IRISH AIRCRAFT leasing group Avolon will today announce significant sale and leaseback deals with Ryanair and AirAsia that will see it deliver nine planes to the low-cost airlines by early 2012.
The company, founded last year by Domhnal Slattery, has also raised an additional $600 million in debt in the past 90 days. This brings its total loan facilities to $2.6 billion from 15 institutions.
The additional finance includes export credit financing, pre-delivery funding, second lien financing and additional long-term debt facilities.
Avolon has agreed to lease five Boeing 737-800s to Ryanair and four Airbus A320s to AirAsia. These form part of sale and leaseback deals with the airlines.
Seven of the planes will be delivered to the airlines this week – including the five to Ryanair – with the other two early next year.
Avolon has signed seven-year lease agreements with Ryanair while the AirAsia deals will have a 12-year duration.
The nine aircraft cost $740 million at list price. It is not clear how much Avolon paid to purchase the aircraft but it will have received large discounts on the list prices.
This brings Avolon’s committed fleet to 88, with 25 customers in 18 countries. The total value of the fleet is more than $4 billion.
Speaking to The Irish Timesyesterday, Avolon's chief commercial officer John Higgins said: "The significance for us is that they are two heavy-hitting global airlines . . . it's great for Avolon to get over the line with them."
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