS) website.
“This initial order for eight A320 airplanes for their efficiency and reliability, complements our existing portfolio and fully rounds out our product-offering,” said Avolon President & (CCO), John Higgins. “We look forward to working with Airbus (EDS) as we continue to build the franchise and portfolio of our business.”
January 2011: Avolon (AZV) announced it raised $465 million in its third capital raising, bringing its total funds raised since May 2010 to more than >$2.5 billion for debt finance. The proceeds will be used to support the continued growth of the fleet, which includes more than >60 committed airplanes valued at more than >$2.8 billion.
"This debt raising is an important step in broadening our lender base, introducing three new, USA-based lenders to Avolon (AZV)," (CFO), Andy Cronin said.
Wells Fargo Securities led and structured the transactions, which consist of a fully underwritten long-term debt facility from a consortium that also includes Citi and Morgan Stanley. "This initial financing included a $400 million warehouse facility, which was the first facility of this type to be successfully executed in three years," (AZV) said.
June 2011: 2 737-8KNs (40246, A6-FDS; 40247, A6-FDT), sold to Avolon Leasing Group (AZV) and leased to FlyDubai (FDB).
October 2011: The Avolon Leasing Group (AZV), whose customers include American Airlines (AAL) and Ryanair (RYR), stated it expected French and German banks to reduce lending for financing airplane leasing.
European Aeronautic, Defence & Space Company (EADS), the parent company of Airbus (EDS), has sought to reassure investors that lenders aren’t retreating from the airplane market. Shares of the company fell -4% last month amid speculation that banks are cutting lending to shrink their balance sheets to comply with tougher banking regulations.
(AZV) signed a $300 million funding deal with the government of Singapore Investment Corporation, boosting the total capital it has raised to $4 billion. (AZV) has already secured financial backing from private equity companies including Cinven Ltd and (CVC) Capital Partners Ltd.
The leasing company is diversifying its funding base and has seen a “reawakening” of Japanese banks, driven by the strength of the yen in relation to the dollar, Domhnal Slattery, (CEO) said. The Japanese currency is trading at a postwar high against the USA currency.
Avolon (AZV) currently has a fleet of 88 airplanes consisting mainly of narrow-body A320-200 and 737-800 airplanes. (AZV) intends to increase the number of planes in its portfolio to 150 by the end of this decade.
Avolon (AZV) placed five 737-800s with Ryanair (RYR) and another four A320s with AirAsia (ASW). It’s now leasing its 88 planes to 25 different airlines in 18 different countries.
(AZV) completed a sale and leaseback transaction with Wizz Air (WZZ) for three new A320 airplanes to be delivered in the first half of 2012.
July 2012: Avolon (AZV) took delivery of the first of 12 direct-order 737-800 airplanes, the first of four to be placed on lease to Japan Airlines (JAL)/(JAS).
At the Farnborough Air Show, (AZV) made a commitment to purchase 10 737 MAX-8, 5 737 MAX-9, and 10 737-800s including reconfirmation rights for five more 737 MAX airplanes. The deal is valued at 2.3 billion at list prices, not including the the five reconfirmation 737 MAX airplanes. A reconfirmation, according to Boeing (TBC), refers to a "firm commitment that has some flexibility around it."
(AZV) also made a commitment for 15 A320neos valued at $1.54 billion.
September 2012: Avolon Leasing (AZV) has finalized a firm order for 10 737 MAX-8s, five 737 MAX-9s and 10 737-800 NextGen airplanes. The order, previously announced as a commitment at the Farnborough Air Show, is valued at $2.4 billion based on list prices.
The 737-800s are slated for delivery in 2015 and 2016 and follow Avolon (AZV)’s first Boeing (TBC) order placed at Farnborough in 2010 for 12 737-800s. The 737 MAX deliveries will begin in 2018.
January 2013: Irish lessor, Avolon and Wells Fargo announced plans to establish a new airplane leasing joint venture (JV) called Avolon Capital Partners (ACP). Wells Fargo will be the majority shareholder for the business, which has an initial target portfolio of $500 million. (ACP) will based in Dublin, focusing on building an airplane fleet through sale and leaseback transactions with airlines for fuel-efficient single aisle and twin-aisle airplanes.
Avolon (AZV) said the San Francisco-based bank has been a significant lender to its airplane leasing business since January 2011, helping the company to raise a total of $3.7 billion of debt capital since its inception in 2010.
(AZV) has finalized and expanded an Airbus (EDS) A320neo commitment, placing a firm order for 20 of the type. (AZV) signed a memorandum of understanding (MOU) for 15 A320neos at the Farnborough Airshow. Airbus (EDS) said the deal was confirmed in December and increased to cover 20 airplanes.
“Our increased commitment to the neo reflects the strong customer feedback we have received since our original announcement for 15 neo airplanes in July 2012,” Avolon (AVZ) President, John Higgins said.
(AVZ) also has 10 Boeing 737 MAX-8s, five 737 MAX-9s and 10 737-800 NextGen airplanes on firm order. The $2.4 billion (MOU) for these airplanes was also inked at Farnborough and finalized in September.
Avolon (AVZ) placed its previous narrow body orders with both Airbus (EDS) and Boeing (TBC) in 2010.
737-89P (40951, B-5731), leased to China Eastern Airlines (CEA).
February 2013: Avolon (AZV) said an analysis it conducted on the A320 and 737NG and their successors, the A320neo and 737 MAX, concluded that the current versions won’t be quickly displaced when the new versions enter service in 2015 and 2017, respectively.
“These new airplanes have no real improvement in terms of range and passenger load and should operate seamlessly” alongside the classic A320 and 737NG," said Avolon (AZV) Chief Technical Officer, Lucas Mollan. He added there will be no “big bang approach” in the narrow body sector as the new airplanes “are phased in incrementally” in airline fleets.
(AZV) has placed 92 airplanes with airlines since its 2010 founding and has another 75 on order. It has 20 A320neos and 20 737 MAXs on order.
As interested as airlines are in the fuel-burn improvements to be gained by the A320neo and 737 MAX, the fact that Boeing (TBC) and Airbus (EDS) are making minimal changes to the narrow bodies’ airframes means the transition to the new models will be “evolutionary rather than revolutionary,” Mollan said.
A report issued by Avolon (AZV) stated, “Unlike most previous new or upgraded models, neo and MAX were not developed in response to specific shortfalls in payload/range performance. Nor do their manufacturers claim compelling maintenance cost benefits. Their advantage lies almost exclusively in their fuel efficiency.”
As a result, “We expect the engine Original Equipment Manufacturers (OEM)s will bear the brunt of pressure to deliver [the re-engined models] on time and on specification,” (AZV) Head of Strategy, Dick Forsberg said. Avolon (AZV) predicted that Airbus (EDS) and Boeing (TBC) will discontinue production of the current narrow body models four years after entry-into-service (EIS) of the re-engined models — 2019 for the classic A320 and 2021 for the 737NG.
Eight years after (EIS), the re-engined models will make up 35% of the A320s and 737s in service worldwide, respectively, Forsberg predicted.
October 2013: Avolon Leasing announced the closing of the $636 million Asset Backed Securitization for Emerald Aviation Finance. On September 26, Avolon (AZV) said Emerald, a newly established special purpose company, had priced a total of $636 million of Fixed Rate Asset Backed Notes. The net proceeds are being used to acquire 20 airplanes from Avolon (AZV).
Avolon (AZV), the international aircraft leasing group, has acquired two A320 airplanes for delivery to Etihad Airways (EHD), as part of a sale and leaseback transaction. The deal is financed by Abu Dhabi National Leasing. The first of the two airplanes has now delivered. The second is scheduled for delivery in December.
March 2014: Irish lessor Avolon (AZV) has secured $500 million in debt financing which will be used to finance its airplane deliveries in 2014. “The successful closing of this $500 million facility demonstrates our ability to secure flexible, cost efficient and long-term capital to finance our continued growth,” Avolon (AZV) (CFO), Andy Cronin said.
(AZV) has raised $800 million since January, building on the $1.6 billion worth of debt financing it secured in 2013.
The latest $500 million is an eight-year facility, financed via Credit Agricole, Deutsche Bank, National Australia Bank and (HSBC). It will mature in December 2022. “Credit Agricole and Deutsche Bank have been supporters of Avolon (AZV) since its launch. We are also pleased to welcome National Australia Bank and (HSBC) as new lenders in Avolon’s strong and geographically diversified lending group,” Cronin said.
Airplane lessor, Avolon (AZV) has delivered a Boeing 737-800 to China Airlines (CHI). This is the first of a two-part airplane placement for Boeing 737-800s with China Airlines (CHI).
April 2014: Avolon (AZV) delivered the final of six Boeing 737-800NGs to Lion Air (MLI) as part of a sale and leaseback agreement.
May 2014: Avolon (AZV) delivered a Boeing 737-800NG to Lion Air (MLI) on May 6. This is the first delivery of a six airplane sale and leaseback deal with Lion Air (MLI), which includes four Boeing 737-800NGs and two Airbus A320-200s.
June 2014: Ireland-based lessor, Avolon (AZV) has filed notice with the USA Securities & Exchange Commission that it intends to issue an initial public offering (IPO). Timescale, value of the (IPO), and number of shares to be offered, were not revealed in the document. J P Morgan Securities, Morgan Stanley and Citigroup Global Markets are underwriting the offering.
Established in 2010, (AZV) has a portfolio of 202 airliners, the vast majority, various models of the Boeing 737 and Airbus A320 families. It has 48 airlines on its books.
Avolon (AZV) is currently owned by four groups: private equity companies Cinven, (CVC) Capital Partners, Oak Hill Capital Partners, together with the Government of Singapore Investment Corporation.
July 2014: Avolon Leasing Group (AZV) and (CIT) Aerospace (TCI) each signed memorandums of understanding (MOU)s for 15 Airbus A330neos at the Farnborough Airshow, making it a leasing company hat trick for the newly launched re-engined wide body.
When Airbus (EDS) announced program launch for the A330neo, USA lessor Air Lease Corporation (ALE) signed an (MOU) for 25 A330neo-900 variants.
Dublin-based lessor, Avolon (AZV) announced an (MOU) for 15 A330neos with a list price value of $4.1 billion and deliveries scheduled to begin in 2018.
USA lessor (CIT) Aerospace (TCI) similarly signed an (MOU) for 15 A330neos-900 variants, for deliveries also to begin in 2018, as well as five A321ceos for deliveries to begin in 2015.
Avolon (AZV) (CEO), Dómhnal Slattery said that the current A330 is “the workhorse” in the Asia-Pacific. “There is no question that the sweet spot for the [A330] neo is Asia. We see huge potential in emerging city pairs and this airplane will fit that spot perfectly over the next 20 years,” he said.
The A330neo will enter service at the end of 2017 with a Rolls-Royce (RRC) (Trent 7000) engine, a derivative of the (Trent 700) that powers the current A330.
August 2014: Lion Air (MLI) subsidiary, Batik Air (BTK) has taken delivery of its first Boeing 737-800 as part of its plan to offer international services later this year.
The 737-800, part of a six-airplane sale and leaseback deal from Irish lessor Avolon (AZV), will add to (BTK)’s existing six 737-900s and will also assist (BTK)’s plan to expand its current schedule from 10 destinations to 22 by year end. The delivered 737-800 is currently at Singapore’s Seletar facility.
September 2014: Irish lessor Avolon (AZV) has finalized an order for six Boeing 787-9s and five 737 MAX 9s, valued at more than >$2.1 billion at list prices. The deal builds on a commitment, which was inked during the 2014 Farnborough Airshow in July and marks (AZV)’s first firm order for the 787.
Dublin-based Avolon has now committed to a total of 20 737 MAXs with this latest order. In September 2012, it firmed an order for 10 Boeing 737 MAX-8s, five 737 MAX-9s and 10 737-800 NextGen airplanes.
December 2014: News Item A-1: Dublin-based lessor Avolon (AZV) firmed an order for 15 Airbus A330neos, previously announced at the Farnborough Airshow in July. The order has a list price value of $4.1 billion and deliveries are scheduled to begin in 2018.
Avolon (AZV) is a launch customer for the A330neo.
In July, Avolon (AZV) (CEO), Dómhnal Slattery said the current A330 is “the workhorse” in the Asia-Pacific. “There is no question that the sweet spot for the A330neo is Asia. We see huge potential in emerging city pairs and this airplane will fit that spot perfectly over the next 20 years,” he said.
The A330neo will enter service at the end of 2017 with a Rolls-Royce (RRC) (Trent 7000) engine, a derivative of the (Trent 700) that powers the current A330.
News Item A-2: Avolon Holdings (AZV) launched an initial public offering (IPO) that will place some 13.6 million common shares on the market.
(AZV) on September 30 had 227 airplanes and 49 customers on its books. It anticipates the shares being offered at between $21 to $23 each, which would raise between $286 to $314 million if fully subscribed.
All of the common shares are being offered by the selling shareholders, who have granted the underwriters an option to purchase up to 2,045,455 additional common shares to cover over-allotments, if any. Avolon (AZV) will not receive any proceeds from the offering.
The offering is being made pursuant to a registration statement filed with the USA Securities & Exchange Commission. (AZV) has been approved to list its common shares on the New York Stock Exchange under the symbol (AVOL).
March 2015: Irish lessor Avolon (AZV) delivered its 1st of 4 Boeing 787-9s to Virgin Atlantic (VAA), which has a further 9 in its fleet.
(AZV) delivered a 2nd Boeing 737-800 to Aeromexico (AMX). The delivery is the 2nd of 4 737-800s scheduled for delivery to (AMX) by (AZV). (AZV) also delivered an A321 airplane to Philippine Airlines (PAL), which is (AZV)’s 6th airplane on lease to (PAL), comprising 5 A320 family airplanes and 1 A330. (AZV) also delivered a 737-800 to Pegasus Airlines (PGS), (AZV)’s 4th airplane on lease to (PGS).
April 2015: News Item A-1: Avolon (AZV) has published a White Paper containing updated and expanded analysis of key factors that influence the economic life of commercial jet airplanes, building on an earlier study issued in September 2012. The analysis addresses airplane retirement and airplane storage trends and considers the outlook for the current stored fleet of commercial airplanes.
News Item A-2: (AZV) delivered a 737-800 airplane to Pegasus Airlines (PGS). The delivery is (AZV)’s 5th airplane on lease to (PGS).
News Item A-3: (AVZ) has completed a new $675 million, 8-year secured debt facility, which will finance up to 21 airplanes at a margin of 1.65%. The facility is financed by 6 banks based in Europe and Asia-Pacific.
May 2015: News Item A-1: Avolon (AVZ) appointed Dónal O’Neill as Head of Investor Relations, effective immediately. O’Neill is former senior equity analyst with Redburn Partners, where he covered the aviation and transportation industry.
News Item A-2: Aeroflot (ARO) received a 737-800 from airplane lessor Avolon (AZV), which will be operated by its Pobeda (PBD) subsidiary. This is (AZV)’s 6th airplane on lease to Aeroflot (ARO).
News Item A-3: Avolon Leasing (AZV) has delivered 1 new Airbus A320-200 airplane to VivaAerobus (VVS). This delivery is the 2nd of 4 airplanes due to deliver to (VVS). (AZV) also delivered 1 Boeing 787-9 airplane to Virgin Atlantic Airways (VAA). This delivery is the 2nd of 4 787-9 airplanes scheduled for delivery to Virgin Atlantic (VAA) by Avolon (AZV). Flydubai (FDB) took delivery of a 737-800 from Avolon (AZV). This is (AZV)’s 6th airplane on lease to Flydubai.
June 2015: Avolon (AZV) delivered a 737-800 to Hainan Airlines (HNA). This delivery is (AZV)’s 1st airplane on lease to (HNA).
July 2015: News Item A-1: Hainan Airlines (HNA) sister company Bohai Leasing has outlined plans to acquire a 20% “strategic interest” in Irish lessor, Avolon (AZV) for $429 million.
Bohai will launch an offer for the (AZV) stake “on or about July 31,” once it has secured internal approval for the acquisition. (HNA) parent, the (HNA) Group, which is Bohai’s largest shareholder, has already agreed to back the transaction which should be completed by the end of August.
“The directors of both Avolon (AZV) and Bohai unanimously support the transaction and believe this strategic investment by Bohai will deliver long-term value for shareholders in both companies,” the companies said, announcing the deal.
The Chinese lessor will offer $26 per share for the (AZV) stake, marking a 14.5% premium on (AZV)’s recent share trading. This figure is +30% higher than the Irish lessor’s (IPO) price last December.
Bohai (CEO) Chris Jin said the Avolon (AZV) stake will help expand his company’s leasing activities and geographic reach. Meanwhile, (AZV) will benefit from strengthened links in China, which company Chairman Denis Nayden described as “1 of the most compelling growth opportunities in global aviation over the next 2 decades.”
The deal will include provisions that maintain (AZV)’s right to pursue consolidation opportunities. Also, Bohai will not be able to increase its stake within 2 years of the acquisition without (AZV) board approval. “In any event, Bohai has also committed not to increase its shareholding in (AZV) above >30% unless as part of a fully financed cash tender offer for all of the outstanding common shares of (AZV),” the companies said.
Bohai Leasing is listed on the Shenzhen Stock Exchange and is a subsidiary of the (HNA) Group. At June 30, Avolon (AZV) had an owned, managed and committed fleet of 260 airplanes, serving 56 customers in 33 countries.
Avolon (AZV) delivered a Boeing 737-800 to Hainan Airlines (HNA). The delivery is the Irish lessor’s second airplane on lease to Hainan Airlines (HNA).
News Item A-2: Avolon (AZV) delivered an Airbus A320-200 aircraft to Pegasus Airlines (PGS), its 8th aircraft on lease to (PGS).
News Item A-3: Avolon (AZV) agreed to sale and leaseback transactions for 14 new airplanes in the 2nd quarter. (AZV) also delivered 14 new airplanes and sold 3 airplanes resulting in a +19% increase in its owned and managed in-service fleet to 152 airplanes at the end of June. (AZV)’s total fleet increased +29% year-on-year to 260 airplanes at the end of June.
News Item A-4: Avolon (AZV) delivered an Airbus A321-200 to Vueling Airlines (VUZ), its 1st aircraft on lease to the Spanish low-cost carrier (LCC).
August 2015: News Item A-1: Avolon (AZV) has agreed to a 4-week exclusivity agreement with China’s Bohai Leasing, 1 of the suitors hoping to buy the Ireland-based lessor. (AZV) announced Monday it is granting Bohai Leasing exclusive negotiating rights until September 7.
Bohai initially wanted to take a strategic stake of 20% in (AZV) for $26 a share, but upped this to a bid for all of Avolon (AZV)’s shares after an unnamed 3rd party announced it was prepared to bid $30 a share for the entire shareholding. Under the new exclusivity agreement, Bohai is offering $32 per share.
“During the exclusivity period, Bohai and (AZV) will endeavor to negotiate definitive agreements on terms previously discussed and accepted by the parties,” (AZV) said. “Bohai’s offer is subject to completion of satisfactory and customary due diligence.”
As part of the exclusivity agreement, Bohai will put a “good faith deposit” of $50 million into an escrow account. This is in addition to $25 million currently held in escrow, in connection with the cash tender offer made by Bohai on July 31.
The $75 million will pass to Avolon (AZV) “in certain circumstances.” These include a situation where (AZV) “is willing to execute definitive documents in connection with the transaction and Bohai is unable or unwilling to do so.”
After execution of definitive documents in connection with the transaction, the $75 million deposit will be increased by Bohai to $250 million, payable to (AZV) if the transaction “is not consummated under certain circumstances.”
Avolon (AZV) oversees a fleet of some 260 airplanes and has regional offices in China, Dubai, Singapore, and the USA.
News Item A-2: Avolon Leasing (AZV) delivered Lion Air (MLI)’s 7th leased Boeing 737-800.
September 2015: News Item A-1: Irish lessor Avolon (AZV) has reached an agreement to be taken over by China’s Bohai Leasing. Bohai will pay $31 cash per common share for (AZV) in a deal with a total enterprise value of approximately $7.6 billion.
The $31 offer represents a 31% premium to Avolon (AZV)’s share price on July 13 of $23.73 per share, the closing price prior to the announcement of Bohai’s initial intention to acquire a 20% stake in (AZV). It is also a 55% premium on (AZV)’s initial public offering (IPO) at $20 per share in December 2014.
Bohai upped its bid to 100% of Avolon (AZV)’s shares after a 2nd, unnamed bidder entered the competition.
In August, the two sides announced an indicative offer price of $32 per share. The reduced $31 figure reflects significant volatility in global equity markets in recent weeks.
To reflect its commitment to the acquisition, Bohai will increase its deposit by +$100 million, to $350 million. It has already paid a deposit of $75 million. A further $200 million was due to be paid September 4, and the final $75 million will be paid by September 15. The total $350 million deposit represents approximately $4.25 per Avolon (AZV) common share and is payable in certain circumstances if the transaction is not consummated.
The deal is subject to regulatory approvals and the agreement of both companies’ shareholders. The transaction is expected to close by the 1st quarter of 2016.
Avolon (AZV) Chairman, Denis Nayden said, “Avolon (AZV) has delivered significant returns for all shareholders and we believe Bohai are the right shareholder for the (AZV) business in the next stage of growth.
“We believe Bohai will enhance (AZV)’s profile, positioning and relationships in the Chinese aviation market (a market which we believe offers one of the most compelling growth opportunities in global aviation over the next two decades).”
“Our vision at Bohai is to build each of our transportation finance businesses into global leaders,” Bohai (CEO) Chris Jin said. “Avolon (AZV) has delivered remarkable growth over the past 5 years to become a leading industry franchise with a distinct business model, and the company is a strong complement to our existing investment in the aircraft leasing sector.”
News Item A-2: Bohai Leasing (AZV), the (HNA) unit that is taking over Irish aircraft lessor Avolon Holdings in a deal valued at US$7 billion, has revealed its ambition to change the international aircraft leasing landscape by becoming the world's 3rd-largest player.
"In the future, Chinese lessors will account for a larger share of the global leasing market, how we differ from other Chinese lessors is, 1stly, specialization, and 2ndly, internationalization," Bohai Leasing's Chief Operating Officer (COO) Ren Weidong told the "South China Morning Post."
Bohai Leasing's purchase of New York-listed Avolon (AZV) for US$2.6 billion is not only the largest aviation deal from China by enterprise value, but also marks the first time a Chinese lessor has succeeded in taking over a Western one, after a Chinese consortium's failed attempt to buy the world's largest lessor, (ILFC) (ILF), back in 2012.
Ren said upon the deal's completion early next year, Bohai Leasing's total aircraft under management (including current and forthcoming fleet at its Hong Kong and mainland Chinese subsidiaries, Hong Kong Aviation Capital and Changjiang Leasing) would reach 525 planes worth 129.5 billion yuan.
"This means we are already larger than (BBAM) (BBB), making us the world's No 3 in aircraft leasing," he said, adding that Bohai Leasing was already the world's largest shipping container lessor, after its acquisition of Cronos and Seaco.
A total of 14 units make up the (HNA) aviation and shipping conglomerate's leasing arm, including 7 focused on aircraft leasing. Bohai Leasing is expected to merge the 2 overseas aircraft leasing units by downsizing Hong Kong Aviation Capital and moving its senior executives to join Avolon (AZV)'s in Ireland.
Ren declined to comment on any merger plans but said the Avolon (AZV) acquisition would help Bohai Leasing do more operating leasing to an international clientele. That was, in essence, asset management, he said, requiring sophisticated knowledge of aircraft residual value that many Chinese lessors had yet to learn.
"The purpose for a leasing company to invest in aircraft is to maximize the value in the asset through constant trading (buy low, sell high)," he said. "To be honest, most Chinese lessors have been doing very little in the management of an aircraft after it is delivered to a lessee, but that is key to your future return".
China's aircraft leasing companies have grown quickly in numbers and size to rank among the world's largest, since they emerged in the late 2000s, but Thomas Kaplan, a Hong Kong-based analyst at aviation consultancy, Ascend, said most had focused on doing finance leasing and few had experience in dealing with operator default or finding aircraft a 2nd home, after the 1st lease term of 8 to 10 years expired.
While Bohai Leasing's purchasing price of Avolon (AZV)'s shares (at a 55% premium over its initial public offering price in December) is considered too high by some market observers, Ren said Avolon (AZV) was "a very good example where shareholders' interests had been maximized through constant transaction of aircraft portfolios since it was formed in 2000".
Shenzhen-listed, Bohai Leasing raised 1.5 billion yuan through 2 bond issuances this month. It also has a pending private placement plan to raise 16 billion yuan.
"The [leasing] market is in an upward cycle despite some volatility . . . we expect nearly 70% of China's demand forecast by Boeing (TBC) for more than 6,000 new planes worth US$950 billion in the next 20 years will be provided by lessors," Ren said.
"Aircraft leasing in China has entered the asset management age," he said, adding that Bohai Leasing (AZV) had set up a joint venture (JV), Tianjin Air Capital, with the Tianjin Dongjiang free trade port government, to provide aircraft asset management consultancy services to 3rd parties.
News Item A-3: Avolon (AZV) delivered a 4th and final Boeing 737-800 to Aeromexico (AMX).
October 2015: News Item A-1: "Avolon Shareholders Approve Bohai Leasing Merger" by (ATW) Victoria Moores, October 21, 2015.
The shareholders of Ireland-based Avolon (AZV) have agreed to a merger of the lessor with China’s Bohai Leasing, which should be completed by the first quarter of 2016.
Around 87.5% of Avalon (AZV)’s shareholders voted on the deal during an extraordinary general meeting on October 21, giving approximately 99.8% backing to the merger and other administrative proposals linked with the transaction.
Under the deal, Avolon (AZV) will become a wholly owned indirect subsidiary of Bohai Leasing and it will delist from the New York Stock Exchange. “The parties currently expect to complete the merger no later than the 1st quarter of 2016,” Avolon (AZV) said.
Bohai will pay $31 cash per common share for Avolon (AZV) in a deal with a total enterprise value of approximately $7.6 billion. Bohai upped its bid from 20% to 100% of Avolon (AZV)’s shares after a second, unnamed bidder entered the competition.
Avolon (AZV) had an owned, managed and committed fleet of 258 airplanes, serving 56 customers in 33 countries as of September 30, 2015.
December 2015: Avolon Capital Partners, Avolon (AZV)’s joint-venture (JV) aircraft leasing business with Wells Fargo, has acquired 1 Airbus A320-200 aircraft on lease to VivaAerobus (VVS). This is the 9th aircraft to deliver to Avolon Capital Partners (AZV).
January 2016: "Bohai Leasing Completes Avolon Acquisition" by (ATW) Victoria Moores, January 11, 2016.
Chinese firm, Bohai Leasing has completed its $7.6 billion acquisition of Irish lessor, Avolon (AZV), ranking its parent company the (HNA) Group as the world’s 4th largest lessor by asset value.
The (HNA) Group’s leasing interests now include Avolon (AZV), Bohai and Hong Kong Aviation Capital. “Avolon (AZV) will be the core aircraft leasing brand for Bohai Leasing and its parent, the (HNA) Group, and assumes management of the Hong Kong Aviation Capital (HKAC) business, another Bohai subsidiary,” (AZV) said.
Following the acquisition, (AZV) has become a wholly owned, indirect subsidiary of Bohai Leasing and its shares have ceased trading on the New York Stock Exchange.
Avolon (AZV) will remain headquartered in Dublin under its existing management, with a strategic Asian regional head office in Hong Kong and offices in Dubai, Shanghai, Singapore and the USA. “With a fleet of over >500 aircraft, we are now the world’s 4th largest aircraft leasing firm,” (AZV) (CEO), Dómhnal Slattery said, including the wider (HNA) Group in that total.
(AZV) has 105 Airbus A320neos and A330neos on order, plus 20 Boeing 737 MAXs and 6 787-9s. “We see significant opportunities for growth under Bohai’s ownership,” Slattery said, adding that Avolon (AZV)’s medium-term objective to become one of the world’s top-3 aircraft lessors.
Bohai Leasing is majority owned by the (HNA) Group, which owns stakes in 25 airlines: 20 in China, plus others in Brazil, France, Portugal, South Africa, and Turkey.
The (HNA) Group also owns nine airports in China (with plans to invest in airports in other markets) along with European maintenance, repair and overhaul (MRO) firm, myTechnic, plus ground and cargo handling giant Swissport.
Bohai initially wanted to take a strategic stake of 20% in Avolon (AZV), but upped this to bid for all of (AZV)’s shares after an unnamed rival bidder emerged.
March 2016: Avolon (AZV), the Irish-based lessor, has delivered 1 Airbus A320-200 aircraft to Batik Airlines (BTK) and 1 Boeing 737-800 airplane to Fuzhou Airlines (FZH), a subsidiary of the Hainan Airlines (HNA) group. This is the 2nd (AZV) airplane on lease to Batik (BTK) and the 3rd Avolon (AZV) aircraft on lease to the Hainan Airlines (HNA) group.
May 2016: News Item A: Avolon Leasing (AZV) delivered 1 Boeing 737-800 airplane to Thai Lion Air (TLM). This is the 1st Avolon (AZV) airplane on lease to (TLM).
News Item A-2: Avolon (AZV) has delivered its 1st Airbus A320neo aircraft, which is the 1st of a number of A320neo sale and leasebacks contracted with IndiGo (IGO). It brings the number of aircraft leased by Avolon (AZV) to IndiGo (IGO) to 21.
July 2016: Irish lessor Avolon (AZV) delivered an Airbus A321-200 aircraft to USA-based ultra low-cost carrier (ULCC) Frontier Airlines (FRO). This is the 3rd (AZV) aircraft on lease to (FRO). (AZV) also delivered 1 Airbus A320-200 aircraft to airberlin (BER), its 8th aircraft on lease to the German carrier.
August 2016: 737-88L (61296, HS-DBW "NOK FAH KRAM"), leased to Nok Air (NKA).
October 2016: News Item A-1: "Avolon Acquisitions Boost (3Q) Statistics" by (ATW) Alan Dron firstname.lastname@example.org, October 28, 2016.
Ireland-based lessor Avolon (AZV) recorded a +67% increase in its fleet of owned, managed and committed airliners for (3Q) 2016 compared to the same period a year ago.
The number of airplanes rose from 258 to 432. The past quarter has seen Avolon (AZV) (recently acquired by Chinese company Bohai Leasing) take on 45 airplanes from the portfolio of fellow-lessor (GECAS) (GEF) for $2 billion.
The last 3 months have also seen it make a $10 billion purchase of (CIT) Group (SIL)’s leasing business, which will add a further 400-plus airplanes to its fleet when the deal is finalized.
In a (3Q) trading update, Avolon (AZV) said it delivered 31 airplanes over the past 3 months, including 22 from the (GECAS) (GEF) portfolio, to 19 customers.
The company sold 11 airplanes, 7 from its owned fleet and 4 from its managed fleet. Letters of intent (LOI) were executed for sale of a further 13 airplanes.
Avolon (AZV) added that it had increased secured and unsecured committed debt facilities by >$1 billion in the period, strengthening its balance sheet and providing additional liquidity to accelerate growth.
Also secured was a commitment for $8.5 billion of debt finance, underwritten by Morgan Stanley and (UBS), for the acquisition of the (CIT) Group business.
Avolon (AZV) said 23 airplanes from the (GECAS) (GEF) portfolio are scheduled to be delivered in (4Q).
The average age of (AZV)’s owned fleet is 3.2 years, with an average remaining lease term of 7.5 years at the end of 33. Its customer base increased to 84 airlines in 40 countries.
News Item A-2: Avolon Leasing (AZV) delivered one Boeing 737-800 to Aerolíneas Argentinas (ARG), the Irish lessor’s 1st to Argentina’s flag carrier.
News Item A-3: Falco Regional Aircraft purchased 2 E190s (519/522; leased to (KLM) Cityhopper (AUK) from Avolon (AZV).
December 2016: Avolon (AZV) delivered 1 Boeing 737-800 to Malaysia-based Malindo Air (MXD). This is the 4th Avolon aircraft on lease to (MXD). (AZV) has also delivered 1 737-800 to Aerolíneas Argentinas (ARG). This is the 3rd (AZV) aircraft on lease to (ARG).
January 2017: Irish lessor Avolon (AZV) expanded its owned and managed fleet by 72% to 262 aircraft in 2016.
(AZV) described 2016 as a “transformational year,” during which it was acquired by Bohai Capital, integrated Hong Kong Aviation Capital (HKAC) into its business, acquired a $2 billion portfolio of 45 aircraft from (GECAS) (GEF) and struck an agreement to acquire the (CIT) Group’s leasing business.
Detailing its year-end results on January 24, Avolon (AZV) said it delivered 74 aircraft and sold a further 35 during the 12-month period.
While (AZV)’s fleet stood at 262 aircraft, with an average remaining lease terms of 7.3 years, the fleet total increases to 435 including aircraft commitments. “This fleet will effectively double again in 2017 on completion of the acquisition of the aircraft leasing business of the (CIT) Group,” Avolon (AZV) said.
(AZV) is preparing for the (CIT) Group aircraft leasing transaction and has raised $8.5 billion on the capital markets to finance the acquisition.
At year-end, Avolon (AZV) had 85 airlines customers spanning 40 countries.
February 2017: Irish lessor Avolon (AZV) delivered 1 Airbus A320neo to Garuda Indonesia (GIA). This is the 8th Avolon (AZV) aircraft on lease to (GIA).
May 2017: China’s booming air travel market will require 3,200 new airliners over the coming decade, with >50% still to be ordered, according to a new study released by lessor Avolon (AZV).
Ireland-headquartered (AZV), which was bought by China’s Bohai Leasing in 2016, is the world’s 3rd-largest leasing business with a portfolio of close to 850 owned, managed and committed aircraft as of March 31.
In its white paper on the Chinese market, Avolon (AZV) said China is the largest generator of outbound passengers, with >120 million people taking overseas flights in 2016. Significantly, this is still <10% of the country’s population.
It also noted the country’s international air traffic has been growing at an annual rate of +14% since 2010 (well above the global average) and China’s fleet of 2,800 aircraft has been expanding by +11% annually since that date. It currently represents 13% of the world airliner in-service fleet.
However, this fleet has a high percentage of narrow body aircraft compared to the average for the rest of the world, with Chinese airlines having a relatively low proportion of wide body types.
Over the coming decade, Avolon (AZV) believes that of the 1,700 aircraft still to be ordered by the nation’s carriers, 1,150 will be narrow bodies, 150 will be regional jets and 400 will be wide body types.
“China offers an attractive long-term growth opportunity for domestic and international airlines, aircraft Original Equipment Manufacturers (OEM)s and aircraft leasing companies,” (AZV)’s Head of Strategy and author of the study, Dick Forsberg, said.
“Competition for airlines is likely to be intense, as Chinese airlines focus on capturing their growth potential while being challenged by international carriers. There is also great potential for (OEM)s and lessors to capitalize on the under-ordered position of the Chinese industry, particularly in the wide body segment of the market.”
The report cautions that the recent surge in new Chinese airlines entering the international market may be unsustainable, especially as local government launch subsidies run out.
The nascent Chinese airliner manufacturing industry is anticipated to capture an increasing percentage of narrow body sales with the appearance of the (COMAC) C919 and the earlier ARJ-21 regional jet.
August 2017: Avolon (AZV), 1 of the world’s largest lessors, believes that Boeing (TBC)’s recent launch of the 737 MAX 10 will significantly improve (TBC)’s share of the narrow body market, but probably at the cost of limiting sales of the smaller 737 MAX 9.
In an assessment of the 737 MAX range, Ireland-based (AZV) said Boeing (TBC)’s 737 MAX product strategy decisions had been reactive, “resulting in lower market share and a plethora of variants which do not all reflect actual market demand.”
It said that, in launching the re-engined A320neo, Airbus (EDS) had gained an advantage on (TBC), presenting it with a technical and commercial dilemma.
The re-engined 737 MAX had been Boeing (TBC)’s only option to compete against the A320neo in a timely manner, (AZV) said. A clean-sheet design would have entered the market several years after the A320neo and (TBC)’s ability to match the A320neo production rate with that of a new program would have taken several years to achieve, at the cost of market and customer share.
But in the rush to get the 737 MAX to market, Boeing (TBC) had neglected to consider and counter Airbus (EDS)’ key strength, the high-capacity A321neo, Avolon (AZV) said.
(AZV) said the launch of the 737 MAX 10 at the Paris Le Bourget Air Show in June had strengthened the overall family and had “already doubled Boeing’s market share in the large narrow body segment.” The airplane garnered a large crop of orders and commitments at Le Bourget.
However, “The 737 MAX 9 no longer serves as the lowest unit cost family member and is severely impacted by the launch of the 737 MAX 10. With only slightly improved unit cost over the 737 MAX 8, it is unclear what role remains for the airplane, which is expected to have a very limited future.”
Of the other members of the 737 MAX family, it described the 737 MAX 7 as “a niche product when performance and range is required. The market shift away from smaller variants has been driven by several factors, including unit price and the focus of the (LCC)s on larger models. A change in pricing strategy could stimulate further demand.
“The 737 Boeing MAX 8 remains the heart of the 737 MAX family and a key target for investors. The 737 MAX has maintained its cash operating cost (COC) advantage over the A320neo on a per seat and trip basis, although only by a small margin.
“The 737 MAX 10 will complete the 737 MAX family and will be a much improved competitor compared to the 737 MAX 9. It will be a capable seat cost machine for operators looking to grow beyond the 737-800 and 737 MAX 8. However, it will some have airfield performance limitations. The A321neo will remain the high density seat cost leader in this market.”
Avolon (AZV) added that, to date, 54% of Boeing 737 New Generation operators that had previously ordered new airplanes directly from Boeing (TBC) did not have commitments for the 737 MAX. “With delivery slots unavailable, pent-up demand exists, which supports the placement of lessors’ speculative orders.”
September 2017: Avolon Leasing (AZV) delivered 1 Airbus A320-200neo aircraft to Tianjin Airlines (GCR). This is the 4th aircraft (GCE) has on lease to (GCR).
October 2017: Avolon (AZV) had an owned/managed/committed fleet of 915 airplanes on September 30 vs 432 a year ago.
November 2017: "Avolon Finalizes Order for 75 Boeing 737 MAXs" by
Victoria Moores email@example.com November 20, 2017.
Dublin-based lessor Avolon (AZV) has finalized a firm order for 55 Boeing 737 MAX 8s and 20 737 MAX 10s, plus options for 20 737 MAX 8s, valued at nearly $11 billion at list prices. The order, which was originally announced as a memorandum of understanding (MPU) at the 2017 Paris Air Show, was announced as firm by Boeing on November 20.
“This is the largest single order that we have placed with Boeing (TBC) to date and underscores the scale of our ambition and the strength of our business. We have experienced strong interest in our initial 737 MAX orders and this incremental order reflects this demand,” Avolon (CEO) Dómhnal Slattery said.
Avolon has an owned, managed and committed fleet of 915 aircraft as of September 30, 2017 (including over 140 737 MAXs) ranking it among the 3 largest aircraft lessors. To date, the 737 MAX has accumulated >4,000 total orders from 92 customers.
December 2017: Irish lessor Avolon (AZV) delivered 2 Airbus A320-200neo aircraft to Tianjin Airlines (GCR). (AZV) now has a total of 6 aircraft on lease to (GCR).
February 2018: News Item A-1: Dublin-based Avolon (AZV) reported a +$550 million profit for the year, a +59.4% rise over its +$345 million profit after tax in 2016. In 2017, (AZV) became 1 of the top 3 global airplane lessors with its purchase and integration of the (CIT) Group’s aircraft leasing business.
Avolon (AZV) is a wholly owned indirect subsidiary of China’s Bohai Capital Holding. Bohai, a unit of Chinese conglomerate the (HNA) Group, acquired (AZV) in January 2016. (AZV) launched as a standalone company in 2010.
(AZV)'s 2017 revenues more than doubled to $2.4 billion, compared to $1 billion in 2016. (AZV) (CEO) Domhnal Slattery described 2017 as “transformative” and said the company was a “more strategically relevant business than at any time in our history.”
Detailing its year-end results on February 22, Avolon (AZV) said it made 107 aircraft transactions in 2017, including 45 aircraft deliveries and sales of 29 owned aircraft and 15 managed aircraft. In November, (AZV) finalized an order for 55 Boeing 737 MAX 8s and 20 737 MAX 10s, plus options for 20 additional 737 MAX 8s, valued at nearly $11 billion.
By December 31, (AZV)’s owned, managed and committed portfolio had grown to 908 aircraft, more than doubling year-over-year, with the owned fleet averaging 5.3 years in age and the remaining lease term on the delivered fleet averaging 6.6 years.
(AZV) said it raised $14.9 billion in total debt and equity capital in 2017, including $9.8 billion raised on the capital markets.
(AZV) has come under scrutiny in recent months over its $365 million loan last year to parent Bohai Capital Holding. The loan has been repaid, according to comments Slattery made in January at the Global Airfinance Conference in Dublin, but concerns by (AZV)’s shareholders that loans were being filtered up to Bohai parent (HNA) Group persisted. Slattery reassured shareholders that Bohai was prohibited from providing any shareholder loans up the line to (HNA).
As of December 31, (AZV) reported its Fitch credit rating was BB and Moody’s Investors Service’s rating was Ba2, both of which Bloomberg described as “still in speculative or ‘junk’ territory.”
News Item A-2: Irish lessor Avolon (AZV) delivered 1 Airbus A320neo aircraft to Air India (AIN)/(IND). This is the 8th Avolon (AZV) aircraft on lease to (AIN)/(IND).
April 2018: News Item A-1: Irish lessor Avolon (AZV) closed out the 1st quarter of 2018 with an owned and managed fleet comprising 570 aircraft, with commitments for a further 333 aircraft, bringing its total fleet to 903, up +6.2% from (1Q) 2017.
The company delivered 6 new airplanes during the quarter, including 4 Boeing 787-9s (2 for Air Europa (ARE) and 1 each to Virgin Atlantic (VAA) and Norwegian Air (NWG)) and an Airbus A320neo for Air India (AIN)/(IND). Additionally, 13 airplanes were transitioned to secondary leases, 5 aircraft were sold, and 21 lease transactions (new leases, 2nd leases and lease extensions) were completed during the quarter. Significantly, on March 23 Avolon (AZV) established a “special purpose” securitization trust company (Sapphire Aviation Finance) with $768.4 million in fixed rate secured note backings by 3 issuers, backed by a portfolio of 41 mid-life (AZV) airplanes contracted to sell to Sapphire using the proceeds of the issuance.
The airplanews, which include 6 737-700s, 14 737-800s, 4 A319-100s, 8 A320-200s, 5 A330-200s, 2 767-300s, an A321-100 and an A330-300, have an appraised value of $962s.4 million and are on lease to 30 lessees in 19 countries, including Air Canada (ACN), Air Transat (AIJ) , Azul (AZL), Garuda Indonesia (GIA), Sri Lankan Airlines (LNK) and Qantas (QAN), among others.
“The disposal of 41 aircraft from the Avolon (AZV) fleet, facilitated by the launch of the Sapphire vehicle, opens another channel for (AZV) to bring 3rd party investment into the mid-life aircraft space, whilst increasing our managed fleet and expanding our footprint as a servicer in the ABS asset-backed securitization (ABS),” (AZV) (CEO) Domhnal Slattery said.
(AZV) became the world’s 3rd largest aircraft lessor following its purchase of the (CIT) Group (TCI)’s leasing arm in early 2017. Only USA-based lessor (GE) Capital Aviation Services (GECAS) (GEF) and Dublin-based lessor AerCap (DEA) have larger owned, managed and committed aircraft portfolios.
(AZV) is a wholly owned indirect subsidiary of China’s Bohai Capital Holding. Bohai, a subsidiary of Chinese conglomerate the (HNA) Group, acquired (AZV) in January 2016. (AZV) itself launched as a standalone company in 2010.
News Item A-2: (LOT) Polish Airlines will take 3 additional Boeing 787-9s on 12-year operational lease agreements with Irish lessor Avolon (AZV) beginning next year, (LOT) said April 24.
2 will be delivered in May 2019, the 3rd in October 2019. By that point, (LOT)’s fleet of 787s will total 15 aircraft.
(LOT)’s present fleet of 787 Dreamliners includes 8 leased-in 787-8s and 1 787-9. The 787-9, which was delivered to (LOT) in March, is the 1st of 3 787-9s (LOT) will operate on long-term lease with USA lessor Aviation Capital Group (ACG). The remaining 2 787-9s from (ACG) are scheduled for delivery to (LOT) this month (April) and February 2019. The 4th 787-9 previously ordered is on long-term lease with USA lessor Air Lease Corporation (ALE) and is set for delivery during the 2018 2nd quarter, according to (ALE).
With (LOT)’s 1st 787-9 operating regular flights to Chicago and Toronto; the next 787-9, due this month, will fly between Warsaw and New York-(JFK), as well as some flights to Seoul, South Korea. (LOT) said it is in talks to purchase another 3 wide- and narrow-body airplanes, and is waiting on delivery for 4 out of 6 737 MAX 8s (LOT) has on order through (ALE); and 5 out of 6 Embraer E195s (lessor identity unavailable). Additionally, 2 Bombardier Q400 turboprops are expected to be added to (LOT)’s fleet “for at least 6 months.”
“At present we operate 13 direct long-distance flights and each new machine is an opportunity to launch another 1 or 2 new routes,” (LOT) Corporate Communications Head Adrian Kubicki said. In addition to the New York (JFK) and Seoul routes, (LOT)’s 787 fleet also operates direct flights from Warsaw to Newark, Chicago, Toronto, Los Angeles and Tokyo, as well as Kraków to Chicago and Rzeszów to Newark routes. In May, (LOT) plans to launch new long-haul routes including Warsaw to Singapore and flights from Budapest, Hungary to New York and Chicago.
“(LOT) is the 1st airline in Europe [with a] long-haul fleet consisting only of 787 Dreamliners,” (LOT) (CEO) Rafael Milczarski said in March. “[The] 787 Dreamliner is the driver of even faster growth of (LOT) [with the 787-9] significantly increasing the number of seats on the existing, most popular routes. The 787-9 will be perfect for our flagship flights to Chicago, New York City or selected Asian destinations and will enable us to launch completely new routes.”
May 2018: Avolon (AZV) delivered 2 Airbus A320neos to Air India (AIN)/(IND) and are the 9th and 10th Avolon aircraft on lease to (AIN)/(IND).
July 2018: Ireland-headquartered lessor Avolon (AZV) inked 50 lease transactions, delivered 13 aircraft and sold 41 during the 2nd quarter of 2018.
The leases included new agreements, 2nd leases and extensions, taking (AZV) to a customer base of 156 airlines in 64 countries (5 more than in (2Q) 2017.
By the end of the period, (AZV) had an owned and managed fleet of 562 aircraft, down -2%, with an average owned fleet age of 5.2 years and 6.6 years of lease remaining.
Including committed aircraft, the portfolio was -3% down at 921. Fleet utilization stood at 99.7%.
The bulk of the sales (28 aircraft) were sold to the Sapphire Aviation Finance securitization vehicle.
Avolon (AZV), which is a wholly owned indirect subsidiary of China’s Bohai Capital Holding, also established an asset management platform called Jade Aviation with Chinese company Cinda Asset Management. (AZV) took a 20% stake in the venture, with Cindra Leasing holding the remaining 80% shareholding.
“(AZV), as asset manager, will be the exclusive provider of aircraft to Jade Aviation and Cinda will provide the debt financing for the vehicle, thereby combining (AZV)’s lease management service expertise with Cinda’s access to deep pools of capital within Asia,” (AZV) said.
Jade Aviation has agreed to acquire a seed portfolio of 7 aircraft, sourced from (AZV)’s portfolio.
August 2018: Japan’s (ORIX) is to Acquire a 30% Stake in Irish Lessor Avolon" by Victoria Moores (firstname.lastname@example.org), August 8, 2018.
Japanese financier (ORIX) is set to acquire 30% of Irish lessor Avolon (AZV) from China’s Bohai Capital for $2.2 billion, with completion expected in the 4th quarter of 2018.
Announcing the deal on August 8, (AZV) said the buy-in from (ORIX)’s Ireland-based (ORIX) Aviation Systems subsidiary will provide “a significant credit enhancement,” valuing its overall business at $23.7 billion.
Bohai will remain an (AZV) shareholder, albeit with a smaller stake, and the agreement remains subject to approval from Bohai’s largest shareholder, the (HNA) Group. After a wave of rapid global acquisitions, (HNA) hit liquidity problems and has been selling off assets from its portfolio. (AZV) said it has already secured (HNA)’s “commitment” to the transaction.
(ORIX) was established in 1964 and has a wide portfolio of business interests, spanning energy, private equity, infrastructure, automotive, shipping, aircraft, real estate and retail financial services. (ORIX) entered the aircraft-leasing business in 1978 and set up Dublin-headquartered (ORIX) Aviation in 1991. For the 12 months to March 31, (ORIX) as a whole reported revenue of $25.6 billion and $2.8 billion net income.
“(ORIX) is a strong, investment-grade institution with a proven track record in the leasing sector over multiple industry cycles,” (AZV) (CEO) Dómhnal Slattery said. “We will benefit from (ORIX)’s experience and relationships.”
Specifically, the deal will boost (AZV) profile in the Japanese financial markets and pave the way for cooperation with (ORIX) Aviation’s leasing, asset management and trading activities.
As of June 30, Avolon (AZV) had a portfolio of 890 owned, managed and committed aircraft, while (ORIX) Aviation owns and manages >200 aircraft, leased to >70 airlines in >30 countries.
“By virtue of the acquisition of the shares of (AZV), (ORIX) aims to achieve sustainable long-term growth of its business by way of strengthening its access to the manufacturer order positions that (AZV) holds and also further expanding its aircraft-leasing business investment,” (ORIX) said.
On completion, (ORIX) will have 2 seats on the (AZV) board, alongside 3 Bohai directors, Slattery and 1 independent director. “Our new shareholder structure and the associated enhancements to our governance framework will also accelerate our momentum towards an investment grade rating (a key objective for our business).”
Currently, approximately 40% of commercial aircraft worldwide are sourced on operating lease, but this is forecasted to increase to almost 50% in the future.
Click below for photos:
AZV-737 MAX 8 - 2012-09
AZV-787 AND 737 MAX 9 - 2014-09
AZV-A330-900neo - 2014-12
5 737-800 (CFM56-7B), LEASED TO (RYR) 2011-10.
1 737-800 (CFM56-7B) LEASED TO THAI LION AIR (2016-05).
1 +11 ORDERS 737-800 (CFM56-7B), 1 TO (JAL)/(JAS).
10 ORDERS (2015-02) 737-800 (CFM56-7B):
1 737-800 (CFM56-7B) LEASED TO (ARG) 2016-10.
2 737-8KN (CFM56-7B) (40246, A6-FDS; 40247, A6-FDT), LEASED TO (FDB) 2011-06.
1 737-88L (CFM56-7B) (61296, HS-DBW "NOK FAH KRAM"), LEASED TO NOK AIR (NKA) 2016-08.
1 737-89P (CFM56-7B) (40951, B-5731), LEASED TO (CEA) 2013-01.
55/20 ORDERS (2018-02) 737 MAX 8:
5 ORDERS (2018-02) 737 MAX 9:
20 orders (2018-02) 737-MAX 10:
20 ORDERS A320neos 2 DELIVERED TO TIANJIN AIRLINES (GCR) 2017-09 & 2017-12.
4 A320-200, LEASED TO (ASW) 2011-10.
1 A320-200 LEASED TO (BER) 2016-07.
8 ORDERS A320-200, WITH SHARKLET WINGLETS:
1 A320-200neo LEASED TO TIANJIN AIRLINES (GCR) 2017-01.
1 A320neo LEASED TO AIR INDIA (AIN)/(IND) 2017-02.
2 A321, TO BE LEASED TO (AMW)/(USA) IN 2012.
3 A321-200 LEASED TO (FRO) 2016-07.
15 ORDERS A330neo:
Click below for photos:
AZV-1-DENIS NAYDEN - 2012-09
AZV-1-DOMHNAL SLATTERY - 2012-09
DENIS NAYDEN, CHAIRMAN, EX-(GE) (email@example.com).
Denis J Nayden is a Managing Partner of Oak Hill Capital, a private equity firm in which Robert M Bass is the lead investor. At Oak Hill Capital, Denis heads the industry groups focused on investments in Basic Industries and co-heads the Business & Financial Services team. Currently, he represents Oak Hill Capital on the boards of directors of Accretive Healthcare, Firth Rixson Ltd, Genpact, The Jacobson Companies, Primus International and (RSC) Equipment Rental.
Prior to joining Oak Hill in 2003, Denis was Chairman & (CEO) of (GE) Capital, where he was responsible for 20 separate businesses representing $555 billion of aggregate assets and 90,000 employees in 35 countries. During his 26-year tenure at General Electric Company (GE), Denis also served as Chief Operating Officer (COO) (1994 to 2000); Executing VP (1989 to 1994); Senior VP & General Manager in the Corporate Finance Group (1987 to 1989); and Marketing Administrator for Air/Rail Financing as well as various other positions of increasing responsibility (1977 to 1987).
In addition to the boards of directors mentioned above, Denis also serves on the board of directors of Cathedral Cluster Schools and build On (a non-profit organization). Denis earned a B A degree in English, magna cum laude, in 1976 and an (MBA) in Finance in 1977 from the University of Connecticut, where he serves on the Board of Trustees.
CHRIS JIN, CHIEF EXECUTIVE OFFICER (CEO), BOHEI LEASING (2015-09).
DOMHNAL SLATTERY, CHIEF EXECUTIVE OFFICER (CEO), EX-(GEF) (firstname.lastname@example.org).
Dómhnal began his aviation financing career in 1989, initially in marketing roles with Guinness Peat Aviation (GPA) and (GECAS) (GEF). In 1994, he established his own airplane advisory and investment banking services company, the International Aviation Management Group (IAMG). Over the following 7 years, (IAMG) arranged airplane asset and related transactions amounting to >US$5 billion in value on behalf of a wide range of leading airline and investor clients world wide. In 2001, the Royal Bank of Scotland Group acquired (IAMG) as the launch platform of RBS Aviation Capital. Dómhnal was (CEO) of this business from 2001 to 2004 and went on to become Managing Director of the Structured Asset Finance business for the Royal Bank of Scotland Group. He continued as a non-executive Director of RBS Aviation Capital until January, 2008. Dómhnal has a Bachelor of Commerce (Hons) from University College Galway and is a graduate of the Accelerated Development Program from the London Business School.
JOHN HIGGINS, PRESIDENT & CHIEF COMMERCIAL OFFICER (CCO), EX-(GEF) (email@example.com).
John has 17 years experience in Airplane Finance. He trained and qualified as a Chartered Accountant with Price Waterhouse. John joined (GPA) in 1994 as Treasury Manager working primarily on the refinancing of the (GPA) debt facilities. He subsequently joined (GECAS) (GEF) in 1996, where he held a number of marketing roles dealing with airlines and manufacturers throughout the (EMEA) region. John joined (RBS) Aviation Capital in 2004 as Head of Origination for Europe, Middle East, Africa & Asia and in 2007 was promoted to Chief Commercial Officer (CCO) with global responsibility for all airline and Original Equipment Manufacturer (OEM) relationships (including new business origination, airplane remarketing and new order placement). John has a Bachelor of Science (Management) from Trinity College Dublin and is a Fellow of Chartered Accountants Ireland.
REN WEIDONG, CHIEF OPERATING OFFICER (COO) BOHAI LEASING (2015-09).
ANDY CRONIN, CHIEF FINANCIAL OFFICER (CFO) (firstname.lastname@example.org).
Andy started his professional and aviation industry career in 2000 with FLS Aerospace Ltd, where he spent four years starting as a Project Engineer and progressing to a variety of management positions. He joined RBS Aviation Capital in 2004 as a Business Analyst before being appointed Senior VP Investor Markets in 2005, having responsibility for the disposal, financing and debt syndication of operating lease and structured debt products to a wide pool of investor and bank communities. From 2008, he was extensively involved in the financial planning and balance sheet structuring of RBS Aviation Capital. Andy has a Bachelor of Engineering and a Masters of Industrial Engineering, both with First Class Honors from University College Dublin. He was awarded the Deloitte Gold Medal for achieving 1st Place in his Masters class.
TOM ASHE, CHIEF OPERATING OFFICER (COO) & HEAD RISK MANAGEMENT, EX-(DEA) (email@example.com).
Tom has 17 years experience in the aviation industry. A Chartered Accountant by profession, he joined (GPA)/AerFi in 1994 and held responsibility for Financial Planning until 2000 when, following the company’s acquisition by debis/Aercap (DEA), he assumed responsibility for originating airplane and engine trading opportunities. He joined (RBS) Aviation Capital in 2002 as a Senior VP in the (EMEA) origination team, becoming Head Origination for (EMEA) in 2007. Tom joined Avolon (AZV) in April, 2010. Tom has a Bachelor of Commerce (Hons) and Diploma in Professional Accounting from University College Dublin and is a Fellow of Chartered Accountants Ireland.
ED RILEY, GENERAL COUNSEL, EX-(GEF)/(EDS) (firstname.lastname@example.org).
Ed began his career at Clifford Chance in London, where he qualified as a solicitor in 1999. Specializing in Airplane Finance, he advised airlines, banks and lessors and also completed a secondment at (GECAS) (GEF). He then spent 6 years from 2001 as Senior Legal Counsel with Airbus (EDS) in Toulouse before joining (RBS) Aviation Capital as Senior VP, Commercial Negotiation with responsibility for leading the negotiation of transaction documentation with airlines, financiers, operating lessors and export credit agencies. Ed has a Bachelor of Arts (Hons) in Modern Languages from The University of Durham and a Diploma in Law and a Diploma in Legal Practice from The College of Law, York. He was admitted as a Solicitor in England and Wales in 1999.
DICK FORSBERG, HEAD STRATEGY, EX-(GEF) (email@example.com).
Dick has 40 years aviation industry experience working in a variety of roles with airlines, operating lessors, arrangers and capital providers in the areas of business strategy, industry analysis and forecasting, asset valuation, portfolio risk management and airline credit assessment. His most recent role has been Head of Strategy at (RBS) Aviation Capital, where responsibilities included defining the trading cycle of the business, creating and maintaining an asset valuation capability, setting portfolio risk management criteria and determining capital allocation targets. Prior to (RBS), Dick worked with the (IAMG), (GECAS) (GEF) and (GPA) following a 20-year career in the UK airline industry. Dick has a Diploma in Business Studies and in Marketing from the UK Institute of Marketing and is a member of the Royal Aeronautical Society (R Ae). Dick is also a Director of the Board of The International Society of Transport Aircraft Trading (ISTAT).
DONAL O'NEILL, HEAD INVESTOR RELATIONS (2015-05).
LUCAS MOLLAN, CHIEF TECHNICAL OFFICER (CTO), EX-(JMA)/(GUE)/(EDS) (firstname.lastname@example.org).
Lucas has 28 years of experience in Technical Management. He previously served as Managing Director of Thomas Cook (JMA)/(GUE) Aircraft Engineering, where he was responsible for the provision of in house maintenance and engineering support to the various Thomas Cook Airline (JMA)/(GUE) fleets, totaling over 60 airplanes. He was also responsible for the purchasing and management of outsourced Maintenance Repair & Overhaul (MRO) services such as engine overhaul, component support services and heavy maintenance, and for the provision of aircraft maintenance and technical support services to third party airline customers. Prior to this, Lucas served in senior technical roles for several UK airlines, including Air 2000, JMC Airlines and MyTravel Airways. Lucas has also previously worked for Airbus (EDS), assisting airlines to introduce new Airbus (EDS) airplanes into their fleet. Lucas has a Bachelor of Science (Hons) in Aeronautical Engineering from Bristol University and is also a licensed UK (CAA) Aircraft Maintenance Engineer.
SIMON HANSEN, MANAGING DIRECTOR, HEAD ASIA (BASED IN SINGAPORE) (email@example.com).
Based in Singapore, Simon is responsible for co-ordinating Avolon (AZV)’s airline and investor relationships and business development activities in the Asia Pacific. Prior to Avolon (AZV), he was on the (RBS) team that negotiated the acquisition of the (IAMG) and managed the foundation of (RBS) Aviation Capital in 2001. Having previously spent 8 years in the UK banking sector, he joined (RBS) Aviation Capital at its foundation, initially as an originator in Europe. He moved to Hong Kong in 2002 to establish a new office and create a local franchise. In 2007, he was appointed Managing Director, Head of Asia Pacific with overall responsibility for (RBS) Aviation Capital’s origination activities in the region. Simon has a Bachelor of Arts (Hons) in Financial Services from Sheffield Hallam University and an (MBA) from Warwick Business School. He is an Associate member of the Chartered Institute of Bankers, UK and a member of the Association of Corporate Treasurers.
PAT HANNIGAN, HEAD EUROPE, MIDDLE EAST & AFRICA, EX-(GEF) (firstname.lastname@example.org).
Pat started his aviation career in 1999 having worked in a variety of non-aviation related senior finance and marketing roles since 1987. For 5 years from 1999, he was VP Marketing with (GECAS) (GEF) covering (EMEA) and was based in the USA and Dubai for some of this period. He joined (RBS) Aviation Capital in 2004 as Senior VP Aircraft Finance & Leasing, where he was responsible for a number of key airline relationships. Pat is a Fellow of Chartered Accountants Ireland.
SUSAN HAO GAO, HEAD GREATER CHINA, EX-(CGP)/(CEA) (email@example.com).
Susan joined Avolon (AZV) from (HSH) Nordbank, where she was Senior VP Transportation, leading the (HSH) Transportation China Team from 2006 to 2010. Susan was the Marketing Director China for Aviation Capital Group (CGP) from 2002 to 2006, prior to which she spent 6 years working in the Finance Department of China Eastern Airlines (CEA). Susan has a Bachelor in Economics from Zhongnan University of Finance & Economics, Beijing and an (MBA) (Aviation) from the John Molson School of Business, Concordia University.
PAUL GEANEY, HEAD AMERICAS.
RANGA KARUMBUNATHAN, MANAGING DIRECTOR ORIGINATION, EX-(EAD)/(NWA)/(CDN) (firstname.lastname@example.org).
Ranga joined Avolon (AZV) from (BBAM), where he was the Senior VP & Head Middle East Marketing. He brings with him >15 years of experience in the aviation industry of which 10 were spent in Aircraft Finance. Ranga started his aviation career with an airplane parts manufacturer in Vancouver, Canada, before moving on to various management roles with Canadian Airlines (CDN), Northwest (NWA) and Emirates (EAD). Whilst at (EAD), he was involved in the financing of over 60 wide body airplanes raising >US$6 billion between 2002 and 2007. He subsequently joined (RBS) Aviation Capital in 2007 as Senior VP Investor Markets responsible for airplane trading, financing and debt syndication for the Middle East and Asia Pacific Markets. Ranga holds a Masters Degree in Industrial Engineering and an (MBA) from the University of British Columbia in Canada.