||AERCAP AVIATION SOLUTIONS
||+31 (20) 655 96 55
||+31 (20) 655 91 00
Click below for data links:
DEA-2010-05 GENESIS MERGER
DEA-2011-02-WORLD APL LEASING-A
DEA-2011-02-WORLD APL LEASING-B
DEA-2011-02-WORLD APL LEASING-C
DEA-2011-02-WORLD APL LEASING-D
DEA-2011-02-WORLD APL LEASING-E
DEA-2011-02-WORLD APL LEASING-F
DEA-2011-02-WORLD APL LEASING-G
FORMED IN 1995. JET AIRPLANE LEASING, FINANCING & ASSET MANAGEMENT COMPANY.
AVIOPORT BUILDING EVERT VAN DE BEEKSTRAAT 312
AMSTERDAM AIRPORT SCHIPHOL
AMSTERDAM, NL-1118CX, NETHERLANDS
The Kingdom of the Netherlands was established in 1581, it covers an area of 41,473 sq km, its population is 15.5 million, its capital city is Amsterdam, and its official language is Dutch.
AerCap (DEA) is an integrated global aviation company with a leading market position in airplane and engine leasing, trading and parts sales. (DEA) also provides airplane management services and performs airplane maintenance, repair and overhaul services and airplane disassemblies. (DEA) is headquartered in The Netherlands and has offices in Ireland, the USA, Singapore, China and the UK.
JUNE 1999: PARIS AIR SHOW - DEBIS AIRFINANCE (DEA) SELECTS (V2500) ENGINES FOR $240 MILLION INCLUDING 10 A319'S, 15 A320'S, & 5 A321'S (2003).
DECEMBER 1999: 10 ORDERS (JANUARY 2003) A319/A320/A321'S (CFM56-5B).
FEBRUARY 2000: 2 A300C-600RF'S (755; 758), LEASED TO CITYBIRD (CBD),
8 A320'S (558; 561; LEASED TO LACSA (LAC); 912; 916; LEASED TO TACA (TAC); 258 LEASED TO CROATIA (CRH); 3 A330-200'S (030; 037; 045; LEASED TO SABENA (SAB) (CF6-80E1); & 2 A340-300'S (036 LEASED TO SRI LANKAN (LNK); 016 VIRGIN ATLANTIC (VAA), PURCHASED FROM AIRBUS (EDS).
APRIL 2000: JOHN MCMAHON MANAGING DIRECTOR.
MAY 2000: MAKES BID FOR BOULLIOUN AVIATION SERVICES (BOU), 3RD LARGEST AIRPLANE LESSOR IN WORLD, BEING OFFERED FOR SALE BY PARENT DEUTSCH BANK.
(DEA) PORTFOLIO IS 101 AIRPLANES, OWNING ALL BUT 3: 4 737'S, 2 A300'S, 22 +30 A320'S, 9 A330'S, 2 A340'S, AND 62 FOKKERS.
JUNE 2000: EUROPEAN LEASING FIRM AERFI GROUP, BETTER KNOWN AS (GPA).
DAIMLER-CHRYSLER OWNS 45% OF AIRFINANCE, WITH THE REST OWNED BY GERMAN BANKS. TOGETHER, THE MERGED COMPANY WOULD LEASE & MANAGE >200 AIRPLANES, MAKING THEM 3RD LARGEST LEASING FIRM AFTER (GE) CAPITAL AVIATION SERVICES (GEF) AND (ILFC). IT COULD COMPETE BETTER WITH GATX (GAX), & FLIGHTLEASE (SWS), (CIT) (TCI) AND ANSETT WORLDWIDE (AWW).
1 A320 (V2500) (344), EX-CONSTELLATION (COT).
JULY 2000: 1 F 100 (11324), RETURNED FROM BRAATHENS MALMO (TSW).
SEPTEMBER 2000: DEBIS AIRFINANCE (DEA), A MEMBER OF THE DAIMLERCHRYSLER GROUP, IN FRIENDLY TAKEOVER FOR $750 MILLION OF (AFJ),
IRELAND'S AERFI GROUP TO BECOME WORLD'S 3RD LARGEST AIRPLANE LEASING COMPANY BEHIND (ILFC) AND (GE) CAPITAL AVIATION SERVICES (GEF).
INCREASES (DEA) PORTFOLIO TO $5 BILLION, WITH TOTAL 224 OWNED & MANAGED AIRPLANES, WITH +46 AIRLINES FOR TOTAL 79, IN 35 COUNTRIES LAST YEAR. AERFI ACQUIRED ITS SWEDISH COMPETITOR INDIGO (INZ). NOW INCLUDES 77 BOEING AIRPLANES (INCLUDING 20 EX-(MDC); 49 AIRBUS (EDS); 67 FOKKER; 1 DORNIER; & 28 ATR/DHC ON LEASE TO 80 AIRLINES IN 40 COUNTRIES.
(DEA) HAS ORDER FOR 32 AIRBUS AIRPLANES AT $1.5 BILLION.
COMBINED GROUP TO BE NAMED DEBIS AIRFINANCE, HQ IN AMSTERDAM WITH OFFICES THROUGHOUT EUROPE AND THE USA.
AUGUST 2001: (email@example.com) - SALES/LEASING.
July 2002: 3 F 100's leased to Pelita (11475; 11477), ex-Midway (MID) and 1 to Montenegro (MNO) for 39 months.
March 2003: Klaus Heinemann (CEO) replaces Frank Haspel who retired.
June 2003: 100 employees.
February 2004: See attached link to Leasing Survey 2004, which shows (DEA) ranked 6th of the top 40 airplane leasing companies with 64 turboprops, 39 regional jets, 126 narrow bodies and 15 wide bodies.
Changed one order A319 for an A320.
July 2004: In 2nd Quarter, delivered 14 airplanes to 9 airlines. Expanded its portfolio with selling 2 737-200's, and acquiring 3 A320's, 1 A321, and 2 F 50's.
April 2005: Daimler Chrysler (DCY) is to sell its 35% stake in Debis AirFinance (DEA) to Cerberus Capital Management. Its aerospace unit owns 10%.
(DEA) has a fleet of 141 airplanes and manages a further 108 under full-service contracts for 3rd party owners. It provides financial and corporate services for 164 airplanes.
October 2005: Renames as "AerCap Aviation Solutions" (formerly "Debis AirFinance" (DEA)) following its sale to USA-based Cerberus Capital Management. It was previously owned by Daimler Chrysler (DCY) and various German banks.
November 2005: Airbus (EDS) is finishing strong in Dubai after receiving a commitment for 70 A320s from AerCap (DEA), the Amsterdam-based leasing and asset management firm, formerly known as debis AirFinance. (DEA) signed a letter of intent (LOI in ordering 31 A320s in 1999 and the new deal will raise its (EDS) portfolio to >170 airplanes. "We are excited about building on the longstanding relationship between (EDS) and (DEA) with this new order. It will further strengthen our position as a leading provider of the most modern single-aisle airplanes to our global customer base," (CEO) Klaus Heinemann said.
The order lifted (EDS)'s Dubai Air Show haul to 157 firm orders and commitments worth approximately $14 billion, including the sale of 30 A320s to Kingfisher Airlines (KFH) and a combined 34 A350s to 3 customers.
February 2006: AerCap (DEA) established a 50/50 joint venture with LoadAir, a Kuwait-based aviation entity to acquire, manage and market 70 A320 family airplanes to which (DEA) committed at the Dubai Air Show. The new company, AerVenture, will be based in Ireland. It firmed the (DEA) Letter of Intent (LOI) with Airbus (EDS) in December. (DEA) (formerly debis AirFinance) will provide complete asset management services for the portfolio. LoadAir is the trading name for International Cargo Airlines Company, which was floated on the Kuwait stock exchange in 2005. This is its 1st major transaction, although it "aims to be active in several other areas of the aviation industry from cargo operations to freight handling facilities," according to a joint statement.
March 2006: Based on an "Airline Business" magazine survey of airplane leasing companies, AerCap (DEA) has a fleet of 245 airplanes valued at 3,069 million and is ranked 6th of the top 50 airplane leasing companies (see attached data).
(DEA) said it signed an agreement to acquire Miami-based AeroTurbine (AUB) for an undisclosed price. (AUB) specializes in aftermarket commercial airplane engine and parts sales and holds an (FAA)-approved Certified Repair Station license to support its engine leasing and trading activities. It was founded in 1997 by (CEO) Nick Finazzo and (COO) Robert Nichols, who will remain in their current positions, according to (DEA). "(AUB)'s expertise with engines and airframe parts will complement our airplane leasing and management expertise and will allow us to create additional value for our customers and shareholders," (DEA) (CEO) Klaus Heinemann said.
May 2006: AerCap Group (DEA) said it completed a $346 million credit facility with a consortium of banks led by Calyon. The facility was raised from $275 million owing to strong market demand. (DEA) will use the 5-year facility to finance a portion of the acquisition and planned expansion of its newly acquired subsidiary AeroTurbine (AUB).
Separately, (DEA) announced the completion of a $1 billion, 6-year warehouse credit facility with (UBS). It will use the facility "to finance airplane acquisitions to substantially expand its portfolio over the coming years."
August 2006: AerCap Group (DEA) named (GECAS) (GEF) (CFO) Keith Helming as its new (CFO). Helming succeeds Heinrich Loechteken, who will assume the new position of Chief Investment Officer.
September 2006: AerVenture, a joint venture between AerCap (DEA) and Kuwaiti cargo startup LoadAir, placed an order valued at $360 million for (CFM56-5B)s to power the 30 A319s/A320s ordered late last year.
November 2006: AerCap Holdings (DEA) submitted a filing to the USA Securities & Exchange Commission for a proposed USA initial public offering (IPO) of 26.1 million ordinary shares. It said the shares will be offered at $22 - $24 each. "The securities to be offered in the proposed (IPO) will include shares to be issued and sold by (DEA) as well as shares to be sold by shareholders of (DEA)," the company said, adding that the shares are expected to trade on the New York Stock Exchange under the symbol (AER). "(DEA) intends to use the net proceeds it receives from the offering, to repay a portion of its outstanding senior secured and junior subordinated term loans incurred in connection with its acquisition of AeroTurbine (AUB) in April 2006," the company said.
December 2006: AerCap (DEA) signed a firm contract with Airbus (EDS) for 20 A330-200s.
"The A330-200 is an excellent airplane that helps us to expand our business and respond to market needs in the passenger markets," (DEA) (CEO) Klaus Heinemann said. The company's relationship with (EDS) includes previous orders for a combined 102 A320 family airplanes.
May 2007: AerCap (DEA) Holdings named Willis Lease Finance, Senior VP Worldwide Sales & Marketing, Thomas MacAleavey to the new position of Chief Executive (CEO) Engine Leasing, effective June 1.
Component Control said AeroTurbine (AUB), a subsidiary of (DEA), selected its Quantum Control (ERP) software to manage its airplane and engine aftermarket parts sales, maintenance, repair and overhaul operations.
(DEA) signed a firm order with (EDS) for an additional +10 A330-200s valued at $1.6 billion, bringing to 30 the number of the type it has on order. "Since (DEA) ordered 20 new [A330-200s] in December last year, we have already lined up customers for 13 out of the 20 airplanes," (CEO) Klaus Heinemann said. "The order for an additional +10 airplanes will help us to further expand our portfolio in the attractive market for modern, smaller wide body airplanes."
September 2007: AerCap Holdings (DEA) took delivery of a new 737NG, the 7th of the type the lessor has acquired in the last 12 months.
October 2007: AerCap (DEA) Holdings announced that AerVenture, a joint venture with LoadAir and AI Fawares, will lease 6 new A320-200s to Aeroflot (ARO) for 10 years. The (CFM56)-powered airplanes will be delivered to (ARO) between July 2008 and March 2009. (ARO) Head of Fleet Planning & Aircraft Procurement, Sergei Koltovich said the carrier's new partnership with AerVenture "should develop into a truly long-term relationship."
(DEA) announced that subsidiary AeroTurbine (AUB) promoted Senior VP Materials, Michael King to the newly created position of President reporting to (AUB) (CEO) Nicolas Finazzo.
March 2008: AerCap Holdings (DEA) will lease 10 new A330-200s to Aeroflot (ARO) for 9 to 10-year periods with deliveries beginning in November and extending to April 2010. (DEA) has an additional 20 A330s on order with Airbus (EDS), but has not yet announced placement.
April 2008: AerCap Holdings (DEA) subsidiary, AeroTurbine (AUB) reached a 10-year deal with British Airways (BAB) for the purchase, sale and lease of components including wheels and brakes for 737, 757, 767, 777, and 747-400 airplanes. The contract calls for a 6 to 10-year leaseback in line with (BAB)'s fleet renewal plans, as well as strategic worldwide wheel and brake positioning to support daily flight operations and maintenance.
June 2008: (TUI) Travel (TUG) signed an agreement with AerCap Holdings (DEA) and Deucalion Aviation Funds for the sale and leaseback of 19 owned airplanes within the TUI Travel (TUG) fleet for $526 million. The airplanes will be acquired through a 50/50 joint venture between (DEA) and Deucalion and will be managed by (DEA), which will receive servicing fees. (TUG) will continue to operate the 11 737-800s, 6 757-200s and 2 767-300ERs on 1 to 7-year operating leases with TUIfly (HAP)/(HLX), Thomsonfly (TFY), TUIfly Nordic (TNS) and Jet4You (J4U). (TUG) will use the proceeds to reduce debt and said the deal had no impact on its discussions with Lufthansa (DLH) regarding a potential merger of Germanwings (RFG) and TUIfly (HAP)/(HLX), "on which we intend to update the market in due course."
July 2008: At the Farnborough Air Show, AerCap (DEA) stated it will be the launch customer for the A320/A321 converted freighter following signing of a firm contract with Airbus (EDS) Freighter Conversion (AFC) to convert 30 of its passenger A320s/A321s into cargo airplanes. The deal is valued at about $135 to $140 million. "The A320-A321P2Fs are setting new standards in the feeder freighter market," (DEA) (CEO) Klaus Heinemann said, citing 3 key reasons to make the commitment, including the urgent need to replace its current fleet in the smaller freighter segment and the life extension of the A320 of "about 10 years," owing to the conversion. (DEA) has identified 29 of the 30 A320s/A321s in its portfolio it will convert to freighters. They all have been operating for about 15 years, "which we see as an optimal age for the conversion," he noted. (AFC) was established in March 2007 as an (EADS) (EFW), Airbus (EDS), (UAC) and Irkut joint company, headquartered in Dresden.
November 2008: AerCap (DEA) Holdings has "suspended all future Capex other than existing contracted Capex with Airbus (EDS)" and is reducing headcount by around -15% as it seeks to adjust to the impact of the ongoing credit crunch and airline traffic downturn. The company also is "in active discussions" to sell minority stakes in parts of its portfolio. (CEO) Klaus Heinemann announced the moves during the 3rd-quarter webcast, in which (DEA) reported a +5.6% year-over-year rise in net income to +$51.3 million.
Lease revenue grew +23% to $167.9 million, despite the loss of -$6 million related to the failures of Zoom Airlines (ZOM) and Gemini Air Cargo (GMN), both of which leased airplanes from (DEA). Total revenue was down -10% to $301.9 million, reflecting a -35% reduction in revenue from airplane sales. Commenting on the lease market, Heinemann estimated that rentals for a recent model A320 have dropped around -10%, while for an older airplane such as the 767 or 737 Classic, the decline could be as much as -30%. (DEA) owned 156 airplanes as of September 30 and managed a further 54. It had 90 on order: 60 A320 family airplanes and 30 A330s.
In the 3rd quarter, (DEA) signed new lease agreements for 22 airplanes, delivered 11 airplanes and 10 engines under lease agreements, purchased 4 airplanes, 7 engines and 1 airframe, sold 10 airplanes and 2 engines, and broke up 8 engines and 1 airframe.
January 2009: AerCap Holdings (DEA) announced a facility agreement with Calyon SA and "other banks and financial institutions" outlining terms under which European export credit agencies (ECA) Coface (France), (ECGD) (UK) and Euler-Hermes (Germany) may guarantee up to $1.4 billion in financing. (DEA) said the figure "represents a significant portion" of the financing required for an A330 order scheduled for delivery in 2009 - 2012. According to (DEA), the loans are to be provided by a syndicate of banks led by Calyon acting as Global Arranger "and are subject to customary (ECA) requirements."
(DEA) said it signed new lease agreements for 14 airplanes during the 4th quarter of 2008. It also delivered 12 airplanes and 9 engines under lease agreements, purchased 11 airplanes and 6 engines, sold 3 airplanes and 5 engines and disassembled 2 airplanes and 7 engines. New lease agreements were with Air China (BEJ) (3 new A330s), Sichuan Airlines (SIC) (3 new A330s), Air One (ADH) (3 new A320s), Indonesia's Batavia Air (BTV) (3 737-400s), North American Airlines (NNA) (2 767-300) and AeroMexico (AMX) (2 767-300). As of December 31, (DEA)'s portfolio comprised 304 airplanes and 75 engines either owned, managed, on order, under contract or letter of intent.
SEE ATTACHED - - "DEA-NEWS-2009-01."
February 2009: Full year 2008 net income for AerCap Holdings was +$151.8 million, compared with +$188.5 million for 2007. Full year 2008 net income excluding non-cash charges relating to the mark-to-market of our interest rate caps and share-based compensation was +$197.8 million, down -6% vs +$210.6 million in 2007, which was mainly caused by the previously disclosed airline defaults, inventory impairments, lower gains from sales and lower other revenue. Total revenue for the full year 2008 was $1,256.3 million, up +7% vs 2007.
Aviation assets purchased and delivered in 2008 were $1.5 billion. In
addition to these completed purchases, at December 31, 2008 AerCap (DEA) had signed agreements for the purchase of 4 airplanes and letters of intent for the purchase of 2 airplanes.
4th quarter 2008 net loss was -$19.0 million, compared with net
income of +$45.1 million for the same period in 2007. 4th quarter
2008 net income excluding the impact of the mark-to-market of interest
rate caps and share-based compensation was +$18.7 million, compared
with +$57.0 million in 4th quarter 2007 on the same basis.
(DEA)'s (CFO) Keith Helming said, "We are pleased with our performance during 2008, particularly in light of the current financial crisis and related airline defaults. Notwithstanding adverse market conditions, we continue to deliver revenue growth and derive significant advantages from the current low interest rate environment as a result of our hedging strategy, which is reflected in our increased net spread."
AerCap Holdings subsidiary, AeroTurbine (AUB) will supply Aveos (formerly (ACTS) Air Canada Technical Services) with engine and airframe components under a 5-year lease agreement. The contract calls for acquisition and leasing of certain A320 and 737 rotables as well as additional inventory for Aveos to position at various locations worldwide. Under a separate 5-year deal, Aveos will provide (AUB) with Maintenance Repair & Overhaul (MRO) on (CFM56-2)s, (CFM56-3)s and (CFM56-5)s.
Dragon Aviation Leasing took delivery of the 1st of 13 A320s on order. The airplane, leased to Air France (AFA) is the Beijing-based lessor's 1st directly purchased Airbus (EDS) type. Dragon is a joint venture of China Aviation Supplies Holding Company, AerCap (DEA) and Calyon Airfinance.
March 2009: 2 prominent airplane leasing firms, Aircastle (CSL) and AerCap (DEA), each reported 4th quarter and full year 2008 net profits, ex-special items. They also discussed some important trends in the current airplane leasing market, which is slower but still active. On a positive note, 787 delays are boosting demand for A330s, the bias toward hoarding cash makes leasing rather than buying more attractive and finding homes for new deliveries or for planes unexpectedly returning from defaulting airlines isn’t terribly difficult, especially for new-generation models. On
the other hand, lease pricing is becoming more competitive, airplanes are becoming harder to value because of limited buying and selling activity and rates of airline defaults are rising.
(CSL) gave a specific example of how airplane lease rates are declining. 1 of its customers, Denmark’s Sterling (STR), was paying $300,000 a month for a 737-800 before it went bankrupt, and defaulted on its contract. (CSL) quickly found another airline to lease the plane but for only $230,000 a month. This may not be a rRepresentative example though. As (CSL) explained, (STR) went bust in October, just before the off-peak season when airlines are least likely to rent new capacity. As a result, rather than having the plane sit idle while waiting for the peak season, (CSL) accepted a lower rate.
AerCap (DEA), more generally, said it hasn’t seen much change in rental rates for new generation planes.
April 2009: AerCap (DEA) Holdings said it purchased 8 new A320s, 2 used 767s, 3 (CFM-56) engines and 1 (PW4060) during the quarter and delivered 13 planes and 8 engines under lease agreements. (CEO) Klaus Heinemann said that despite "1 of the worst economic environments for the aviation industry, most airlines have shown a remarkable resilience to these conditions." 8 of 9 airplanes repossessed last year are now with new operators. "Towards the end of the 1st quarter, we noticed a significant renewal of airline interest in contracting new capacity for 2010 and beyond. This trend has continued to date," Heinemann added. (DEA) signed new leases for 2 airplanes (1 A320 for XL Airways France and 1 737-800 for Garuda Indonesia (GIA)) and 8 (CFM-56) engines during the period. As of March 31 its portfolio comprised 295 airplanes and 75 engines.
June 2009: Virgin Atlantic Airways (VAA) and AerCap (DEA) announced a deal that will see 10 A330-300s join the fleet in 2011 to 2012 as (VAA) moves to fill the gap caused by the delayed introduction of its 15 787-9s, now scheduled to begin arriving in 2013. (VAA) ordered 6 of the A330s directly from Airbus (EDS) and signed a letter of intent (LOI) with (DEA) for a sale and leaseback transaction. (DEA) will lease the 4 remaining airplanes to (VAA) from its own portfolio. (VAA) will take delivery of 5 A330-300s in 2011 and 5 the following year. Lease terms on the airplanes will be 12 years. They will be (VAA)'s 1st twin-engine jets it currently operates A340s and 747-400s. The A330s will set up to 270 passengers across 3 classes, (EDS) said. No engine choice was announced. (DEA) said the 4 airplanes not purchased from (EDS) were the only remaining positions from its order for 30 placed in 2006 to 2007.
September 2009: AerCap Holdings N V (DEA) and Genesis Lease Limited announced that their Boards of Directors have approved a definitive agreement under which (DEA) and Genesis will merge in an all share-for-share transaction. Under the terms of the amalgamation agreement, Genesis shareholders will receive one (DEA) ordinary share for every Genesis common share they own.
Genesis is a global commercial airplane company that is headquartered in Shannon, Ireland. Genesis acquires and leases modern, operationally efficient passenger and cargo jet airplanes to a diverse group of airlines throughout the world.
Genesis earned $14.3 million in the 1st 6 months of 2009, down -24% from the year-ago period, on a +1% rise in revenue to $108.3 million. AerCap (DEA)'s net income in the period fell -28% to $86.6 million, while revenue declined -20% to $503.2 million.
Genesis will become a wholly-owned subsidiary of (DEA). (DEA)'s (CEO) Klaus Heinemann and (CFO) Keith Helming will lead the combined company, which will retain the name AerCap (DEA). 3 directors from Genesis will be nominated for election to the Board of Directors of (DEA) at an extraordinary general meeting of (DEA) shareholders to be called and held shortly after the consummation of the transaction.
Based on Genesis' balance sheet, the transaction has a value of $1.75 billion and, based on the closing stock price for (DEA) ordinary shares on Thursday, September 17, 2009, the share-for-share consideration has a value of $8.81 per Genesis ADS (each ADS representing one Genesis common share). The one-for-one exchange ratio represents an average premium to Genesis shareholders of 45% based on the daily closing prices of Genesis ADS and (DEA) ordinary shares during the 30 day trading period from July 31, 2009 to September 11, 2009. Upon closing of the transaction, Genesis shareholders are expected to own approximately 29% of the combined company. The transaction is subject to approval by Genesis shareholders, satisfaction of customary closing conditions and receipt of any necessary regulatory approvals. The transaction is expected to close in the 4th quarter of 2009.
(DEA)'s (CEO) Klaus Heinemann commented, "The merger of Genesis and (DEA) enhances the cash generation of the combined company in the current environment to pursue our growth objectives and capitalize on opportunities as the market recovers. Like (DEA), Genesis boasts the most modern, fuel-efficient and in-high-demand jets that are fully financed and on lease to a diverse operator base, including many new customers not currently in the (DEA) portfolio. The similarity of our respective airplane portfolios, combined with (DEA)'s substantial order book, make this an attractive transaction for all stakeholders.
Following this transaction, (DEA) will become the leading independent franchise within the global airplane leasing sector, with 116 airline customers in 50 countries and a lease portfolio currently valued at $6 billion, with another 83 airplanes on order or under purchase contract."
John McMahon Chairman & (CEO) of Genesis added, "Genesis' board and management are committed to enhancing shareholder value. This transaction, through the solid profitability and strong cash flows of Genesis, combined with (DEA)'s scale and order book, which is nearly all placed, provides our shareholders with a significant and immediate premium to recent stock trading levels and positions them to participate in enhanced earnings and business growth in the future."
As part of the agreement, (GE) Capital Aviation Services (GECAS) (GEF), which has acted as service for Genesis' portfolio, will continue to provide most asset management services for the Genesis fleet in the near term. (GEF) has, however, agreed with (DEA) a means to terminate early the (GEF) services at (DEA)'s option. Additionally, (DEA) has signed a letter of intent (LOI) to purchase 13 airplanes from (GEF). The purchase of 2 airplanes is expected to occur by the end of September 2009 and the purchase of the remaining airplanes is expected to take place after and is subject to the closing of the transaction.
Genesis has 55 airplanes under management, most of which are 737s or A320s. As of June 30, AerCap (DEA) owned 166 airplanes and managed a further 55. Most were modern narrow bodies with a smattering of older types such as MD-80s and some wide bodies. It had orders for 38 A320 family airplanes and 27 A330s.
The combined company will have a total fleet of 358 commercial airplanes and 83 engines that are either owned, on order, under contract or letter of intent, or managed. The average age of its owned airplane fleet is 6.6 years.
The International Bureau of Aviation (IBA) said that Royal Bank of Scotland (RBS) reportedly is considering disposing of its $8 billion airplane leasing business, with Goldman Sachs being appointed as the sole adviser. According to the (IBA), RBS Aviation Capital (CGP) is the world's 4th-largest airplane lessor.
November 2009: AerCap Holdings (DEA) and Aircastle Ltd (CSL), 2 mid-sized operating lessors, each reported solid 3rd-quarter financial results and cited positive signals pointing toward a market recovery.
Aircastle (CSL), headquartered in Stamford, Connecticut, posted a +14.2% rise in net income to +$33.5 million from +$23.6 million in the year-ago period. (CEO) Ron Wainshal said, "Operating performance during the 3rd quarter was excellent, with utilization at almost 100% and with unrestricted cash building to $132 million at September 30." Revenue rose +14.7% to $165.7 million as higher maintenance and lease termination revenue offset a reduction in lease rental revenue and higher lease incentive amortization.
(DEA), meanwhile, netted +$35.5 million for the period, down -31% from +$51.3 million last year but considered it a strong result in view of the current market dislocation. The slide was attributed to falling maintenance revenue and income from asset sales in the current period. Total revenue declined -29.6% to $212.5 million, primarily driven by lower sales, but the company noted that "basic lease rents" rose +7% to $142.4 million, while interest expense excluding the mark-to-market of interest rate caps lowered by -30% and "net spread," the difference between basic rents and adjusted interest expense, rose +23%.
In a webcast to discuss the results, (CEO) Klaus Heinemann said, "We're delighted to report that our core leasing business, measured by our net spread, continues to grow strongly in a climate that remains extremely challenging." Commenting on the state of the market, he said that "early signs of a market recovery we saw in March [have] continued. There has been a recovery among our emerging market clients as well as among some of the low-cost carriers." He added that (DEA) expects the winter season "to be challenging for airlines, but it is encouraging to see that so far, most remain able to fulfill their contractual obligations."
Heinemann said the company expects to complete its previously announced share-for-share merger with Genesis Lease early next year.
At the end of the third quarter, (DEA) owned 171 airplanes and managed 53. It had 67 on order, a mix of Airbus (EDS) narrow bodies and A330s.
During the Aircastle (CSL) results webcast, Wainshal said the lessor is seeing "positive signals both from industry data and from our customers. For modern narrow body airplanes, particularly 737-800s and A320s, we believe lease rentals may have bottomed out and started increasing," but demand for older-generation airplanes continues to be "soft," he added.
Aircastle (CSL)'s fleet numbered 128 airplanes on September 30. "We see exciting growth opportunities in the market and we've started pursuing them actively. With so many of the leading airplane lessors on the sideline or worse, we believe we are entering an incredibly attractive investment climate," Wainshal said.
AerCap (DEA) said it signed a series of agreements with the China Development Bank covering funding for $86 million of pre-delivery payments and a $272 million "long-term funding facility" covering 4 new A330s with deliveries scheduled in 2010 through 2011. The airplanes are part of AerCap (DEA)'s order for 30 A330s placed in 2006 TO 2007 with deliveries scheduled through 2012.
December 2009: AerCap (DEA) signed 2 debt facility agreements that will provide $127 million in funding, the lessor announced. The 1st, worth $67 million, was inked with Norddeutsche Landesbank Girozentrale for 2 existing A330s on long-term leases. The 2nd, worth $60 million, was signed with Natixis Transport Finance to finance AerCap (DEA) investments.
February 2010: AerCap Holdings reported net income of +$165.2 million for 2009, up +8.8% from +$151.8 million in 2008. "We're delighted to report that 2009 is truly behind us," Klaus Heinemann (CEO) of (DEA), told analysts during a conference call. He described it as "an extremely challenging year for the aviation and financial services industry," but noted that AerCap (DEA) did not need to repossess any airplanes, "which came as a surprise to us." Total revenues declined -21% to $1.0 billion on a -47% drop in sales revenue to $324.8 million. Basic lease rents, however, rose +12% to $581.9 million. Net spread, which is the difference between basic lease rents and interest expense (excluding the impact of mark-to-market interest rate caps), climbed +30% to $466 million.
(DEA) also noted that it placed all of its remaining airplane order book except for 4 airplanes that don't deliver until 2013 and are a little early to be placed, according to Heinemann. "Frankly, if the performance during the worst downturn since the Second World War looks like our financial performance in 2009 imagine what (DEA) is capable of in an improving market environment," he said. For the 4th quarter ended December 31, (DEA) reported net income of +$43.2 million compared to a loss of -$19 million in the 2008 period. Revenue fell -12% to $287.6 million on lower airplane sales, while basic lease rents rose +16% to $156 million.
March 2010: AerCap Holdings (DEA) and Genesis Lease announced completion of their $1.76 billion merger. Genesis shareholders will receive 1 AerCap (DEA) ordinary share for each Genesis share. (DEA) said it now is the world's largest independent airplane leasing company with assets of some $8 billion and a portfolio of 345 commercial airplanes and 92 engines. (DEA) (CEO) Klaus Heinemann and (CFO) Keith Helming will lead the enlarged company, in which Genesis shareholders now own approximately 29%. SEE ATTACHED "DEA-2010-05 GENESIS MERGER."
April 2010: AerCap Holdings (DEA) said in the 1st quarter it purchased 2 new A319s, 8 new A320s, 1 new A321, 3 new A330s, 4 used A320s, 2 used 737s, 2 (CFM-56)s, 2 (JT8D)s and 1 (CF6) and delivered 12 airplanes and 12 engines under lease agreements. "In addition to continuously growing airline traffic volumes and yields, we are now also observing a material improvement of airplane trading activities," (CEO) Klaus Heinemann said. "This is particularly true for 0-to-5-year-old narrow bodies and midsized wide bodies." The lessor signed new leases for 4 airplanes (2 A320s for Hainan Airlines (HNA), 1 A320 for Strategic Airlines (STC) and 1 A319 for Adria Airways (ADR)) and 12 engines (10 (CFM-56)s and 2 (CF6)s) during the period. As of March 31 its portfolio comprised 338 airplanes and 88 engines, numbers that include the 54 airplanes it added through its merger with Genesis Lease in March.
May 2010: AerCap Holdings (DEA) reported net income of +$34.4 million for the 1st quarter ended March 31, up +14.8% compared to income of +$30 million in the year-ago period. Excluding the impact of mark-to-market interest rate caps, net income jumped +48.2% to $46.7 million from $31.5 million last year. During the quarter, (DEA) completed its acquisition of Genesis Lease in an all-stock transaction.
Total revenue rose +75.6% to $364 million, which AerCap (DEA) said was mainly owing to higher sales revenue from the disposal of 5 airplanes, 3 engines and a parts inventory from its portfolio. Additionally, basic lease rents rose +17% year-over-year to $165.8 million. Net spread, or the difference between basic lease rents and interest expense, grew +18% to $133 million, excluding the impact of mark-to-market interest rate caps.
AerCap Holdings (DEA) subsidiary AeroTurbine (AUB) reached a 3-year management agreement with Airinmar to partner with the repair vendor as an extension to its supply chain solutions. The agreement covers Information Technology (IT) systems integration, visibility of the supply chain, vendor performance management, warranty management, reliability and value engineering. AeroTurbine (AUB) retains final vendor selection responsibility.
Just days after announcing its operations, leasing start-up Avolon says it has a deal with AerCap (DEA) to buy 6 A320s and form a joint venture to manage other assets. The new entity, in which both companies will be equal partners, starts out with the acquisition of 3 A330-200s. The airplanes previously belonged to (DEA) outright and are with Aeroflot (ARO) on long-term lease.
(DEA) will continue to manage the lease. Of the 6 A320s, Avolon is buying, 2 were delivered to (DEA) in 2008 and 4 are coming off the Airbus line this year. The latter were ordered by AerVenture, comprising (DEA) and Waha Capital of Abu Dhabi. All 6 A320s have leasing commitments from airlines already attached to them. The deals cover some of the 26 airplanes Avolon says it has already lined up. The remaining 17 are A320s and 737s. Avolon says, “A number of other transactions are at an advanced stage of discussions with airlines globally.“
Avolon (CEO) Domhnal Slattery says, “Our primary focus will be on A320 and 737NG family airplanes but we retain the capability to invest in long-haul airplanes which meet our risk and return criteria.”
AerCap (DEA) (CEO) Klaus Heinemann notes that “investor demand for new airplanes has significantly increased over the last few months, especially when linked to long-term leases with prime airlines. This market environment has provided attractive opportunities for us to sell airplanes from our young, fuel-efficient portfolio and from our order positions to achieve our diversification objectives and
further optimize our portfolio.”
July 2010: AerCap Holdings said it purchased 19 airplanes and 2 engines in the 2nd quarter of 2010. AerCap (DEA) also delivered 18 airplanes and 11 engines under lease agreements, signed new lease agreements for 5 airplanes, sold 5 airplanes and 5 engines and disassembled 9 airplanes and 8 engines. New lease agreements were with Wizz Air (WZZ) (3 new A320s), (MNG) Airlines (MHK) (1 A300) and Air Company Yakutia (SYL) (1 737-700). As of June 30, AerCap (DEA)’s portfolio comprised 329 airplanes and 90 engines either owned, on order, under contract or letter of intent (LOI), or managed.
August 2010: Operating lessor AerCap Holdings (DEA) reported net income of +$48.9 million for the 2nd quarter ended June 30, down -13.6% compared to income of +$56.6 million in the year-ago period. Excluding the impact of mark-to-market interest rate caps and share-based compensation, however, net income jumped +52.4% to $59.6 million from $39.1 million last year.
Total revenue climbed +101.8% to $594.7 million, which (CEO) Klaus Heinemann said was mainly owing to the inclusion of Genesis Leasing, which was acquired at the end of the 1st quarter, "and the deliveries of forward order airplanes." Basic lease rents climbed +62%. Net spread, or the difference between basic lease rents and interest expense, grew +50% to $169 million, excluding the impact of mark-to-market interest rate caps.
Discussing the performance during the company's 2nd-quarter webcast, Heinemann said "AerCap (DEA) has continued to deliver asset, revenue and net margin growth quarter after quarter." He also said that, "We believe there is now clear evidence of a sustained cyclical upturn in the [airline] industry" with "no signs that the trend is reversing or slowing down." He noted that (DEA) has 4 recent vintage A319s with bankrupt Mexicana Airlines (CMA) and 1 very old A320 destined to be parted out. While declining to comment on the potential financial impact to AerCap (DEA) of the (CMA) bankruptcy, he noted that the airplanes represent only around 2% of the lessor's portfolio.
Joining the 2nd quarter (Q2) profit parade were fellow lessors "Fly Leasing," newly renamed from (B&B) Air (BBB) and before that Babcock & Brown, and AerCap (DEA), the largest lessor not owned by a giant parent company like (AIG), General Electric (GEC) or Pacific Life. Both expressed optimism about industry conditions, with AerCap (DEA) viewing 2011 and 2012 as crucial years in the up cycle (and years during which new rivals like (ALC) and Avolon won’t yet have their newly ordered planes). Both are also encouraged by new capital entering the leasing sector and rising rental rates for 737s and (to a lesser extent, according to (BBB)) — A320s (a lesser
extent for those with (IAE) engines, anyway, said AerCap (DEA)). For the record, Fly (BBB) has 1 plane placed with Mexicana (CMA), and AerCap (DEA) has 5.
October 2010: AerCap Holdings (DEA) reached an agreement to sell a 20% stake in itself to Abu Dhabi-based, (Waha) Capital, a diversified investment holding company, for approximately $380 million. Under terms of the deal, (Waha) is acquiring some 29.8 million new shares in (DEA) in exchange for $105 million in cash plus (Waha)'s 50% interest in AerVenture; and a 40% interest in (Waha)'s airplane portfolio, which consists of 4 A330s, 2 A321s, an A320, 2 777s, 2 737-700s and 5 CRJs. Under terms of the deal, (Waha), whose major shareholder is the Mubadala Development Company, is entitled to 2 seats on the AerCap (DEA) board.
AerVenture was established by AerCap (DEA) in 2006 with a focus on the A320 and has a fleet of 47 A320 family airplanes with orders for a further 7. (Waha) became a 50% shareholder in June 2009.
In an investor webcast, (Waha) (CEO) Salem Rashid Al Noaimi said, "(Waha) Capital has already realized significant value from its relationship with AerCap (DEA) and we believe that this further evolution of the partnership will help us to deliver on several strategic objectives for (Waha) Capital and for Abu Dhabi's broader aerospace industry."
November 2010: AerCap (DEA) Holdings earned +$51.9 million in the 3rd quarter ended September 30, up +46.2% over income of +$35.5 million in the year-earlier period. (DEA)'s net income excluding the impact of mark-to-market interest rate caps and share-based compensation climbed +56% to +$61.1 million. Revenues during the period soared +125% to $478.1 million, primarily owing to an increase in sales revenue and basic lease rents "driven by the additional airplanes acquired" in the merger with Genesis Leasing and the deliveries of forward order airplanes.
"The end of the 3rd quarter 2010 marks the completion of the largest expansion program in AerCap (DEA)'s history. Lease assets increased by +67% to $7.97 billion compared to the end of the same quarter last year," (CEO) Klaus Heinemann stated. Net spread, the difference between basic lease rentals and interest expense rose +50% to $171.8 million in the period. For the 9 months ended September 30, (DEA) earned +$135.1 million, up +10.8% compared to income of +$122 million in the year-ago period. The airplane portfolio at the end of September numbered 324 airplanes and 83 engines that were either owned, on order, under contract or Letter of Intent (LOI), or managed. This includes airplanes that (DEA) added through the acquisition of Genesis that are still managed by (GECAS). The in-service fleet at September 30 included 265 owned airplanes and 43 managed airplanes.
AerCap (DEA) Holdings announced it signed a Letter of Intent (LOI) with Boeing (TBC) for the purchase of “up to 15 737-800 airplanes, consisting of 10 firm airplanes and 5 purchase rights.”
AerCap (DEA) (CEO) Klaus Heinemann said that while (DEA)'s portfolio of lease assets already contains a large number of (TBC) airplanes, this is the 1st time the operating lessor will buy directly from the manufacturer. “The 737-800, with its recently announced performance upgrade, its new cabin interior and the superb on wing performance of its (CFM) engines makes it a formidable competitor to any re-engine alternative," he said.
European cargo operator, West Atlantic will become the launch operator for the A320-P2Fs by taking the initial 3 airplanes in 2012 after conversion to freighter by Airbus Freighter Conversions (AFC).
As of September, AerCap (DEA)’s total fleet of 327 owned, managed and on-order airplanes included 215 Airbus (DEA) airplanes.
January 2011: AerCap Holdings (DEA) said it signed 13 new airplane lease agreements and delivered 8 airplanes in the 2010 4th quarter. Lease agreements inked during the period include 3 A319s for Frontier Airlines (FRO); 2 A320s for Brussels Airlines (DAT)/(EBA); an A320 for Donbassaero (UDC); an A320 and an A319 for (LAN) Airlines; an A320 for Batavia (BTV); 1 A320 for Hello (HLO); an A330 for Hainan Airlines (HNA); 757-200 for Delta Air Lines (DAL); a 737-400 for Vision Airlines (VIS); a 737-800 for Orenair (ORB); and a 737-400 for Nok Air (NKA).
(DEA) entered into 18 engine lease agreements in the 4th quarter and delivered the engines to the lessees in the same period. 13 of the leased engines were (CFM56)s, 2 were (PW4000)s, 2 were (V2500)s, and 1 was a (CF6). It expanded its engine pool with the acquisition of 9 (CFM-56)s and signed a Letter of Intent (LOI) for the acquisition of 1 (CFM-56).
AerCap Holdings (DEA) subsidiary AeroTurbine (AUB) reached an agreement to amend its credit facility, increasing total commitments available from $328 million to $425 million and allowing for additional newer-generation airplanes and engine types as eligible collateral under the facility. The credit facility amendment was led by Credit Agricole Corporate and Investment Bank.
February 2011: AerCap Holdings (DEA) earned +$207.6 million in 2010, up +25.7% over income of +$165.2 million in 2009. (DEA)'s net income, excluding the impact of mark-to-market interest rate caps and share-based compensation, was +$223.9 million, an increase of +49.1% compared to +$150.2 million in 2009.
Total revenue rose +83% to $1.83 billion, "resulting primarily from sales revenue and an increase in basic lease rents driven by the additional airplanes" acquired in the merger with Genesis Leasing and new airplane deliveries. 4th-quarter income totaled +$72.4 million, up +67.6% from +$43.2 million in the year-ago period.
(CFO) Keith Helming said: “2010 represents an outstanding year for AerCap (DEA) marked by several noteworthy financial achievements. (DEA) had a +83% rise in total revenue compared to 2009 driven by strong sales. Our net spread and net income rose by +43% and +26%, respectively, for the full-year 2010, both representing historic highs for the company."
July 2011: AerCap Holdings (DEA) had a busy 2nd quarter in which it signed new lease agreements for 16 airplanes, delivered 7, purchased 1 A330 and 1 A320, and sold 1 A321 and 1 737-400. It also inked contracts for the sale of another 4 airplanes from its owned portfolio (2 A320s, 1 737-300, 1 757-200), and 4 airplanes from its managed portfolio (1 737-400, 3 737-500s).
The independent lessor reached new airplanes lease agreements during the June quarter with Virgin America (VUS) for 4 new A320s, Garuda (GIA) for 3 A320s, Interjet (AAE) for 3 A320s, Amsterdam Airlines (AMZ) for 1 A320, Aircompany Tatarstan (TAK) for 2 A319s, Avianca (AVI) for 1 A319 and Bangkok Airways (PGB) for 2 A319s.
During the quarter, it delivered 1 new A330 (VUS), 1 new A320 (Hainan Airlines (HNA)), 1 A320 (Amsterdam Airlines (AMZ)), 2 A320s (Interjet (AAE), 1 A320 (Brussels Airlines (DAT)/(EBA)) and 1 A319 (Aircompany Tatarstan (TAK)).
In the engine segment, it delivered 11 engines under lease agreements, purchased 8, sold 5 and disassembled 3. The 11 new engine lease agreements comprised 9 (CFM56)s, 1 (CF34) and 1 (V2500-A1), all of which have been delivered, it said. It sold 4 (CMF-56) engines and 1 (CF-6) engine from its owned engine pool.
According to AerCap (DEA), as of June 30, its portfolio comprised 335 airplanes and 95 engines that were either owned, on order, under contract or (LOI), or managed.
AerCap Holdings (DEA) entered into a purchase-leaseback transaction with American Airlines (AAL) to finance up to 35 737-800s, including 29 firm deliveries (26 of which were previously ordered) plus 3 new orders. The deal also covers 6 optional 737-800s, which, if exercised by (AAL), would be delivered in 2013 to 2014.
(AAL)'s updated delivery schedule will now see 15 737-800s delivered this year, 28 in 2012 and 14 in 2013.
August 2011: International Lease Finance Corporation (ILF) has agreed to acquire AerCap Holdings (DEA) subsidiary, AeroTurbine (AUB) for $228 million. (ILFC) said the acquisition will “provide synergies and allow (ILFC) to realize more value from its fleet portfolio,” as well as “maximize the value in the remaining life and ultimate disposition of airplanes and provide a tool to optimize future airplane portfolio and operational acquisitions.” Closing is expected in the coming months.
Miami-based AeroTurbine (AUB), acquired by AerCap (DEA) in 2006, focuses on engine leasing and trading, airframe and engine disassembly, aviation supply chain solutions, part sales and Maintenance Repair & Overhaul (MRO) services and offers access to a large pool of certified airplane engines, parts, and supply chain solutions.
Previous to the acquisition, (ILFC) sought to sell airplanes on lease prior to their end-of-life phase, pursing part-out options on “only a small number of airplanes.” Now the acquisition “offers a new compelling strategic solution to maximize value across the complete life cycle of an airplane,” said (ILFC) (CEO) Henri Courpron.
October 2011: AerCap Holdings (DEA) said it has signed a $400 million, 10-year credit facility to finance the purchase and leaseback of 12 737-800s to American Airlines (AAL).
The airplanes are part of (DEA)'s previously announced sale/leaseback deal with (AAL) covering 35 737-800s.
July 2012: AerCap Holdings (DEA) and AerDragon have agreed to acquire 5 new A330-300s for lease to Singapore Airlines (SIA).
“The A330-300s will deliver over the next 36 months starting in 2013,” AerCap VP Corporate Communications, Frauke Oberdieck said. AerCap (DEA) will lease 4 of the airplanes; AerDragon, its Chinese joint venture (JV), will lease the 5th.
According to an AerCap (DEA) statement, the transaction expands its total relationship with (SIA) to 7 A330s and further strengthens its presence in the fast-growing Asia-Pacific region.
October 2012: AirFrance Industries (AFI) (KLM) (E&M) won an AerCap (DEA) contract for cabin modifications and an overhaul on one A321 airplane. It will conduct a general 6-year check as well as a "C4" heavy maintenance check, will paint new livery, will overhaul the control system circuits and on-board computers and will change configuration of the economy (Y) class from 199 seats to 220.
May 2013: AerCap Holdings (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 “9 new A350-900s, 4 new 787-9s, and 2 new 787-8s from (LATAM)’s order backlog, and 10 A330-200s with an average age of 4 years. The appraised value of the 25 airplanes is approximately $3 billion.”
AerCap (DEA) said it will purchase the airplanes from (LATAM) and immediately lease them back to (LATAM). (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 2nd quarter of 2014. According to (DEA), the newly combined company would have a fleet of >1,300 airplanes consisting of A320, A330 and 737NG plus 777 family airplanes.
(DEA) 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)’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) will retain its name for the combined company, once the transaction is competed and (ILFC) will become a wholly owned subsidiary of AerCap (DEA). "(DEA)'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 (DEA) will now have the most attractive order book in the industry," said (DEA) (CEO) Aengus Kelly.
May 2014: News Item A-1: Netherlands-based AerCap Holdings (DEA) has completed the acquisition of USA lessor, International Lease Finance Corporation (ILFC) (ILF).
AerCap (DEA) 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 (DEA) 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 4 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.
News Item A-2: China Southern Airlines (GUN) the largest operator in both Asia and the People's Republic of China, has signed a purchase agreement for 80 A320 family airplanes, comprising 30 A320ceos and 50 A320neos. The current list value is $7.3 billion. According to Airbus (EDS), the airplanes are slated for delivery from 2016 to 2020.
(GUN) will be leasing 24 Airbus A320neo Family airplanes from AerCap Holdings (DEA). The airplanes are due for delivery between 2016 and 2019 and will be powered by Pratt & Whitney (PRW) (PW1100G-JM) engines. AeroTurbine (AUB), (DEA)'s after-market subsidiary, has also agreed to purchase four older airplanes back from (GUN). These will be disassembled and parted-out.
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 >$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 (DEA), 1 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.
January 2015: Boeing (TBC)’s January deliveries included 4 airplanes to Dutch lessor, AerCap (DEA) (3 737-800s and a 787-8 Dreamliner).
May 2015: Guernsey-based lessor, DP Aircraft I has confirmed plans to acquire a 2 Boeing 787-8s that are currently owned by AerCap (DEA) and leased to Thai Airways (TII).
DP Aircraft I was created in 2013 to invest, lease and trade airplanes. It has a portfolio of 2 Rolls-Royce (RRC) powered 787s, carrying serial numbers (35304 and 35305), which are on long-term lease with Norwegian (NWG).
Last December, DP Aircraft I outlined plans to double its fleet by acquiring the 2 airplanes. At the time, it said the airplanes would be leased to a 3rd-party national airline on a 12-year term.
The acquisition was approved by shareholders during an extraordinary general meeting on May 18. The 2 Boeing 787s, (serial numbers 36110 and 35320), were delivered to Thai Airways (TII) in October and December 2014. The purchase will be funded by a $106.8 million share placement and a $156.4 million loan.
June 2015: AerCap Holdings (DEA) ordered 100 Boeing 737 MAX 8s at the Paris Air Show. The order, valued at $10.7 billion at current list prices, is the 1st 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.”
July 2015: AerCap Holdings (DEA) signed lease agreements for 103 airplanes in the 2nd quarter, up from 64 in the year-ago quarter.
August 2015: (PIA) - Pakistan International Airlines will dry lease 3 777-200ERs from Dutch firm AerCap (DEA) following a tender floated in May of this year. According to evaluation results, the airplanes are Vietnam Airlines ((IATA) Code: VN, based at Hanoi) (VIE) airframes (32717, 32716, and 28688), all of which will be used to replace (PIA)'s outgoing 747-300 fleet.
January 2016: AerCap Holdings signed lease agreements in 2015 for 276 aircraft (vs 249 in 2014), purchased 46 (vs 33), and sold 83 others (vs 83), ending year with portfolio of about 1,700 aircraft (vs 1,660). AerCap (DEA) also executed its 1st Boeing 737 MAX placement with deal for 10 with Travel Service (TVL).
May 2016: Airplane leasing company AerCap (DEA) would be interested in a larger version of Boeing's 737 MAX 9, if the weight, size and range were right, (DEA)'s (CEO) said. "We may possibly (be interested) but only if it makes money for the shareholders of AerCap (DEA)," (CEO) Aengus Kelly said in an interview, confirming that his company had discussed the plane with Boeing (TBC).
"We think the MAX 9 could definitely do with some enhancements," he said. "I think Boeing have recognized that, and I think they will address it." Numerous design factors are in play, including a longer fuselage, weight, range, seating and engines, he said. The 737 MAX 9 which seats 178 passengers in a 2-class configuration, has been outsold by the Airbus A321neo, which will seat 206 passengers in 2 classes.
Boeing (TBC) also is considering enlarging its smallest 737, the MAX 7, providing more seating. Airlines have expressed interest in that plane as well.
Delta Air Lines (DAL) said last week it was interested in larger and longer-range MAX airplane and noted that it was specifically interested in those changes in a MAX 9.
Aengus Kelly said he would prefer the larger version of the MAX 9 to be done 1st, but Boeing (TBC) seems poised to move 1st on the smaller plane, dubbed the 737 MAX 7X. "I think that will be a more niche airplane," Kelly said of the 7X. "The more important 1 for the market is the larger 1." "The heart of the market is still the 737 MAX 8 and the A320," he said, noting that the MAX 8 is an "excellent airplane" that has sold well. But, he added, "a bigger portion of the market is going to the bigger airplane, which would be in the A321 and MAX 9 category."
July 2016: Ireland-based lessor AerCap (DEA) has experienced strong demand as low fuel prices have boosted airlines into record-making profits, creating a need for additional aircraft, according to AerCap (DEA) President & (CCO) Philip Scruggs. Scruggs said, “We have >430 aircraft on backlog. With 1,230 aircraft managed and owned in our fleet, over the next 4 years we [will] have plenty of new aircraft on delivery, which will peak in 2018 and 2019.”
October 2016: News Item A-1: Aercap (DEA) signed lease agreements for 96 aircraft in (3Q) 2016 vs 46 in (3Q) 2015; it purchased 7 aircraft (A320neo; 3 A350s; and 3 787s) vs 7 and sold 40 vs 17. It has owned/managed/committed fleet of 1,607 aircraft vs 1,730 a year ago.
News Item A-2: Turkish regional Borajet Airlines (BOJ) is to take 3 Embraer (EMB) E190-E2s and 2 E195-E2s on long-term lease from Irish lessor AerCap (DEA).
AerCap (DEA) is the launch lessor for the E2, with 50 E190-E2s and E195-E2s on order. The 1st E2 will be delivered to Borajet (BOJ) in 2018.
May 2017: Ireland-based lessor AerCap (DEA) reported net income of +$261.2 million for (1Q) 2017, up +17% compared with +$223.1 million for the same period in 2016.
The improved figure was achieved on revenue of $1.24 billion, down -6% compared with $1.32 billion in the year-ago quarter. Diluted earnings per share was $1.48, compared with $1.13 for 1Q 2016. (DEA) said the increase in net income was driven “primarily by higher gain on sale of assets and lower maintenance rights expense, partially offset by lower income as a result of the sale of mid-life and older aircraft, which reduced average lease assets.
“Diluted earnings per share was also favorably impacted by the repurchase of 31.6 million shares for $1.3 billion during the full year 2016 and the 1st quarter of 2017.” The company’s board authorized a new $300 million share repurchase program, which will run through Sept. 30, 2017.
AerCap (DEA) executed 105 aircraft transactions in (1Q) 2017, including 22 wide body transactions. Average age of the owned fleet was 7.3 years, with 6.5 years average remaining lease term.
The company’s stocks were also upgraded to investment grade rating by Moody’s. “(DEA) delivered another quarter of consistent results,” (CEO) Aengus Kelly said. “The strong operational performance of the business is evidenced in 105 aircraft transactions executed during the quarter, as well as the 99.7% fleet utilization level achieved. We also received our 3rd investment grade rating from Moody’s and completed $7.2 billion of financing transactions, further strengthening (DEA)’s balance sheet,” he said.
June 2017: AerCap becoming the latest customer to commit to the 737 MAX 10 by converting 15 MAX 8 orders to MAX 10s.
July 2017: Netherlands-based lessor AerCap (DEA) delivered its 1st Airbus A321neo on lease to SriLankan Airlines (LNK).
October 2017: AerCap (DEA) signed lease deals for 50 airplanes in (3Q) 2017 vs 96 in (3Q) 2016; it purchased 11 airplanes vs 7 and sold 28 vs 40. It has owned/managed/committed fleet of 1,506 airplanes vs 1,607 a year ago.
March 2018: "(ATW)'s Leasing Company of the Year: AerCap" by ATWOnline
March 26, 2018.
AerCap (DEA) has a legacy that spans >40 years and began with the 2 Founders of aircraft leasing, (GPA) and (ILFC). (DEA)’s high quality and well diversified portfolio of aircraft, 1 of the largest in the world, provides a global network of airline customers with comprehensive fleet solutions. (DEA) is funded by a robust, long-term capital structure that generates strong profitability and cash flow.
July 2018: "AerCap (2Q) Net Profit Down -10% on Aircraft Sales" by
Sean Broderick (firstname.lastname@example.org), July 30, 2018.
Netherlands-based lessor AerCap (DEA) posted a 2nd-quarter net profit of +$254.2 million, down -10% year-over-year. The decline stemmed in part from lower net gains on aircraft sales. (DEA) sold 30 airplanes last quarter, with an average age of 13 years, while taking delivery of 20 new airplanes.
Demand overall remains strong, pointing to (IATA)’s full-year outlook of +7% traffic growth as a sign of the market’s condition. “At a macro level, we continue to see a broadly healthy environment for our airline customers, notwithstanding the rise in oil prices,” Kelly (DEA) (CEO) said. “While the rising fuel prices over the past year has clearly had some impact on airlines profitability, it has not risen to a level where we believe it will cause major problems for the airlines, as it reflects a global economy that continues to do well.”
Brent Crude oil prices, which were at $105/barrel 4 years ago and just under $50/barrel 3 years ago, have been between $70 to $80 for the last 4 months.
(DEA) sees no evidence that Chinese carriers are contemplating shifts away from Boeing (TBC) airplanes to proactively insulate themselves from tariffs that could result from the escalating trade discord between China and the USA.
“We see absolutely no evidence whatsoever of any airline contemplating a move from Boeing to Airbus because of this trade dispute,” (DEA) (CEO) Aengus Kelly told investors on the company’s 2nd-quarter earnings call July 30.
AerCap (DEA) is in the midst of several campaigns with Chinese customers, and Kelly acknowledges they are “more focused on Airbus.” This, he explains, stems from each customer’s needs, not a trade-driven strategy. “At the moment, most of the campaigns are around Airbus equipment, but they are Airbus carriers,” he said.
The USA and China have been trading tariff threats for much of 2018. Large commercial aircraft have been largely spared, with the threat of a 25% tariff on Boeing 737NGs being the notable exception. China, Boeing’s largest export market, is using airplane empty weights to set tariff thresholds, and so far, heavier airplanes (including the 737 MAX family) have not been targeted.
Meanwhile, (DEA) is prepared to deliver its 1st Airbus A350s into China following the Civil Aviation Administration of China (CAAC)’s validation of the model’s type certificate. Kelly said as many as 6 (DEA) A350s could go to Chinese customers this year.
Kelly said demand for the A320neo family has not slowed, despite problems with both the (CFM) International Leap and Pratt & Whitney (PRW) (PW1000G) geared turbofans that power them. (DEA) is “most focused” on the Pratt-powered neos, Kelly said, noting that the engine-maker seems “to be through the worst of it.” (DEA)’s portfolio of nearly 1,100 owned or managed aircraft includes 270 A320neos (most among lessors).
Click below for photos:
DEA-737 MAX 8 - 2015-06.jpg
DEA-787 Dreamliner 2018-04.jpg
1 737-200 (JT8D-15/-15A) (22365; 22638; 23320), FOR SALE/LEASE. SOLD 2.
4 737-4D7 (CFM56-3) (2962-28703, /97, HS-TDH; 2968-28704, /97, HS-TDJ; 2977-28701, /98, HS-TDK; 2978-28702, /98, HS-TDL), LEASED TO (TII).
10/5 ORDERS 737-800 (CFM56-7B):
3 737-800 (CFM56-7B), 2015-01.
1 787-8 DREAMLINER, 2015-01.
85 ORDERS 737 MAX 8 (LEAP-1B), WITH SCIMITAR WINGLETS:
15 ORDERS 737 MAX 10:
2 MD-82 (JT8D-219) (49931; 49932), FOR SALE/LEASE.
1 MD-83 (49441, N941MT), RETURNED FROM (JTG)/(ROY) 2005-07.
2 MD-83 (JT8D-219) (49937; 49940).
2 A300C-600RF (755; 758), LEASED TO (CBD).
139 ORDERS A319/A320/A321:
11 ORDERS A319 (V2500).
6 ORDERS A320 (V2500).
6 A320-200 (CFM56-5B), 10 YEAR LEASED TO (ARO) 2007-10.
25 A320 (558; 561; LEASED TO (LAC); 912; 916; LEASED TO (TAC); 258 LEASED TO (CRH), 344 LEASED TO 5 YEARS TO (SHO) 2000-06.
3 ORDERS (2010-02) A320-P2F LST WEST ATLANTIC, FREIGHTER CONVERSION BY AIRBUS FREIGHTER CONVERSIONS (AFC). FREIGHTER.
17 ORDERS A320-P2F, FREIGHTER CONVERSION BY AIRBUS FREIGHTER CONVERSIONS (AFC). FREIGHTER.
1 +5 ORDERS A321 (V2500).
1 A321neo DELIVERED TO SRILANKAN AIRLINES (LNK).
10 ORDERS A319/A320/A321 (CFM56-5B).
9 A330-200 (030; 037; 045), LEASED TO (SAB).
30 ORDERS A330-200, 10 LEASED TO (ARO).
2 A340-300 (036 LEASED TO (LNK); 016 LEASED TO (VAA).
2 F 50.
62 F 100 (TAY 650-25) (11476, RETURNED FROM (TSW) 2000-07). 11470 RETURNED FROM (TPR) 2005-07.
Click below for photos:
DEA-1-Aengus Kelly - 2015-06-A.jpg
DEA-1-Aengus Kelly - 2015-06-B.jpg
PHILIP SCRUGGS, PRESIDENT/(CCO) AERCAP (DEA).
AENGUS KELLY, CHIEF EXECUTIVE OFFICER (CEO) AERCAP (DEA).
ERWIN DEN DIKKEN, (COO) AERCAP (DEA).
KEITH HELMING, CHIEF FINANCIAL OFFICER (CFO) AERCAP (DEA) (EX-(GEF) (2006-08).
THOMAS MACALEAVEY, (CEO) ENGINE LEASING (2007-06).
MICHAEL KING, PRESIDENT AEROTURBINE (AUB) UNIT (2007-10).
HEINRICH LOECHTEKEN, CHIEF INVESTMENT OFFICER (2006-08).
SEAN BRENNAN, GROUP COMPANY SECRETARY.
ERWIN DEN DIKKEN, CHIEF LEGAL OFFICER.
PATRICK DEN ELZEN, HEAD OF TRADING.
SOEREN FERRE, HEAD OF ASIA PACIFIC REGION.
PAUL ROFE, TREASURER (DEA).
AENGUS KELLY, GROUP TREASURER.
FRAUKE OBERDIECK, VP CORPORATE COMMUNICATIONS.
JOCK SEALS, ASSISTANT VP.
KENNETH WIGMORE, HEAD EUROPE, MIDDLE EAST & AFRICA (2014-10).
ANIL MEHTA, HEAD OF EUROPE, MIDDLE EAST, AFRIKA, & INDIAN SUBCONTINENT REGION.
ISRAEL PADRON, GENERAL MANAGER AMERICAS REGION.
COLE REESE, CHIEF TAX & ACCOUNTING OFFICER.
JOE VENUTO, CHIEF TECHNICAL OFFICER (CTO).
RON MEURS, TECHNICAL MANAGER.