Apollo Aviation’s fleet grows by 64% in 2016

Eleanor Steed
By Eleanor Steed January 10, 2017 17:32

Apollo Aviation’s fleet grows by 64% in 2016

Apollo Aviation Group (together with its affiliates, “Apollo Aviation”), a multi-strategy aviation investment manager, announced today that in 2016 its fleet of mid-life aircraft grew by 64 percent while its assets under management (which includes invested capital, indebtedness and available capital) grew by 42 percent to $3.5 billion.

In the fourth quarter, Apollo Aviation acquired six in-production narrowbody aircraft from the A320 and B737NG families, for $131 million. This brought the aggregate number of aircraft Apollo Aviation acquired in 2016 up to 55 with a total purchase price of $1.28 billion.

Of the 55-aircraft acquired, 46 were narrowbody while nine were widebody with 96 percent of the aircraft being in-production models. The aircraft are from the A320ceo, B737NG and B757 families and 53 aircraft had leases attached. Additionally, Apollo Aviation acquired six engines.

Robert Korn, Apollo Aviation’s President, explained, “We gained 20 new customers in 2016 which drove demand for our mid-life fleet, taking it to over 100 aircraft last year. With industry forecasts predicting the number of planes in service to double over the next 20 years, we are confident that our fleet – already at 131 aircraft – will continue to grow to meet increasing customer demand.”

Also in 2016, Apollo Aviation completed two asset backed securitizations, AASET 2016-1 and AASET 2016-2, raising $1.15 billion to finance 67 aircraft.

William Hoffman, Apollo Aviation’s Chairman said, “The securitizations have provided us with a very efficient structure for permanent financing of our fleet. Our significant experience in all aspects of mid-life commercial aircraft and strong industry relationships have enabled us to create highly attractive aircraft portfolios. Having now completed three securitizations, Apollo Aviation has established a firm foothold as a leading aviation focused asset manager.”

Eleanor Steed
By Eleanor Steed January 10, 2017 17:32