Business Irish

Monday 10 December 2018

Avolon chief Slattery says air leasing giant 'remains strong'

Domhnal Slattery, chief executive of Avolon
Domhnal Slattery, chief executive of Avolon
John Mulligan

John Mulligan

The CEO of Dublin-based aircraft leasing giant Avolon, Domhnal Slattery, has said the company remains strong and cash generative, apparently alluding in a trading update to continuing market concerns regarding its parent company's huge debt pile.

Within the past few weeks, China's HNA conglomerate, which owns Avolon via a listed subsidiary, engaged in a bond buyback designed to allay concerns about its liquidity and ability to service debt.

HNA has engaged in a huge $40bn buying spree in recent years. It owns or has stakes in companies such as Hilton Worldwide, Swissport, Hainan Airlines, and Deutsche Bank.

Avolon was acquired by HNA's Bohai Leasing unit in 2016. Last year, Avolon completed the $10.4bn (€8.7bn) acquisition of the leasing arm of CIT. That propelled Avolon to being the world's third-largest aircraft leasing company.

Mr Slattery co-founded Avolon in 2010. It now has an owned, managed and on-order fleet of 908 aircraft. Last year, it placed a firm order for 75 Boeing 737 MAX aircraft, with options for 20 MAX 8 jets.

In its trading update, Avolon pointed out that it raised $14.9bn of capital last year, including equity and debt.

"We believe that our strong cash flows, credit metrics and proven management team are a testament to the strength of our business," said Mr Slattery.

Irish Independent

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