PIMCO and GE Capital Aviation Services (GECAS) have teamed up to create a $3bn (€2.5bn) aviation leasing platform.
In a joint statement, the companies said the newly created investment platform, which is subject to approvals, will provide much-needed financing for airlines which are looking to upgrade their fleets with young and new aircraft.
The venture will initially focus on narrowbody aircraft while allowing flexibility to invest in attractive opportunities in the widebody market.
PIMCO and GECAS will consider a range of investment criteria including an airline’s assets and credit quality and also geographic factors, the companies said.
GECAS will source transactions for the platform, act as servicer and provide asset management services for the platform.
Dan Ivascyn, PIMCO CIO, said: “As the airline industry struggles with the effects of the COVID-19 pandemic, the PIMCO-GECAS platform will inject essential liquidity into this critical industry by providing financing solutions at a time when there are fewer traditional financing options for airlines.
“Aircraft remain an attractive asset class in a critical infrastructure sector supported by solid long-term growth drivers. GECAS’ expertise as a world-class aircraft lessor aligns with our longstanding investment strategy in aviation finance.”
Greg Conlon, president and CEO of GECAS, said: “We are delighted to team up with a premier institutional investor such as PIMCO in this strategic relationship which will enable opportunistic plays to support our airline customers around the globe.
“While GECAS maintains an industry-leading position, this platform will ensure we can continue providing our airline customers with the aircraft needed to sustain their franchises.”
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