Avolon agrees sale of 33-aircraft portfolio to Lesha Bank

Dublin based airliner leasing specialist Avolon has agreed the sale of a portfolio of 33 commercial aircraft to Qatar-based Lesha Bank, in a transaction that further strengthens the relationship between the global aviation finance company and the financial institution.

Announced on 28th of September, the transaction comprises a diversified portfolio of aircraft currently leased to 25 airlines around the world.

The deal highlights the continuing appetite among institutional investors for aviation assets, particularly aircraft already placed with established airline customers. For Avolon, the transaction also forms part of its broader strategy of actively managing its aircraft portfolio and recycling capital through aircraft trading.

Avolon is one of the world’s major aircraft leasing companies, providing aircraft financing and leasing solutions to airlines globally. The company said the transaction demonstrates the continued strength of investor demand for high-quality aviation assets.

Once the transaction is completed, the aircraft will be managed by Lesha Aviation Services, the aviation asset management arm associated with Lesha Bank. The addition will take Lesha Bank’s total managed fleet to more than 75 aircraft.

The transaction represents another step in the development of the relationship between Avolon and Lesha Bank, with the portfolio giving Lesha’s aviation business further scale and exposure to a diversified group of airline operators.

For Lesha Bank, the acquisition is part of a strategy to build its aviation leasing activities around a portfolio of aircraft and established lessees, while maintaining a Shari’a-compliant investment structure.

Mr Mohammed Ismail Al Emadi, Group Chief Executive Officer of Lesha Bank, said the acquisition reflected the bank’s approach to building scale within aviation leasing.

“This acquisition reflects the disciplined approach we have taken to building scale in aviation leasing,” he said.

“Adding a portfolio of this calibre, with established lessees and a strong technology mix, reinforces the resilience and long-term earnings profile we are targeting across our Shari’a-compliant aviation portfolio. Managed through Lesha Aviation Services, we expect this portfolio to deliver stable, diversified returns for years to come.”

For Avolon, aircraft trading provides a way of actively managing the composition of its fleet and releasing capital that can subsequently be deployed into new opportunities across the aviation finance market.

Andy Cronin, Chief Executive Officer of Avolon, said: “We are pleased to partner with Lesha Bank on this significant transaction. Aircraft trading is a core part of Avolon’s strategy, enabling us to actively manage our portfolio, realise value and recycle capital.

“This agreement reflects the continued strength of investor demand for aviation assets and the scale and capabilities of Avolon’s global platform.”

The 33-aircraft portfolio is described as diversified, with the aircraft currently supporting operations across 25 airline customers. Neither Avolon nor Lesha Bank has disclosed the individual aircraft types, airlines or financial value of the transaction.

The deal comes as aircraft leasing continues to play an increasingly important role in airline fleet planning, allowing carriers to access modern aircraft without having to fund the full cost of ownership directly.

For lessors and investors, meanwhile, aircraft can provide long-term exposure to commercial aviation while allowing portfolios to be diversified across multiple airlines, aircraft types and geographic markets.

With the addition of the Avolon portfolio, Lesha Bank’s managed fleet will pass the 75-aircraft mark, giving Lesha Aviation Services a substantially larger platform from which to develop its aviation asset management activities.

Completion of the transaction remains subject to the customary closing conditions.