Avolon, the international aircraft leasing company, issues an update for the 2016 fourth quarter (‘Q4’) and full year. 2016 was a transformational year for Avolon which included the completion of its acquisition by Bohai Capital, its agreement to acquire the aircraft leasing business of CIT Group and the delivery of 74 aircraft. Avolon’s owned, managed and committed fleet grew 69% in 2016 to 435 aircraft by year-end. This fleet will effectively double again in 2017 on completion of the acquisition of the aircraft leasing business of CIT Group.

2016 Strategic Highlights

Announced a series of corporate transactions including:

  • Completion of US$7.6 billion acquisition by Bohai Capital and delisting from NYSE;
  • Integration of Hong Kong Aviation Capital (HKAC) into Avolon;
  • Acquisition of US$2 billion portfolio of 45 aircraft from GECAS;
  • Increased secured and unsecured committed debt facilities by a total of over US$2.4 billion; and
  • Agreement to acquire the CIT Group aircraft leasing business for US$10 billion.

Since the 2016 year-end, Avolon has made further progress towards the completion of the acquisition of the CIT Group aircraft leasing business including:

  • US$8.5 billion raised in capital markets to finance the acquisition of the CIT Group aircraft leasing business;
  • Receipt of corporate/issuer credit ratings from Fitch (BB), Moody’s (Ba3) and S&P Global (BB+); and
  • Appointment of three additional independent Directors to the Avolon Board.

2016 Full Year Highlights

  • 74 aircraft delivered and 35 aircraft sold in 2016.
  • Owned, managed and committed fleet increased by 69% year-on-year to 435 aircraft at the end of 2016.
  • Average age of owned fleet of 3.5 years and average remaining lease term of 7.3 years at the end of 2016.
  • Total customer base increased to 85 airlines in 40 countries by year-end.

2016 Fourth Quarter Highlights

  • 25 aircraft delivered and seven aircraft sold during the fourth quarter.
  • Letters of intent signed in Q4 for sale & lease back of further 13 aircraft including seven A320neo, two 737MAX and two A350 aircraft.

 

  Q4 2015   Q4 2016*   Change
Owned, managed & committed fleet (aircraft) 258 435 +69%
Owned & managed fleet (aircraft) 152 262 +72%

*Includes HKAC aircraft; does not include any aircraft to be acquired from CIT Group

-END-

About Avolon

Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is a wholly-owned, indirect subsidiary of Bohai Capital Holding Co., Ltd., a Chinese public company listed on the Shenzhen Stock Exchange. On 6 October, 2016, Avolon announced an agreement to acquire the aircraft leasing business of CIT Group which will create a leading aircraft leasing business with an owned, managed and committed fleet, on a pro forma basis as of 30 September, 2016 of 868 aircraft valued at over US$43 billion.

Website: www.avolon.aero Twitter: @avolon_aero

Note Regarding Forward-Looking Statements

This document includes forward-looking statements, beliefs or opinions, including statements with respect to Avolon’s business, financial condition, results of operations and plans. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond our control and all of which are based on our management’s current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as “believe,” “expects,” “may,” “will,” “could,” “should,” “shall,” “risk,” “intends,” “estimates,” “aims,” “plans,” “predicts,” “continues,” “assumes,” “positioned” or “anticipates” or the negative thereof, other variations thereon or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements may and often do differ materially from actual results. No assurance can be given that such future results will be achieved.