Avolon plans for future after Boeing deal
Irish aviation leasing group Avolon, which was founded by businessman Domhnal Slattery, is expecting to buy another 38 new aircraft over the next four years after it unveiled a deal with Boeing yesterday to buy 12 of the manufacturer's 737-800 planes.
At list price, the Boeing deal is worth more than $900m (€700m), but Avolon is certain to have negotiated a discount. The aircraft are due to be delivered between 2012 and 2014.
Established earlier this year by Mr Slattery, Avolon has raised $1.4bn of equity and debt from backers including private equity giants Cinven, CVC and Oak Hill Capital Partners.
The order with Boeing, unveiled at the Farnborough Airshow in Britain, brings Avolon's tally of aircraft acquisitions and orders to 35. Avolon expects to have a portfolio of 150 aircraft within the next four years.
Speaking to the Irish Independent, chief executive Mr Slattery said the aircraft orders were part of the firm's strategy to be more than just a sale-and-leaseback provider and to be a full-service lessor with a substantial aircraft asset base.
Further aircraft acquisitions by Avolon will be announced within the next three to four weeks, with the assets being bought from an airline.