DUBLIN & HONG KONG--(EON: Enhanced Online News)--Avolon, the international aircraft leasing company, issues an update for the first quarter of 2017 (‘Q1’).
Avolon completed the acquisition of the CIT Group aircraft leasing business (‘CIT Aviation’) on 4 April, 2017 creating the world’s third largest aircraft leasing company. This update provides details of the activity of both Avolon and CIT Aviation during Q1 and the pro-forma combined fleet details for the end of the quarter.
Q1 Strategic & Financial Highlights
- US$8.5 billion raised in public capital markets to finance the acquisition of CIT Aviation;
- Increased debt facilities by c. US$420 million during the quarter providing additional financial flexibility;
- Receipt of corporate/issuer credit ratings from Fitch (BB), Moody’s (Ba3) and S&P Global (BB+);
- Published new ‘White Paper’ - The Land of Silk and Money - which explores the development, growth and gradual maturing of China’s domestic airline industry; and
- Appointment of three additional independent Directors to the Avolon Board.
Q1 Business Highlights
- The pro-forma combined businesses delivered a total of 17 aircraft in Q1 and sold 20 aircraft (including three managed aircraft):
- Avolon and CIT Aviation also completed a total of 21 lease transactions in the quarter comprising new aircraft leases, secondary leases and lease extensions.
Combined Q1 Fleet Metrics
- Owned & managed fleet of 565 aircraft at end of Q1 2017; more than double Avolon’s Q1 2016 fleet;
- Owned, managed & committed fleet of 850 aircraft at end of Q1; again more than double Avolon’s Q1 2016 fleet;
- Average owned fleet age of 4.9 years with average remaining lease term of 6.7 years at end of Q1; and
- Total customer base of 150 airlines in 63 countries at end of Q1.
Q1 2017 Pro-forma Fleet
Avolon + CIT Aviation
|Owned & managed fleet (aircraft)||223||565||+153%|
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 a wholly-owned, indirect subsidiary of Bohai Capital Holding Co., Ltd., a Chinese public company listed on the Shenzhen Stock Exchange (SLE: 000415). Avolon is the world’s third largest aircraft leasing business with a pro-forma owned, managed and committed fleet, as of 31 March, 2017 of 850 aircraft valued at c. US$43 billion.
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.