Aviation is a more than century old industry, with air travel became part of our modern life, and instrumental for global economic growth. Aviation industry had witnessed and survived many exogenous shocks that may had left a dent but never disrupted the long-lasting fundamentals of the industry. Nevertheless, with every historical juncture, appealing opportunities introduce themselves to maven investors, with short-term volatility creates opportunistic entry point for long-term investors
Financing aircrafts has always been crucial for the sustainable growth of the commercial aviation industry. Since 1975, Aircraft leasing- in specific- has been the most noticeable source of aircraft finance. Back then, aircraft leasing represented less than 5% of the overall operating fleet worldwide, which by time has grown to over 40% as airlines realized the importance of lease to the grow their business. Leased aircrafts are expected to grow its share in the world’s fleet to reach 50% in the next 20 years.
Financing aircrafts enjoys the virtue of being asset-backed exposure with predictable long-term cash flows, resulting in favorable risk adjusted return that is typically uncorrelated to traditional investments universe.”
Aircrafts are real international assets and that explains our focused strategy of being global in nature. Our strategy can be outlined as:
- Sale-Lease-Back with Airlines
- Portfolio Acquisitions from Lessors
- Invest in Equity and Mezzanine capital stacks.
- Oringinate limited recourse senior financing from international banks.
Business
Model
- Income generating passenger aircraft.
- Narrow-body (e.g, A320 family, A220 family, 737-800s)
- Wide-body (e.g. 787- family, Airbus 350 family)
- New to 10 Years Vintages
Metal /
Asset
- Operating Leases, Finance Leases, and Watertight Structures
- Flagship and Full Service Network Carriers
- Low-Cost Carriers with strong operatial track records.
- Regional Airlines
Exposure/
Credit