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CLJ-2011-02-WORLD APL LEASING-A
CLJ-2011-02-WORLD APL LEASING-B
CLJ-2011-02-WORLD APL LEASING-C
CLJ-2011-02-WORLD APL LEASING-D
CLJ-2011-02-WORLD APL LEASING-E
CLJ-2011-02-WORLD APL LEASING-F
CLJ-2011-02-WORLD APL LEASING-G
ESTABLISHED IN 1999. FORMERLY "AERGO CAPITAL" (CLJ). A JET AIRPLANE LEASING COMPANY.
16 CLANWILLIAM TERRACE
GRAND CANAL QUAY
DUBLIN 2, 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.
March 2006: Based on an "Airline Business" magazine survey of airplane leasing companies, Aergo Capital (CLJ) has a fleet of 38 airplanes valued at $76 million and is ranked 25th of the top 50 airplane leasing companies (see attached data).
It focuses on older 737's and MD-82's. It also manages narrow bodies for investors, banks and airlines with surplus airplanes.
July 2008: Dublin-based Aergo Capital (CLJ) reached agreement to acquire the aviation assets of South African Imperial Holdings, comprising Safair (SFA) and Safair Lease Finance. Aergo (CLJ) currently has 65 commercial airplanes on its portfolio on lease to 20 carriers and will add 31 with the Safair (SFA) acquisition.
December 2008: Safair (SFA) has taken delivery of 23 ex-Alitalia (ALI) MD-82s owned by parent AerGo Capital (CLJ). Four flown to (SFA)'s maintenance facility at Johannesburg, with the remainder stored at Upington Airport, until hangar space becomes available. MD-82's to be used for business opportunities in the Sub Sahara region. At least two wil go to 1Time (1TA).
December 2009: Subsidiary, Safair (SFA) has established a base in Nairobi, Kenya. (SFA) will base three airplanes at Wilson Airport and hopes to secure a number of contracts from Kenya Airways (KEN), whose owners include (KLM) and the United Nation's (UN)'s World Food Program. (SFA) will locate two 737-300s and one Hercules in Nairobi.
Parent, Aergo Capital (CLJ) Chief Executive Officer (CEO) Fred Browne said "There is a lot of demand in Kenya and we would like to double the size of the business in the next 12 months." (CLJ) is involved in wet and dry leasing and also has shareholding in an airplane maintenance facility at Johannesburg International airport.
March 2011: Aergo Capital was re-branded as AerCap (CLJ).
AerCap (CLJ) opened a new office in Johannesburg. (CLJ) said it plans to expand its operations in Africa, where it "already has a significant customer base." Former Safair (SFA) Operations (CEO), Christo Kok will head the office.
May 2013: AerCap (CLJ) is satisfied with the current market situation. It considers the leasing industry's unbreakable long-term growth, the huge backlog of airplane orders that will need to be financed and the fact that only ten or so big leasing companies have the global capacity to handle the demand. (CEO), Aengus Kelly acknowledged some potential for airplane lease rates to decline as US airline credit metrics improve, making it cheaper for airlines to borrow money to buy airplanes. But the USA tends to be a low-margin market for leasing anyway. It has never been seen that the airline industry has been an investment-grade industry. (CLJ) is very encouraged by demand especially for 737-800s and A330s, and sees lots of opportunities for big deals in the future. A320 rates are firming too, and AerCap (CLJ) has no major concerns about airlines defaulting on their lease payments.
May 2013: AerCap Holdings (CLJ)/(DEA) has entered into a $2.6 billion sale and leaseback agreement with the (LATAM) Airlines Group for 25 wide body airplanes. Deliveries are scheduled between 2013 and 2017.
The airplanes comprise “nine new A350-900s, four new 787-9s, and two new 787-8s from (LATAM)’s order backlog, and 10 A330-200s with an average age of four years. The appraised value of the 25 airplanes is approximately $3 billion.”
AerCap (CLJ)/(DEA) said it will purchase the airplanes from (LATAM) and immediately lease them back to (LATAM). (CLJ)/(DEA) expects to finance the airplanes with a combination of funding from the capital markets, the bank markets and its existing warehouse facility.
December 2013: The American International Group (AIG) has agreed to sell its airplane-leasing unit, International Lease Finance Corporation (ILFC) to Netherlands-based, AerCap (DEA) for $3 billion, the group said on December 16.
The transaction is subject to regulatory approval and the consent of AerCap (DEA)'s shareholders, however, the (AIG) expects to close the transaction by the second quarter of 2014. According to (DEA), the newly combined company would have a fleet of over >1,300 airplanes consisting of A320, A330 and 737NG plus 777 family airplanes.
(DEA)/(CLG) will also take over the (AIG)'s current order book, which includes $25 billion in-future deliveries.
The (AIG) had attempted to sell its airplane leasing business to a group of Chinese investors last year but the deal fell through when the group was unable to produce the necessary financing for the purchase.
Robert Benmosche, (CEO) of the (AIG), said the sale was a move to focus on the (AIG)'s core insurance business. "The combination of AerCap (DEA)/(CLG)’s young fleet of in-demand airplanes and proven portfolio management capabilities with (ILFC)’s attractive order book and broad marketing reach will continue to lead the industry. However, as we have said all along, the airplane leasing business is not core to our insurance operations. Upon completion, the transaction will have a positive impact on the (AIG)’s liquidity and credit profile and will enable us to continue to focus on our core insurance businesses," said Benmosche.
AerCap (DEA)/(CLG) will retain its name for the combined company, once the transaction is competed and (ILFC) will become a wholly owned subsidiary of AerCap (DEA)/(CLG). "AerCap (DEA)/(CLG)'s acquisition of (ILFC) will create the leading global franchise in the airplane leasing industry. This transaction presents a unique strategic opportunity to bring together the outstanding and experienced personnel from both companies and two attractive portfolios of modern airplanes on lease to a highly diversified customer base. Further, we believe AerCap (DEA)/(CLG) will now have the most attractive order book in the industry," said (DEA)/(CLG) (CEO), Aengus Kelly.
May 2014: Netherlands-based AerCap Holdings (DEA)/(CLG) has completed the acquisition of USA lessor International Lease Finance Corporation (ILFC) (ILF).
AerCap (DEA)/(CLG) unveiled plans to acquire (ILFC) from the American International Group (AIG) in December 2013. “Under the terms of the agreement, AerCap (DEA) paid (AIG) $3 billion in cash and 97,560,976 AerCap ordinary shares, which represents an approximately 46% ownership position in AerCap’s ordinary share capital,” AerCap said.
Following the deal, (AIG) President & (CEO), Robert Benmosche and (AIG) (CFO)/Executive VP, David Herzog have joined AerCap (DEA)’s board. The remainder of AerCap (DEA)’s senior management team will comprise AerCap (CEO), Aengus Kelly, Keith Helming as (CFO), Philip Scruggs as President/(CCO), and Erwin den Dikken as (COO).
In tandem with the acquisition, AerCap (DEA) secured $3.75 billion in new credit lines, $1 billion of which is to be provided by (AIG). Kelly said this gives the company ample liquidity and capital resources for its future growth.
“With approximately $45 billion of assets coupled with a diverse fleet of 1,300 airplanes and an attractive forward order book, AerCap (DEA) will be a driving force in the industry,” Kelly said. AerCap (DEA) has another 363 airplanes on order.
July 2014: At the Farnborough Airshow, AerCap Holdings (CLJ) said it will buy 50 A320neo jets valued at about $6 billion.
October 2014: The European airline market remains too fragmented, with 35 carriers handling 80% of traffic compared with just four in the USA, AerCap Holdings (CLJ) Head of Europe, Middle East & Africa, Kenneth Wigmore said.
Netherlands-based, AerCap Holdings (DEA) and USA lessor, International Lease Finance Corporation (ILFC) (ILF) have just completed their Information Technology (IT) systems integration, marking one of the final hurdles for the $3 billion acquisition.
November 2014: Using paper-based documentation on completion of an airplane lease might be adding up to +$350,000 per airplane to the bill, say leasing companies. But the reason many leasing companies are still using paper documentation for leasing handovers has been described as a “Catch-22” situation.
Speaking at the Maintenance Repair & Overhaul (MRO) Asia Conference in Singapore, AerCap (CLJ) Assistant VP, Jock Seals said he calculated the potential saving his company could have made on recent leasing transfers (if they had all used paperless document environment) was more than >$40 million.
“If you transfer the savings, we could have seen using paperless documentation to the 116 airplanes we handled in the last 12 months, that could have saved us -$41 million,” he said.
But, Seals said, the Catch-22 is that many civil aviation authorities are waiting for airlines to say, “That’s what we want” and yet airlines are saying, “We are reluctant to move to new systems or ask the (CAA)s, in case they say no.”
Paperless documentation system vendor FLYdocs agreed, saying the current requirement to deliver boxes and boxes of printed out certificates and paper trails was totally outdated in the current digital business climate. “We need to move from the Dark Ages when it comes to compliance documentation,” FLYdocs Senior Technical Manager, Steve Haxell said.
Haxell said it wasn’t unusual to have an airplane handover from a leasing company delayed by several months simply because the required documentation was either missing or incorrect. “There are no standards — and there need to be,” he said.
Seals pointed out that simply using scanned-in copies of paper certifications already saves considerable time and cost, but that moving to fully digital systems (where standard documents could be filled in with a standard format, electronically) would make a huge difference.
“The (FAA) is fully behind this, and (EASA) is gradually coming on board, but we need [international] standards to make it happen, he added.
Ken Jones, Director, Electronic Data Standards for (ATA)’s e-Business, noted that with some 40% of the world’s airplane fleet now leased, this problem would only increase, unless further action is taken to push paperless compliance.
Jones cited the example of Cathay Pacific Airways (CAT), which he said was working very hard to move to an all-digital documentation system across its airplanes.
“But this won’t happen all at once. We would like to see a hybrid system adopted initially, with some digital and some document based. But it’s going to take some time,” he said.
December 2014: San Diego, California, USA based PACAVI Group has revealed it is spearheading a program to convert Airbus A320and A321 airplanes from passenger to freighter configuration. The conversions will be performed by AeroTurbine (AUB), a wholly owned subsidiary of AerCap CLJ)/(DEA), one of the world's largest airplane leasing companies.
The work will be carried out at AeroTurbine (AUB)'s Goodyear, Arizona facility, where it conducts passenger to freighter conversions on other airplane types, as well as providing maintenance repair & overhaul (MRO) services for A320s.
(CEO) Dr Stephen Hollman said "We view this as an exciting opportunity. There are currently about 600 freighters of the size category of the A320/A321 operating globally, and this market is set to grow rapidly in the coming years. Right now, the only products of of similar capacity are from Boeing (TBC) and we look forward to the opportunity to provide Airbus (EDS) and others with technologically advanced freighters at a highly competitive price."
Airbus (EDS) canceled a similar program in June 2011, after deciding to focus on its airplane manufacturing business, but since then, demand has increased. Hoffman daid all the information required in order to acquire the Supplemental Type Certificate (STC) was publicly available. With close collaboration with the (FAA) and (EASA) on the technical requirements, the PACAVI Group is forecasting commercial deliveries starting in 2017.
June 2015: News Item A-1: AerCap Holdings (DEA)/(CLJ) ordered 100 Boeing 737 MAX 8s at the Paris Air Show. The order, valued at $10.7 billion at current list prices, is the first 737 MAX order for the Netherlands-headquartered lessor.
The airplanes will be powered by (CFM) (LEAP-1B) engines, in an engine order valued at $2.7 billion at USA list prices.
“This order complements our existing order book in the single-aisle category and is in line with our customer needs and our fleet strategy of leasing the most-in-demand and technologically advanced equipment,” AerCap (DEA) (CEO) Aengus Kelly said. “We see significant market appetite for this airplane type from our diverse customer base spanning approximately 90 countries around the world.”
Click below for photos:
CLJ-737 MAX 8 - 2015-06.jpg
1 737-2P6 (JT8D) (496-21356, /77 5Y-BPI), EX-(ARG), LST (AKN).
1 737-2Q3 (JT8D) (1565-24103, /88 UN-B3704), EX-(SWL), LST (KAZ).
1 737-2S3 (JT8D) (650-22279, /80 N279AD), EX-(INT), LST (PNM).
1 737-204 (JT8D) (652-22161, /80 N161DF), EX-(BRI)/(MDM).
1 737-247 (JT8D) (1071-23188, /84 UR-GAC), EX-(WAL), LST (UKR).
1 737-291 (JT8D) (909-22743, /82 VP-BBL), EX-(FRO), LST (LAN).
1 737-3U4 (CFM56-3) (761-22576, /81 N576DF), EX-(BRI), LST (PNM).
2 737-400 (CFM56-3).
100 ORDERS 737 MAX 8 (LEAP-1B):
15 MD-82 (JT8D-217A) (49192; 49211), LST (ALI).
AENGUS KELLY, CHIEF EXECUTIVE OFFICER (CEO), AERCAP (DEA)/(CLJ).
PHILIP SCRUGGS, PRESIDENT/(CCO), AERCAP (DEA)/(CLJ).
ERWIN DEN DIKKEN, (COO) AERCAP (DEA)/(CLJ).
KEITH HELMING, CHIEF FINANCIAL OFFICER (CFO) AERCAP (DEA)/(CLJ).
TOM TURLEY, CHIEF FINANCIAL OFFICER (CFO) (Tom@aergocapital.com).
JOCK SEALS, Assistant VP.
CHRISTO KOK, HEAD JOHANNESBURG OFFICE, SOUTH AFRICA, EX-SAFAIR (SFA) OPERATIONS CEO (2011-03).
KENNETH WIGMORE, HEAD EUROPE, MIDDLE EAST & AFRICA.