Last week Avolon released its Quarter 2 business update. Avolon is headquartered in Ireland and has offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services and is 70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a public company listed on the Shenzhen Stock Exchange and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges.
In Q2 Avolon carried out 31 lease transactions comprising new aircraft leases, follow-on leases and lease extensions and entered into letters of intent for the sale and leaseback of 9 aircraft. As recently reported in Flying In Ireland, it confirmed an order for 40 Boeing 737 MAX aircraft and agreed to order 20 Airbus A330neo aircraft. It also delivered 5 new aircraft and transitioned 13 aircraft to a total of 10 customers and in addition sold 3 aircraft and executed sale agreements for a further 17 aircraft. Avolon 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 new aircraft.
During this quarter Fitch improved Avolon’s BBB- rating outlook from Stable to Positive and the company raised US$3.4 billion of debt capital including US$1.7 billion Term Loan B refinancing with a new loan maturing in 2028 and a letter of intent for a US$950 million term financing facility maturing in 2030. Avolon has recently published its 2023 World Fleet Forecast, Return to Growth, which predicts that the global commercial aircraft fleet will almost double to 46,880 aircraft in 2042.
