Macquarie AirFinance expands fleet with $1bn aircraft deal from Alafco

Aircraft lessor Macquarie AirFinance has added a portfolio of 23 aircraft worth over a billion dollars to its assets.

Macquarie AirFinance said it has acquired the additional portfolio from Alafco Aviation Lease and Finance for around $1.1bn (€1bn).

The portfolio, leased to 10 airlines located in 9 countries, mainly consists of new technology commercial passenger aircraft with an average age of approximately five years, Macquarie AirFinance said.

The latest acquisition expands Macquarie AirFinance’s existing agreement with Alafco which initially involved the former’s acquisition of a portfolio comprising 53 aircraft and an order book of 20 Boeing 737 MAX aircraft for around $2.2bn from the Kuwaiti leasing and financing firm.

The initial deal, announced in January last year was backed by Macquarie AirFinance shareholders, Macquarie Asset Management, PGGM Infrastructure Fund and Australia Retirement Trust with a contribution of up to $600m.

Following the latest transaction, Macquarie AirFinance’s portfolio will include 240 aircraft leased to 87 airlines across 47 countries and a firm order book of 66 new technology Boeing and Airbus aircraft.

Eamonn Bane, CEO of Macquarie AirFinance, said: “The aviation sector’s strong recovery has continued, with domestic and international travel rebounding from pandemic lows in key markets.

”As we prepare for the future, the addition of these aircraft to our portfolio further enhances the scale and age of our fleet while helping ensure we can meet the growing demand of our partner airlines for more efficient aircraft.”

Adel Albanwan, CEO of Alafco, said: “Alafco’s board of directors intends to explore alternatives for the future of its global aviation business after completing all the procedures for selling the remaining aircraft in the company portfolio.”

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