Avolon Fleet Reaches 971 Aircraft Following Very Active 2018
January 09 2019 - 6:48AM
Business Wire
- Delivered and transitioned 61
aircraft to 30 customers, including the world’s first A330neo, and
sold 87 aircraft
- Ordered 100 Airbus A320neo family
aircraft, increasing owned, managed and committed fleet to 971
aircraft
- 30% shareholding acquired by ORIX,
accelerating Avolon’s path to Investment Grade
- Increased revolving debt facilities
by US$1.3 billion to US$4.2 billion
- Launched Sapphire Aviation and Jade
Aviation asset management vehicles
Avolon, the international aircraft leasing company, issues an
update for 2018 fourth quarter (“Q4”) and full year (“FY”).
AVOLON FLEET METRICS | END Q4 2018
Q4 2017
Q4 2018
Change
Owned, managed and committed
fleet(aircraft)
908 971 7% Owned and managed fleet (aircraft) 569 561 (1%) Airline
Customers 153 150 (2%)
Q4 FLEET METRICS & BUSINESS HIGHLIGHTS
- Delivered a total of 10 new aircraft to
7 customers, and sold 25 aircraft, including the sale of 6 aircraft
to Jade Aviation, Avolon’s joint venture (‘JV’) with China
Cinda;
- Transitioned 5 aircraft to new
lessees;
- Executed a total of 46 lease
transactions, comprising new aircraft leases, second leases and
lease extensions;
- Total customer base of 150 airlines in
61 countries at the end of the quarter; and
- Delivered the world’s first Airbus
A330neo to TAP Airlines.
Q4 STRATEGIC & FINANCIAL HIGHLIGHTS
- Ordered 100 Airbus A320neo family
aircraft valued at US$11.5 billion at list prices, adding to
Avolon’s exclusively new technology orderbook;
- ORIX Corporation, through its wholly
owned subsidiary ORIX Aviation Systems, acquired a 30% stake in
Avolon for US$2.2 billion;
- Moody’s upgrade of Avolon’s corporate
credit rating to Ba1;
- Increased unsecured revolving credit
facility by US$400 million to US$2.2 billion;
- Repaid US$772 million of public secured
debt, including US$407 million of Asset Backed Notes associated
with Emerald Aviation Finance Limited and US$365 million of
Avolon’s secured TLB-3, in line with Avolon’s corporate objective
to increase the level of unencumbered assets in its portfolio;
and
- Contracted the sale of a portfolio of
49 regional jet aircraft to Falko.
2018 FULL YEAR HIGHLIGHTS
- Added ORIX Aviation Systems as a new
30% shareholder and incorporated an associated governance structure
which enhances protections for debt investors. Specifically, the
transaction:
- Diversified and strengthened the
financial profile of Avolon’s shareholder base; and
- Increased momentum on Avolon’s path to
Investment Grade with Fitch placing Avolon on positive outlook and
Moody’s upgrading Avolon’s corporate credit rating to Ba1.
- Consolidated position as the third
largest aircraft lessor with an order for 100 Airbus A320neo family
aircraft and positioned Avolon as Airbus’ largest aircraft lessor
backlog customer;
- Delivered a total of 61 aircraft
including 28 transitions to 30 customers. This included the world’s
first Airbus A330neo to TAP Airlines;
- Sold 87 aircraft in 2018, including 47
aircraft to Avolon’s Sapphire and Jade Aviation joint
ventures;
- Executed a total of 153 lease
transactions, comprising new aircraft leases, second leases and
lease extensions and 130 sale agreements;
- Established two asset management
platforms in partnership with third-party investors.
- Jade Aviation in partnership with China
Cinda Asset Management, one of the largest asset managers in China.
At year end Jade Aviation had acquired 6 aircraft from the Avolon
fleet; and
- Sapphire Aviation Finance platform,
which acquired 41 aircraft from the Avolon fleet with the issuance
of US$768 million of senior secured notes and a majority equity
investment from a third-party investor.
- Successfully raised a total of US$4.2
billion of debt (excluding Sapphire) including US$1.5 billion
of senior unsecured notes and US$1.3 billion of warehouse and other
revolving credit capacity; and
- Total revolving debt facilities of
US$4.2 billion at 31 December 2018.
Dómhnal Slattery, CEO Avolon, commented: “Avolon enters
2019 following another strong quarter and full year. We now have a
portfolio-offering that is focused exclusively on young, modern,
new technology and fuel efficient single and twin aisle aircraft
types. Our record-setting full year was underpinned by our robust
lease and trading activity, where we delivered and transitioned 61
aircraft and sold 87 aircraft. Additionally, our recently announced
Airbus order provides us with locked-in growth for the medium-term,
helping us support the fleet requirements of our airline customers
around the world.
Our business continues to deliver strong results and our
financial strength, coupled with our increasingly unencumbered
asset base and diversified shareholder base, positions us well to
achieve an investment grade rating. We remain excited about the
prospects for the business and have confidence that we will
continue to deliver value for our shareholders into the
future."
ENDS
About Avolon Headquartered in Ireland, with offices in
the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon
provides aircraft leasing and lease management services. Avolon is
70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a
Chinese public company listed on the Shenzhen Stock Exchange (SLE:
000415) and 30% owned by ORIX Aviation Systems, a subsidiary of
ORIX Corporation, which is listed on the Tokyo and New York Stock
Exchanges (TSE: 8591; NYSE: IX). Avolon is the world’s third
largest aircraft leasing business with an owned, managed and
committed fleet, as of 31 December 2018 of 971 aircraft.
Website: www.avolon.aeroTwitter: @avolon_aero
Note Regarding Forward-Looking Statements This document
includes forward-looking statements, beliefs or opinions, including
statements with respect to Avolon’s business, financial condition,
results of operations and plans. These forward-looking statements
involve known and unknown risks and uncertainties, many of which
are beyond our control and all of which are based on our
management’s current beliefs and expectations about future events.
Forward-looking statements are sometimes identified by the use of
forward-looking terminology such as “believe,” “expects,” “may,”
“will,” “could,” “should,” “shall,” “risk,” “intends,” “estimates,”
“aims,” “plans,” “predicts,” “continues,” “assumes,” “positioned”
or “anticipates” or the negative thereof, other variations thereon
or comparable terminology or by discussions of strategy, plans,
objectives, goals, future events or intentions. These
forward-looking statements include all matters that are not
historical facts. Forward-looking statements may and often do
differ materially from actual results. No assurance can be given
that such future results will be achieved.
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version on businesswire.com: https://www.businesswire.com/news/home/20190109005416/en/
Ross O’ConnorHead of Investor Relationsroconnor@avolon.aeroT:
+353 1 231 5818
Emmet MoloneyHead of Communicationemoloney@avolon.aeroT: +353 1
556 4429
Jonathan NeilanFTI Consultingavolon@fticonsulting.comM: +353 86
231 4135
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