AerCap agrees $2.6bn sale-leaseback with LATAM

Victoria
By Victoria May 30, 2013 10:09

AerCap agrees $2.6bn sale-leaseback with LATAM

AerCap has entered into a $2.6 billion purchase and leaseback agreement with LATAM Airlines Group for 25 widebody aircraft, with deliveries scheduled between 2013 and 2017. The aircraft consist of nine new Airbus A350-900s, four new Boeing 787-9s, and two new Boeing 787-8s from LATAM’s order backlog, and ten Airbus A330-200s with an average age of four years. The appraised value of the 25 aircraft is approximately $3 billion.
AerCap will purchase the aircraft from LATAM Airlines Group and immediately lease them back to LATAM. AerCap expects to finance the aircraft with a combination of funding from the capital markets, the bank markets, and its existing warehouse facility.
“AerCap is delighted to have completed this landmark transaction with LATAM Airlines Group, one of the global leaders of the airline industry and one of AerCap’s most prestigious customers for over 20 years,” said AerCap’s CEO Aengus Kelly. “This transaction provides AerCap with an attractive opportunity to expand our widebody portfolio with the most in-demand, new technology aircraft and to place them on long-term leases to one of the world’s leading airlines. The agreement with LATAM Airlines Group is evidence of the increasing opportunities we are seeing for large-scale transactions as many airlines begin to take delivery of the significant orders placed at the beginning of this decade and use operating leasing as a key financing tool.”
AerCap’s strategy of ensuring it has the liquidity available to pursue large and lucrative deals rather than compete with the masses of lessors for one or two sale-leaseback deals with many airlines, has certainly paid off with this deal with LATAM. AerCap is in the very advantageous position of being able to rely on its existing financing facilities to fund the A330s immediately and indeed the other deliveries and also has the luxury to explore the best options to refinance the aircraft over a longer term in the capital markets at a time that suits them. Airline Economics spoke at length with Mr Kelly on this deal and his long-term strategy going forward, the full interview and a review of AerCap will appear in the forthcoming issue of Airline Economics, Issue 14, which will be published in time for the Paris Air Show.

Ensure you receive your own copy by subscribing today. The price is just £149 for six issues for subscribers located in UK/EU/US and Canada and £189 for those located in the rest of the world. Sign up online now by clicking here http://www.aviationnews-online.com/products-page/ or you can email John Pennington john@aviationnews-online.com who will be pleased to do this for you (discounts are available for corporate subscriptions for more than 10 copies – please enquire).

Mr Kelly will also be speaking at the Airline Economics Growth Frontiers conference in Dublin in January 2014. Although it seems a long time away, bookings are being taken at pace. As numbers are capped (especially at our awards evening – those that book first are ensured a table closer to the stage), it is prudent to book sooner rather than later to secure your place. Please book here http://www.aviationnews-online.com/dublin/booking-form.html or contact John Pennington for more information. The conference schedule has just been published that again shows a stellar line up. Please contact John who will be pleased to send you a PDF: email: john@aviationnews-online.com or call: +44 (0) 1630 647 259.

Victoria
By Victoria May 30, 2013 10:09
No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Feditorial-comment%2Faercap-agrees-2-6bn-sale-leaseback-with-latam%2F"> registered </a> users can comment.