Avolon continues strong growth as fleet jumps to 443
the Irish-headquartered aircraft leasing firm Avolon reported strong growth in the second quarter of its financial year as it increased its owned, managed and committed fleet to 443.
During the three-month period the company delivered 11 aircraft to seven customers and sold a further five. Avolon also said it has letters of intent in place for 13 further sales due to be completed this year.
The firm's fleet increased by 70pc year on year with the rise driven by the acquisition of 45 aircraft from GE Capital Aviation Services.
The aircraft, which are due to be delivered to Avolon in the second half of 2016, are on lease to 29 airlines in 15 countries.
Avolon described the new aircraft as "young, modern, and fuel efficient". The acquisition also brings 15 new customers to the company.
Outside of portfolio acquisitions Avolon also operates in sale-leaseback transactions with airlines and direct orders from airlines.
The company also said the acquisition demonstrates its ability to operate in all three channels.
The leasing company increased its committed debt facilities by around €500m in the second quarter as it looks to strengthen its balance sheet and add extra liquidity for growth.
The Dublin-headquartered firm was set up in Ireland six years ago by leasing duo Domhnal Slattery and John Higgins.
The company is a wholly-owned indirect subsidiary of Bohai Leasing, a publicly listed Chinese company. The deal was awarded 'Deal of the Year' by Finance Dublin after Bohai secured the firm for $7.6bn.
Following the deal Avolon completed the integration of Hong Kong Capital fleet and processes into Avolon.
Avolon said its average aircraft age now stands at 3.4 years with an average lease term remaining of 7.4 years at the end of the second quarter.
Earlier in the year Mr Slattery pointed out the demand for aircraft in China, saying the country will need $1 trillion worth of new planes over the next year.
The Avolon chief was speaking on Bloomberg in January when he said the country had grossly under-ordered aircraft by 750 planes.
"Quite simply, if we look at Asia there's 600 million to 700 million in the middle class. That's going to grow in the next 20 years to 2.6 billion people. That's 400pc growth," Mr Slattery said.