Avolon

Lessor Orderbooks to Be in High Demand as Supply Shortage of Aircraft Continues

Retrieved on: 
Friday, January 26, 2024

The delivery of over 1,450 new large commercial aircraft will help drive airlines’ passenger revenues up 12% to US$717 billion.

Key Points: 
  • The delivery of over 1,450 new large commercial aircraft will help drive airlines’ passenger revenues up 12% to US$717 billion.
  • Airlines and lessors that waited to commit to new orders to source new aircraft risk waiting into the next decade for supply.
  • Manufacturers: The undersupply of aircraft will take years to unwind, increasing the value of delivered aircraft, and extending their economic lives.
  • Airlines’ growth in 2024 will be supported by around US$100 billion in new aircraft deliveries, with lessor orderbooks and capital supporting fleet expansion plans.

Avolon Continues to Drive Growth With Orders for Additional 140 Aircraft

Retrieved on: 
Tuesday, December 12, 2023

Avolon, a leading global aviation finance company, has agreed to order 100 A321neo aircraft from Airbus and 40 737 MAX aircraft from Boeing.

Key Points: 
  • Avolon, a leading global aviation finance company, has agreed to order 100 A321neo aircraft from Airbus and 40 737 MAX aircraft from Boeing.
  • Avolon has added 200 new technology aircraft to its orderbook this year direct from OEMs, building on previous orders for 20 Airbus A330neos in September and 40 737 MAXs from Boeing in June.
  • The orderbook expansion increases Avolon’s owned, managed and committed fleet from 897 at September 30 2023 to 1037 aircraft.
  • We have committed to direct orders for 200 new, fuel-efficient aircraft this year, supporting the transformation of our fleet to lower emissions aircraft.

Avolon Announces Pricing of US$400 Million Senior Unsecured Notes Offering

Retrieved on: 
Tuesday, December 5, 2023

Avolon Holdings Limited (“Avolon”), a leading global aviation finance company, announces the pricing of a private offering (the “Offering”) by its wholly owned subsidiary, Avolon Holdings Funding Limited, for a principal aggregate amount of US$400 million of 6.375% senior unsecured notes due 2028 (the “Notes”).

Key Points: 
  • Avolon Holdings Limited (“Avolon”), a leading global aviation finance company, announces the pricing of a private offering (the “Offering”) by its wholly owned subsidiary, Avolon Holdings Funding Limited, for a principal aggregate amount of US$400 million of 6.375% senior unsecured notes due 2028 (the “Notes”).
  • The Notes were priced at 100.296% of par value (a yield of 6.295%), plus accrued interest from November 4, 2023.
  • The Notes will be issued as additional notes under the indenture, dated May 4, 2023 (the “Indenture”), pursuant to which Avolon Holdings Funding Limited issued $750 million aggregate principal amount of 6.375% senior unsecured notes due 2028 (the “Initial Notes”).
  • The Notes will be fully and unconditionally guaranteed by Avolon, and by certain of its subsidiaries.

Potential for €2.55 billion Sustainable Aviation Fuel (SAF) Industry in Ireland by 2050

Retrieved on: 
Wednesday, October 25, 2023

Ireland has the potential to develop a sustainable aviation fuel (SAF) industry generating revenue of €2.55 billion by 2050 and providing up to 1,000 high-skilled jobs.

Key Points: 
  • Ireland has the potential to develop a sustainable aviation fuel (SAF) industry generating revenue of €2.55 billion by 2050 and providing up to 1,000 high-skilled jobs.
  • The study - Ireland’s Sustainable Aviation Fuel Opportunity - was launched today by the Minister for Enterprise, Trade and Employment, Simon Coveney TD, and looks at the key role SAF will play in helping the aviation industry achieve its net zero goal by 2050.
  • The European Union’s ReFuelEU initiative obligates fuel suppliers to blend SAF into the fuel available at all EU airports, rising from 6% SAF by 2030, to 70% by 2050.
  • To meet EU mandated SAF volumes alone, Ireland will require approximately 10 SAF plants of 80 kilo tonnes production capacity each.

Avolon Q3 Business Update

Retrieved on: 
Thursday, October 5, 2023

Avolon, a leading global aviation finance company, issues an update for the third quarter (‘Q3’) of 2023.

Key Points: 
  • Avolon, a leading global aviation finance company, issues an update for the third quarter (‘Q3’) of 2023.
  • Executed 43 lease transactions comprising new aircraft leases, follow-on leases and lease extensions;
    Delivered 7 new aircraft and transitioned 4 aircraft to a total of 7 customers;
    Sold 14 aircraft and entered letters of intent for the sale of a further 15 aircraft;
    Entered into letters of intent for the sale and leaseback of 16 aircraft;
    Confirmed order for 20x A330neo aircraft, and placed the first of these aircraft;
    Added 1 new customer, giving a total of 147 airline customers operating in 65 countries; and,
    Ended the quarter with an owned and managed fleet of 568 aircraft, with total orders and commitments for 329 fuel-efficient, new technology aircraft.

2023 Second Quarter Results

Retrieved on: 
Thursday, July 20, 2023

- Executed 31 lease transactions comprising new aircraft leases, follow-on leases and lease extensions;

Key Points: 
  • - Executed 31 lease transactions comprising new aircraft leases, follow-on leases and lease extensions;
    - Entered into letters of intent for the sale and leaseback of 9 aircraft;
    - Confirmed order for 40 Boeing 737 MAX aircraft and agreed to order 20 Airbus A330neo aircraft;
    - Delivered 5 new aircraft and transitioned 13 aircraft to a total of 10 customers;
    - Sold 3 aircraft and executed sale agreements for a further 17 aircraft;
    - Entered into letters of intent to place 23 aircraft from our orderbook during the quarter;
    - Added 2 new customers, giving a total of 149 airline customers operating in 65 countries; and,
    - Ended the quarter with an owned, managed and committed fleet of 875 aircraft, including orders and commitments for 297 fuel-efficient, new technology aircraft.
  • “This was an excellent quarter for Avolon which demonstrates the positive net income and lease revenue trajectory of the business.
  • Our increased trading and sale and leaseback activity, along with placement from our order book at attractive lease rates, will drive our financial performance in the future setting the foundation for long-term profitability.
  • Our commitment with Boeing for 40 new 737 MAX aircraft and Airbus for 20 new A330neo aircraft reflects our confidence in the future outlook of the industry and our customers’ demand for additional aircraft to meet future growth plans in an undersupplied market.

Avolon Q2 Business Update

Retrieved on: 
Thursday, July 6, 2023

Avolon, the international aircraft leasing company, issues an update for the second quarter (‘Q2’) of 2023.

Key Points: 
  • Avolon, the international aircraft leasing company, issues an update for the second quarter (‘Q2’) of 2023.
  • Executed 31 lease transactions comprising new aircraft leases, follow-on leases and lease extensions;
    Entered into letters of intent for the sale and leaseback of 9 aircraft;
    Confirmed order for 40 Boeing 737 MAX aircraft and agreed to order 20 Airbus A330neo aircraft;
    Delivered 5 new aircraft and transitioned 13 aircraft to a total of 10 customers;
    Sold 3 aircraft and executed sale agreements for a further 17 aircraft;
    Entered into letters of intent to place 23 aircraft from our orderbook during the quarter;
    Added 2 new customers, giving a total of 149 airline customers operating in 65 countries; and,
    Ended the quarter with an owned and managed fleet of 578 aircraft, with total orders and commitments for 297 fuel-efficient, new technology aircraft.
  • Fitch improved Avolon’s BBB- rating outlook from Stable to Positive;
    Raised US$3.4 billion of debt capital in the quarter, including:
    Private offering of US$750 million of senior unsecured notes maturing in 2028;
    US$1.7 billion Term Loan B refinancing with new loan maturing in 2028; and,
    Letter of intent for a US$950 million term financing facility maturing in 2030;
    Published our 2023 World Fleet Forecast, Return to Growth, which predicts that the global commercial aircraft fleet will almost double to 46,880 aircraft in 2042, as the sector addresses a structural long-term shortage of aircraft and sustained demand for travel.

Avolon Agrees Memorandum of Understanding to Order 20 Airbus A330neo Aircraft

Retrieved on: 
Wednesday, June 21, 2023

Avolon, the international aircraft leasing company, has today signed a memorandum of understanding with Airbus at the Paris Air Show to order 20 Airbus A330neo aircraft.

Key Points: 
  • Avolon, the international aircraft leasing company, has today signed a memorandum of understanding with Airbus at the Paris Air Show to order 20 Airbus A330neo aircraft.
  • Avolon was a launch customer for the A330neo programme in 2014 and has fully placed its current widebody order book.
  • The A330neo has a range of over 13,300km (7,200 nautical miles) and 25% lower fuel consumption and CO2 emissions compared to previous generation aircraft.
  • This agreement will also see 50 A320neo aircraft Avolon has on order with Airbus converted to the larger A321neo model.

Avolon Forecasts Global Passenger Fleet to Almost Double By 2042

Retrieved on: 
Tuesday, June 13, 2023

Avolon, the international aircraft leasing company, today publishes its World Fleet Forecast – Return to Growth – projecting trends in the commercial passenger aviation fleet out to 2042.

Key Points: 
  • Avolon, the international aircraft leasing company, today publishes its World Fleet Forecast – Return to Growth – projecting trends in the commercial passenger aviation fleet out to 2042.
  • It forecasts the fleet will almost double by 2042, growing 94% to 46,880 aircraft, underpinned by sustained growth in demand for air travel, building on the rapid recovery experienced since the pandemic.
  • Airbus is set to maintain its strong market position in the narrowbody segment accounting for 58% of the global narrowbody fleet in 2042, compared to 53% currently.
  • Emerging markets and their growing middle class underpin our forecast for continued expansion of the global fleet.

Avolon Announces Pricing of US$750 Million Senior Unsecured Notes Offering

Retrieved on: 
Monday, May 1, 2023

Avolon Holdings Limited (“Avolon”), the international aircraft leasing company, announces the pricing of a private offering (the “Offering”) by its wholly owned subsidiary, Avolon Holdings Funding Limited, for a principal aggregate amount of US$750 million of 6.375% senior unsecured notes due 2028 (the “Notes”).

Key Points: 
  • Avolon Holdings Limited (“Avolon”), the international aircraft leasing company, announces the pricing of a private offering (the “Offering”) by its wholly owned subsidiary, Avolon Holdings Funding Limited, for a principal aggregate amount of US$750 million of 6.375% senior unsecured notes due 2028 (the “Notes”).
  • The Notes will be fully and unconditionally guaranteed by Avolon, and by certain of its subsidiaries.
  • The Offering is expected to close on or about 4 May 2023, subject to customary closing conditions.
  • Net proceeds from the Offering will be used for general corporate purposes, which may include the future repayment of outstanding indebtedness.