Aviation finance company Avolon has provided an update on its activities for the third quarter (Q3) of 2024. The company sold 11 aircraft during the period, resulting in 59 aircraft now agreed for sale. Additionally, Avolon delivered nine new aircraft and transitioned five aircraft to a total of 11 customers. It has entered into letters of intent for the sale and leaseback of nine aircraft. The company’s customer base now spans 141 airlines operating across 62 countries. By the end of Q3, Avolon had an owned and managed fleet of 577 aircraft, with a total of 442 orders and commitments for fuel-efficient, new-technology planes.
In a significant strategic move, Avolon also announced the acquisition of Castlelake Aviation Limited’s portfolio, comprising 105 aircraft, two engines and 13 aircraft commitments. The portfolio is valued at approximately US$5 billion and includes aircraft with an average age of 4.7 years, with 70% of the fleet invested in new technology models. Up to US$3.3 billion of transferable debt will be available to Avolon upon closing, with the remainder of the transaction funded from the company’s existing liquidity sources.
Following this acquisition, Avolon’s pro forma owned, managed and committed fleet will expand to 1,137 aircraft as of September 30, 2024. Despite the significant addition, Avolon’s balance sheet metrics remain within the target investment grade ranges. The transaction is expected to be finalised in the first quarter of 2025, subject to customary closing conditions.
This acquisition aligns with Avolon’s strategy to enhance its portfolio with modern, fuel-efficient aircraft and strengthen its position in the global aviation finance market.
