NAC and ALC in another deal – This time for Embraer aircraft while Iran Air continues to search for aircraft

Dino D'Amore
By Dino D'Amore June 7, 2016 20:41

NAC and ALC in another deal – This time for Embraer aircraft while Iran Air continues to search for aircraft

The NAC grip on Embraer aircraft leasing tightened today as Air Lease Corporation announced an agreement to sell 25 of its Embraer E190 and E175 aircraft to Nordic Aviation Capital A/S (NAC). Transfers of these aircraft to NAC will begin this quarter and are expected to conclude in Q1 of 2017. As the aircraft are moved, ALC expects to use some of this capital to add incremental aircraft acquisitions as market conditions permit. Martin Møller, Chairman of Nordic Aviation Capital A/S commented: “We are delighted to be expanding our relationship with ALC. We are also happy to be growing our Embraer fleet, but most importantly we are looking forward to expanding our relationship with key clients and adding several new clients,”

For ALC Steven F. Udvar-Házy, Chairman and Chief Executive Officer of Air Lease Corporation commented: “We are pleased to have reached attractive terms on another win-win transaction with NAC,” said. “After our teams successfully worked together on the ATR aircraft portfolio transaction, NAC saw additional value in our fleet of Embraer aircraft. The regional jet business has been very successful for ALC and the timing is now appropriate for us to have a smaller role in this market segment and to refocus our resources on growing our main line jet fleet.”

NAC has had a rip roaring 2016 thus far – see the full story in Airline Economics issue 32 out later this week.

Meanwhile: Iranair Chairman Farhad Parvaresh has confirmed that he is in negotiations with Boeing for a very large aircraft order but the question remains – How will the aircraft be financed and will the US government grant Boeing the permits to sell the aircraft to them in the end anyway?
The simple fact is that Iran Air is trying to cover off all bases and see which aircraft are able to be financed and delivered – Right now with UKEF and US Ex-Im effectively closed for new business there is very little chance of financing large aircraft into Iran Air – One wonders if Airbus will step-in with a consortium of financiers with French and German banks taking the lead soon?

Meanwhile Giovanni Castellaneta, chairman of Italy’s export credit agency, SACE, has stated that the agency plans to move into Islamic finance to “reach more customers”, which includes Iranian customers after the lifting of sanctions. Although the main target of such export guarantees would be oil and gas as well as transportation infrastructure projects, SACE has contributed to funding aircraft, specifically the Russian/Italian Superjet 100

SACE is studying the more common Islamic structures for financing investment and export contracts to be able to amend its own standard guarantees to become Shariah compliant.

“It seems that only a few amendments would be needed to make the conventional supplier credit scheme compliant with sharia principles,” Ferioli said. “An international bank with Islamic window operations should easily discount the receivables insured by SACE.”

Dino D'Amore
By Dino D'Amore June 7, 2016 20:41