Avolon, the international aircraft leasing company, issues an update for the third quarter of 2016.
Following another active quarter, Avolon’s owned, managed and committed fleet at the end of Q3 was 432 aircraft.
Strategic Highlights
The third quarter was marked by two major transactions with a combined value of US$12 billion.
• Agreement to acquire a portfolio of 45 aircraft from GECAS for US$2 billion.
• Agreement to acquire aircraft leasing business of CIT Group, announced on 6 October, for US$10 billion.
Q3 Business Highlights
• Delivered 31 aircraft, including 22 from the GECAS portfolio, to 19 customers.
• 11 aircraft sold: 7 aircraft from owned fleet and 4 aircraft from managed fleet.
• Letters of intent were executed for sale of a further 13 aircraft.
• Increased secured and unsecured committed debt facilities by a total of over US$1 billion in the period, further strengthening the balance sheet and providing additional liquidity to accelerate growth.
• Secured commitment for US$8.5 billion of debt finance, underwritten by Morgan Stanley and UBS, for the acquisition of the CIT Group aircraft leasing business.
• 23 aircraft from the GECAS portfolio are scheduled to be delivered in Q4.
Q3 Fleet Metrics
• Owned and managed in-service fleet of 247 aircraft; an increase of 60% on Q3 2015.
• Owned, managed and committed fleet increased by 67% on Q3 2015 to 432 aircraft.
• Average age of owned fleet of 3.2 years with an average remaining lease term of 7.5 years at end of Q3.
• Total customer base increased to 84 airlines in 40 countries.
Q3 2015 Q3 2016 Change
Owned, managed
& committed fleet (aircraft) 258 432 +67%
Owned & managed fleet (aircraft) 154 247 +60%
Airline Customers 56 84 +50%
