AerCap and Safran Sign Joint Venture Agreement for Shannon Engine Support

AerCap Holdings has announced that following its acquisition of the GE Capital Aviation Services business, it has signed a 20-year joint venture agreement with Safran Aircraft Engines ("Safran") regarding Shannon Engine Support ("SES"). SES, the leading provider of spare engines for CFM International, is now a 50/50 joint company between AerCap and Safran.

SES, the world's largest lessor of CFM56 and LEAP engines, will continue to provide lease engine support to CFM and CFM operators. Aengus Kelly, CEO of AerCap, said, "The SES business is a great fit within the AerCap portfolio, with similar expertise, common assets and a complementary customer base to our wholly-owned engine leasing business. This partnership extends our longstanding relationship with Safran, one of the world's leading aviation companies. We look forward to working with the team at Safran to drive continued success at SES."

Spirit Airlines signs new lease deal for 20 Airbus A320neo aircraft

The U.S. budget carrier Spirit Airlines has signed a big deal with plane leasing giant, AerCap Holdings for the lease of 20 new Airbus A320neo aircraft, with deliveries scheduled to start early next year. 

"This is a significant transaction for AerCap with one of the most successful low-cost carriers in aviation. We are delighted to add 20 aircraft to our already substantial business with Spirit," said Aengus Kelly, CEO of AerCap. "The Airbus A320neo Family will help Spirit grow their fleet in an economical way while advancing its commitment to maintain a highly competitive, fuel-efficient fleet of aircraft equipped with engines that have lower carbon emissions than previous-generation engines. We wish to thank Ted Christie, Scott Haralson and Simon Gore for the confidence they have placed in the AerCap team and we very much look forward to working with them as these aircraft deliver."

"We are excited to further our long-standing, strategic partnership with AerCap. These 20 new aircraft help us achieve our previously announced capacity plans for 2022 and 2023, and our targeted growth in 2024, as we continue our mission of delivering More Go and providing the best value in the sky," said Simon Gore, VP and Treasurer of Spirit Airlines.

More top stories you might be interested in.....

Follow this site here.

AerCap Holdings reported its financial results for the second quarter of 2021

AerCap Holdings, one of the leaders in aircraft leasing, has reported its financial results for the second quarter of 2021, during which it signed lease agreements for 51 aircraft, including 13 widebody aircraft.

 

Aengus Kelly, Chief Executive Officer of AerCap, said, "AerCap generated strong results for the second quarter of 2021. The airline industry is witnessing an unprecedented and rapid recovery in air travel in the world's major markets. For AerCap, this resulted in increased demand for our aircraft and a significant increase in our cash flows. With solid earnings, a strong balance sheet, and an improving leasing environment, we are excited about AerCap's future.

We continue to work hard and make good progress on the regulatory approvals and integration workstreams for the GECAS transaction," said Mr. Kelly. "As the recovery gathers pace, we are even more enthusiastic about the transaction today than we were when we announced it."

Highlights:

Leading aircraft leasing giant AerCap has delivered the first of three new Airbus A321neo to Air Macau

Leading aircraft leasing giant AerCap has delivered the first of three new Airbus A321neo to Air Macau 

Air Macau was established on 13 September 1994, just over a year later on 9th November 1995 the airline took to the skies with its commercial inauguration.  The airline is a regional carrier based in Macau with a fleet of Airbus A321 and A320 aircraft. Destinations served include Beijing, Zhengzhou, Chengdu, Nanjing, Shanghai, Xiamen, Hangzhou, Nanning, Ningbo, Hefei, Taiyuan, Chongqing, Shenyang, Hanoi, Quanzhou, Seoul, Bangkok, Da Nang, Tokyo, Osaka, Kaohsiung and Taipei.

AerCap is the global leader in aircraft leasing. AerCap serves approximately 200 customers in approximately 80 countries with comprehensive fleet solutions. AerCap is listed on the New York Stock Exchange (AER) and has its headquarters in Dublin with offices in Shannon, Los Angeles, Singapore, Amsterdam, Shanghai, Abu Dhabi, Seattle and Toulouse.

AerCap shareholders approve take over of GE Capital Aviation Services

AerCap Holdings N.V. Shareholders Approve Acquisition of 

GE Capital Aviation Services

The Dublin based AerCap Holdings N.V. confirmed on Wednesday that the leasing giant's shareholders has given their approval for a previously announced acquisition of GE Capital Aviation Services GECAS, a General Electric business, at the Annual General Meeting of Shareholders held earlier in the day.   

Of course, the transaction remains subject to the receipt of necessary regulatory approvals and to the satisfaction of other customary closing conditions. Although, nobody is expecting things to go wrong with the take over which is expected to be completed in good order by the end of the year. 

The combined company will be an industry leader across all areas of aviation leasing, with over 2,000 owned and managed aircraft, over 900 owned and managed engines, over 300 owned helicopters and approximately 300 customers around the world.

AerCap Holdings N.V. Reports Financial Results for the First Quarter 2021

AerCap Holdings, a global leader in aircraft leasing has reported its financial results for the first quarter of 2021 ended March 31, 2021.

Aengus Kelly, Chief Executive Officer of AerCap, said, "The first quarter of 2021 was an exceptional one for AerCap, as we announced plans to acquire GECAS from GE, a transaction that we believe will create significant long-term value for our shareholders. At the same time, we continued to focus on our business and we are pleased to report a significant increase in our leasing activity. During the quarter, AerCap signed 60 lease agreements with airlines in 15 countries, the highest demand we have seen in 18 months. We believe this progress reflects the growing confidence of our airline customers as they plan for the future. While parts of the world remain under governmental restrictions, it is clear that there is significant pent-up consumer demand for air travel. As the vaccine rollout progresses, AerCap's global fleet of in-demand new technology aircraft will enable us to support our customers as the recovery in air travel continues." 

Net income for the first quarter of 2021 was $228 million, or $1.76 per share. This was primarily impacted by $100 million of cash accounting and $25 million of GECAS transaction-related expenses, pre-tax. This compares to net income of $277 million, or earnings per share of $2.14, for the same period in 2020.

Excluding GECAS transaction-related expenses, net income for the first quarter of 2021 was $250 million, or $1.93 per share.

AerCap leased, purchased and Sold 70 aircraft in the first quarter of 2021

AerCap, a global leader in aircraft leasing with one of the most attractive order books in the industry, serving approximately 200 customers in approximately 80 countries with comprehensive fleet solutions, has released details of its performance during the first quarter of the year.

The company has its headquarters in Dublin with offices in Shannon, Los Angeles, Singapore, Amsterdam, Shanghai, Abu Dhabi, Seattle and Toulouse.

Signed lease agreements for 60 aircraft, including 28 widebody aircraft and 32 narrowbody aircraft.

Purchased 1 aircraft, 1 Embraer E2.

Executed sale transactions for 9 aircraft, including 2 Airbus A320 Family aircraft, 1 Airbus A330, 2 Boeing 737NGs, 1 Boeing 787-8 and 3 Boeing 767-300ERs from AerCap's owned portfolio.

Issued $1 billion of 5-year senior unsecured notes with a 1.75% coupon.

Entered into a definitive agreement with General Electric (NYSE:GE) under which AerCap will acquire 100% of GE Capital Aviation Services ("GECAS"), a GE business, as previously announced. Entered into a bridge credit agreement, term loan agreement and revolving credit agreement for an aggregate amount of $28.4 billion associated with the acquisition of GECAS.

More top stories you might be interested in.....

AerCap to provide new Norwegian airline Norse Atlantic Airways with 9 former Norwegian Boeing 787 aircraft

Leasing firm AerCap Holdings confirmed today what had been rumoured for a week or so, which was that it will be leasing six used Boeing 787-9 and three used Boeing 787-8 aircraft to the new Norwegian start-up airline Norse Atlantic Airways.

Peter Anderson, Chief Commercial Officer of AerCap, said, "AerCap is excited to announce the signing of lease agreements for nine Boeing 787 aircraft with Norse Atlantic Airways.  With its superior operating characteristics, the 787 is the perfect aircraft for Norse Atlantic Airways to launch a modern long-haul low-cost airline, and we are delighted to be supplying them with their first aircraft.  We wish Norse Atlantic Airways every success and look forward to working with them as they roll out their plan in the years to come." 

"We are thrilled to be partnering with a market leader in AerCap to lease our initial fleet of Dreamliners. Norse Atlantic Airways looks forward to providing our passengers with comfortable, affordable, intercontinental travel aboard these state-of-the-art aircraft," said Bjørn Tore Larsen, Chief Executive Officer of Norse Atlantic.

Norse Atlantic Airways, based in Oslo, Norway, plan to launch long-haul low-cost services, connecting major cities in Europe and the USA with these aircraft scheduled for delivery during 2021.  The Leases are at attractive rates and payment terms, allowing the Norse Atlantic team to offer a flexible implementation during the start-up phase. The lease terms are approximately 8 years for the 787-8 aircraft and approximately 12 years for the 787-9 aircraft. The launch date for Norse Atlantic is expected to be sometime during December 2021, in time for a Christmas rush, but at an otherwise relatively quiet time from transatlantic travel 

These aircraft previously flew with the budget carrier Norwegian, before it axed its entire long-haul operation to save itself from complete collapse. Yet, these aircraft are not the only connection to Norwegian, Norse Atlantic Airways has.  Three of the founders - Bjørn Tore Larsen, Bjorn Kljos and Bjørn Kise all held top jobs with Norwegian or OSM Aviation. A number of other key personnel are former Norwegian employees and the whole focus on being low-fare and low-cost, with lean management and administration teams, to operate long-haul flights, with high cabin utilization is pretty much how the former carrier started. 

More top stories you might be interested in.....

AerCap to Acquire GE Capital Aviation Services

AerCap Holdings, the global leader in aircraft leasing, announced today that it has entered into a definitive agreement with General Electric under which AerCap will acquire 100% of GE Capital Aviation Services ("GECAS"), a GE business.  

The combined company will be an industry leader across all areas of aviation leasing, with over 2,000 owned and managed aircraft, over 900 owned and managed engines, over 300 owned helicopters and approximately 300 customers around the world.

Aengus Kelly, Chief Executive Officer of AerCap, said, "We are excited about this opportunity to bring together two leaders in aviation leasing. AerCap and GECAS both have industry-leading teams, attractive portfolios, diversified customer bases and order books of the most in-demand new technology assets. This combination will enhance our ability to provide innovative and attractive solutions for our customers and will strengthen our cash flows, earnings and profitability.

AerCap's fourth quarter 2020 results

• Net income for the fourth quarter of 2020 was $28 million, or $0.22 per share. This was impacted by cash accounting and debt extinguishment costs of $117 million and $76 million, pre-tax, respectively.
• Cash flow from operating activities was $653 million, an increase of 21% from the third quarter of 2020.

Aengus Kelly, Chief Executive Officer of AerCap, said: "I am pleased to report further positive progress for the company in the fourth quarter. Our operating cash flows increased significantly, we ran a number of successful aircraft placement campaigns and we see a renewed enthusiasm from our customers. As the pace of vaccinations accelerates around the world, allowing governments to ease restrictions, we believe the strength of consumer demand will become more evident, driving further confidence in the sector."

2020 was a busy year for AerCap - purchasing, leasing and selling 179 aircraft

Aircraft leasing giant AerCap had a busy year during 2020 despite the global pandemic with transactions totalling around $8.3 Billion and purchasing, leasing and selling 179 aircraft.

Full Year 2020 Transactions

Signed financing transactions for approximately $8.3 billion.

Signed lease agreements for 97 aircraft.

Purchased 36 new aircraft.

Executed sale transactions for 46 aircraft.

Fourth Quarter 2020 Transactions

Signed financing transactions for approximately $2.8 billion.

Signed lease agreements for 31 aircraft, including 9 widebody aircraft and 22 narrowbody aircraft.

Purchased 18 aircraft, 

including:

12 Airbus A320neo Family aircraft, 

1 Boeing 787-9 and 

5 Embraer E2s.

Executed sale transactions for 12 aircraft, 

including: 

2 Airbus A320 Family aircraft, 

2 Boeing 737NGs, 

2 Boeing 737 Classics, 

2 Boeing 757s, 

3 Boeing 767-300ERs and 

1 Boeing 777-300

 from AerCap's owned portfolio.

AerCap posts nett loss for third quarter

The aircraft leasing giant AerCap Holdings has reported its latest results from the third quarter of 2020 ended September 30, 2020, showing a net loss of $850 million, compared to a net income of $270 million in the same period last year. 

Aengus Kelly, Chief Executive Officer of AerCap, said "While the aviation industry continues to face challenges, we are seeing a steady recovery in air travel and in AerCap's cash flows from the lows of April. The positive developments announced yesterday regarding the near-term availability for a Covid-19 vaccine, as well as the planned roll-out of rapid pre-departure testing, should provide a further boost to the industry. 

"Throughout this pandemic, AerCap has taken numerous proactive steps to manage through this environment, including executing over $12 billion of liquidity initiatives, which resulted in the company ending the quarter with our strongest ever liquidity position. As we look forward, we are confident that there will be significant attractive opportunities for AerCap to deploy its capital as the recovery continues. 

"We are seeing an acceleration of the pre-pandemic trend of airlines transitioning into new technology aircraft, of which AerCap is the largest owner in the world," continued Mr. Kelly. "We have reviewed each aircraft in our portfolio to ensure that our assumptions are reflective not only of conditions today, but, importantly, of those we believe are likely to prevail for the remaining useful life of each aircraft. After this comprehensive review of our entire fleet, in the third quarter we have taken a non-cash impairment charge that is focused primarily on current technology widebody aircraft." 

AerCap Signed Financing Transactions for approximately $2.2 billion and Leased, Purchased and Sold 44 Aircraft in the Third Quarter 2020

AerCap Holdings has announced its major business transactions during the third quarter of 2020:

Signed financing transactions for approximately $2.2 billion. Signed lease agreements for 28 aircraft, including 3 widebody aircraft and 25 narrowbody aircraft. Purchased 9 new aircraft, including 8 Airbus A320neo Family aircraft and 1 Boeing 787-9. Executed sale transactions for 7 owned aircraft, including 2 Airbus A320 Family aircraft, 1 Boeing 737NG, 1 Boeing 747, 2 Boeing 767s and 1 Boeing 777-200ER.  AerCap AerCap is the global leader in aircraft leasing with one of the most attractive order books in the industry. AerCap serves approximately 200 customers in approximately 80 countries with comprehensive fleet solutions. AerCap is listed on the New York Stock Exchange (AER) and has its headquarters in Dublin with offices in Shannon, Los Angeles, Singapore, Amsterdam, Shanghai, Abu Dhabi, Seattle and Toulouse.

Recommended for you...

AerCap Holdings publishes its financial results for the second quarter 2020

AerCap, one of the global leaders in commercial aircraft leasing with one of the biggest order books in the industry has released details of its financial results for the second quarter of 2020.

The firm that has approximately 200 customers in as many as 80 countries with offices in Dublin, Shannon, Los Angeles, Singapore, Amsterdam, Shanghai, Abu Dhabi, Seattle and Toulouse has reported a net income of $246 million for the second quarter of 2020 and $523 million for the first half of 2020. 

Highlights

• Approximately $12 billion sources of liquidity.
• 2.2x next 12 months' sources-to-uses coverage ratio, representing $6.4 billion of excess coverage.
• $3 billion of new financing raised in the second quarter of 2020.
• Approximately $27 billion of unencumbered assets.
• Adjusted debt/equity ratio of 2.5 to 1.
• Secured debt-to-total assets ratio of 23%.
• New technology aircraft comprise 59% of fleet.
• Average current lease expires in the fourth quarter of 2027.

"The Covid-19 pandemic continues to create significant challenges for the global aviation industry and for our airline customers," said Aengus Kelly, Chief Executive Officer of AerCap. "In response, we have maintained a record amount of liquidity and strong access to funding. We currently have $12 billion sources of liquidity, which is more than double our cash needs over the next 12 months. Since April, we have raised $3 billion of new funding, and have over $2 billion of additional funding initiatives in progress. With $27 billion of unencumbered assets, a record low leverage ratio of 2.5 to 1 and an unrivalled operating platform, we are well-positioned to weather an extended period of turbulence and support the recovery of the airline industry in the future."

AerCap, Air Transat and Airbus celebrating A321LR sustainable aviation fuel delivery flights

First delivery of an Airbus A321LR for Air Transat with sustainable aviation fuel (left to right): Damien Imbert, Head of Contracts Delivery, Airbus Hamburg; Capt. Manuel Chabot, Air Transat; Gunnar Gross, Project Leader Sustainable Air Fuel Airbus Hamburg; Jürgen Kuper, General Manager Air bp Continental Europe; Capt. Andrew Gordon, Air Transat; Ronny Stelter, Consultant Manager New Aircraft Acceptance and Delivery, AerCap Photo NW Group/Transat A.T. Inc.

The Canadian leisure carrier Air Transat is making its first two delivery flights today and tomorrow with its new jets fuelled by a kerosene blend containing 10% sustainable aviation fuel (SAF), a first for the Canadian carrier. 

It is also a first for the Airbus plant in Hamburg, Germany, which produces these aircraft, because until today delivery with SAF was offered only to Airbus customers at its plants in Toulouse, France, and Mobile, Alabama. The first aircraft took off at 2:04 p.m. (local time) from Hamburg Finkenwerder Airport (XFW) and will land at approximately 4:00 p.m. (local time) at Montreal–Trudeau International Airport (YUL). The second will depart the next day, Saturday, July 18.

"It is an honour for us and a sign of confidence from Airbus to be, together with AerCap, its first customer to take advantage of this new delivery option at its Hamburg plant," said Jean-François Lemay, President and General Manager, Air Transat. "This initiative is part of our commitment to reducing our own carbon footprint while contributing to the achievement of the airline industry's ambitious decarbonization targets."

AerCap Raised $3 Billion of Funding in the Second Quarter 2020

AerCap has announced its major business transactions during the second quarter 2020:

Raised funding of $3 billion, including $2.5 billion of unsecured bonds.
Purchased 2 new aircraft, 2 Airbus A320neo Family aircraft.
Executed sale transactions for 9 owned aircraft, including 3 Airbus A320 Family aircraft, 5 Boeing 737NGs and 1 Boeing 757.
Signed lease agreements for 10 aircraft, including 1 widebody aircraft and 9 narrowbody aircraft.

AerCap is the global leader in aircraft leasing with one of the most attractive order books in the industry. AerCap serves approximately 200 customers in approximately 80 countries with comprehensive fleet solutions. AerCap is listed on the New York Stock Exchange (AER) and has its headquarters in Dublin with offices in Shannon, Los Angeles, Singapore, Amsterdam, Shanghai, Abu Dhabi, Seattle and Toulouse.

Recommended for you...

AerCap Delivers New A321NEO-LR to Air Transat

Leasing giant AerCap Holdings has announced today that it has delivered a new Airbus A321LR on operating lease to Air Transat.AerCap is the world's largest Airbus A320neo Family lessor, with 325 aircraft owned and on order.

"We are very pleased to deliver to Air Transat a new A321LR," said Philip Scruggs, President and Chief Commercial Officer of AerCap. "The exceptional capabilities and economics of the A321LR will allow Air Transat to fly to its destinations with greater efficiency during these difficult times for airlines."

"The A321LR is the ideal new-generation aircraft for the transformation of our fleet and the relaunch of our air operations, which will resume on July 23," said Jean-François Lemay, President of Air Transat. "The arrival of our fourth A321LR allows us to become more efficient and provide a better experience for our customers, while taking an important step in the energy transition in air transportation."

Recommended for you...

Leasing giant AerCap delays delivery of 37 aircraft.

The global leasing giant AerCap Holdings has confirmed today that it has rescheduled the delivery of 37 aircraft that were previously expected to be delivered in 2021 and 2022. These aircraft are now expected to be delivered in 2023 and later years.

Working in concert with the aircraft manufacturers and our airline customers, AerCap has rescheduled the delivery of over 100 aircraft that were originally planned to be delivered in 2020, 2021 and 2022.

The rescheduling of these deliveries has reduced our cash capital expenditures in 2020 and 2021 by a total of approximately $4.7 billion. We currently expect to have cash capital expenditures of approximately $1.1 billion for the remainder of 2020 and approximately $2.5 billion for 2021. We expect our cash capital expenditures during these years to decrease further as we continue our discussions with the aircraft manufacturers and our customers. All of the aircraft delivering in 2020 and 2021 have already been placed on long-term leases.

"On our first quarter earnings call, I noted the positive trends that we were starting to see in Chinese air traffic. Similarly, since the low point in mid-April we have seen a steady increase in air traffic in Europe and the United States. As economies begin to reopen, our airline customers will play a vital role in the recovery of their respective countries," said Aengus Kelly, CEO of AerCap. "We have taken these steps to better align our delivery schedule with the needs of our airline customers and our OEM partners during this period of market dislocation. We expect to reschedule additional aircraft deliveries in the future as we continue to work with our customers and the manufacturers."

Recommended for you...

AerCap first quarter results 2020

The aircraft leasing giant AerCap has released its latest results which make interesting reading as the firm has managed to maintain a strong liquidy during the ongoing crisis that is affecting the global aviation industry.  

"The Covid-19 pandemic is creating significant challenges for the global aviation industry and for economies around the world. We would like to express our support for those directly affected by this illness and those whose jobs and businesses have been impacted," said Aengus Kelly, Chief Executive Officer of AerCap. 

The firm saw its net income increased by 18% to $276.8 million, from $234.2 million for the same period in 2019 and managed to achieve a 98% active lease rents through to 2022 already contracted. During the first quarter, it also experienced a 99% fleet utilization rate.  There are still concerns over the grounded Boeing 737 MAX aircraft,  with no clear date of when the aircraft will gain regulatory approval or under what special conditions they will be allowed to fly. The firm has 95 of the type on order with Boeing, but it is sure many of its Boeing 737 MAX leases have now been cancelled, furthermore, it fully expects additional leases to be cancelled in the future. In cases where leases have been cancelled, AerCap now has the right to cancel its corresponding orders for delivery of those aircraft from Boeing.  Nevertheless, those lease cancellations could have an adverse effect on future cash flows and results.   

AerCap leased, purchased and sold 53 aircraft during in the first quarter of 2020

Photo AerCap

AerCap Holdings has released details of its major business transactions during the first quarter of 2020. 

AerCap is the global leader in aircraft leasing with, as of March 31, 2020, 1,372 owned, managed or on order aircraft in its portfolio. 

Its highlights in the first quarter include:

Signed lease agreements for 28 aircraft, including 10 widebody aircraft and 18 narrowbody aircraft.

Purchased 7 aircraft, including 5 Airbus A320neo Family aircraft, 1 Boeing 787-9 and 1 Embraer E2.

Executed sale transactions for 18 aircraft, including 5 Airbus A320 Family aircraft, 6 Boeing 737NGs and 1 Boeing 747 from AerCap's owned portfolio and 1 Airbus A320 Family aircraft, 2 Airbus A330s, 2 Boeing B777-200ERs and 1 Boeing B777-300ER from AerCap's managed portfolio.

We continue to manage 5 aircraft that were sold from our owned portfolio during the quarter.

Signed financing transactions for approximately $350 million.

AerCap has one of the most attractive order books in the industry. AerCap serves approximately 200 customers in approximately 80 countries with comprehensive fleet solutions. AerCap has its headquarters in Dublin with offices in Shannon, Los Angeles, Singapore, Amsterdam, Shanghai, Abu Dhabi, Seattle and Toulouse.

Recommended for you...