Saturday, 7 September 2019

Investment firm pull out of deal at Avolon's parent company.

Aircraft leasing giant, Avolon may find it has a new owner in the not too distant future after one of its parent company's backers pulled the plug from a massive investment deal.

The Asian private equity firm RRJ Capital has pulled out of a $750 million investment in Bohai Leasing - a subsidiary of the troubled Chinese giant HNA Group and the majority owner of Avolon, according to local media in Singapore. 

The HNA Group has been rapidly selling off assets in recent years,  some at vastly reduced and bargain basement prices as it tries to cut vast losses by concentrating on key core businesses. According to those closest to the deal, RRJ pulled out nearly two weeks again although the full reasons have not been made public at this stage.

Avolon is one of the worlds largest aircraft leasing firms serving 149 airlines across 60 countries with a massive fleet of some 923 aircraft, including 211 Airbus A320ceos', 258 Airbus A320neos', 89 Airbus A330's, 21 Airbus A350's and various Boeing models.  The firm was established in 2010 and last year it achieved a US$717 million profit on a total revenue of US$2.6 billion. 

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