Aviation news analysis
50 SKY SHADES - World aviation news

Boeing Co Airbus Group — Possible Choices for Aircastle’s 10 Jet Order

Download: Printable PDF Date: 18 May 2016 12:57 category:
Boeing Co Airbus Group — Possible Choices for Aircastle’s 10 Jet Order - Manufacturer publisher
Krista Kuznecova
Aircraft: Airplanes
Source: Bidness ETC

Aircastle Limited, a company that acquires and leases commercial aircraft, along with its Japanese partner is looking to acquire and lease as many as 10 new jets. Among various contenders, Boeing Co. and Airbus seem to have the lead. Aircastle seems inclined toward single-aisle commercial aircraft to cater to its growing demand among airlines. The company is willing to invest as much as $400 million to acquire 10 jets. The deal would be supported through its partner IBJ Leasing Co. — an affiliate of Mizuho Financial Group Inc.

The order will add value to the chosen manufacturer’s order book. Both Boeing and Airbus Group SE (OTCMKTS:EADSY) are likely to go head to head for the order. Aircastle will offer the leased aircraft to Asian airlines that continue to witness a strong travel demand.

The aircraft-leasing company's fleet currently stands at 153 jets. The company will purchase the aircraft at discounted prices and lease back the jets for commercial use. This would also pose an opportunity for budget Asian airlines to expand their fleet and capitalize on the growing market in the region. Of the total 153 jets, its fleet has 111 narrow-body jets, 31 wide-body jets, and 11 freighter jets, as of March 31, 2016. Based on their net book value, narrow-body jets contribute 45%, while wide-body jets contribute 44% to the total value.

Aircastle is mainly active in Europe with 56 jets operating in the region. The Asia-Pacific region comes in second with 45 jets. However, in terms of net book value, Asia-Pacific region's total contribution is 38%, while Europe comes in second with 25%.

It has enjoyed a healthy growth in lease and rental revenue over the past few quarters. In the first quarter 2016, the company reported $183 million in lease revenue, up from $178 million reported in the same quarter last year.

The consolidated revenues declined 5% year-over-year (YoY) due to a decline in maintenance revenue. The company is likely to report growth in the coming quarters after the acquisition of 10 new jets. The acquisition may also offset the likely decline caused by lease expiration on other jets.

Loading comments for Boeing Co Airbus Group — Possible Choices for Aircastle’s 10 Jet Order...


Boeing, Safran Joint Venture to Start Operations

Boeing and Safran secure regulatory approvals to begin their joint venture for designing, building and servicing Auxiliary Power Units Boeing and Safran have received regulatory approvals for...

Arkia Israeli Airlines takes delivery of world’s first A321LR

Arkia Israeli Airlines takes delivery of world’s first A321LR Tel Aviv based ARKIA Israeli Airlines which is majority owned by Jordache Enterprises, has taken delivery of its first A321LR bec...

Guardian Flight Strengthens Its Rural Air Medical Outreach in Alaska, Hawaii, Utah

Guardian Flight has recently strengthened the reach and focus of its air medical transport footprints in Alaska, Hawaii, and Utah with additional dedicated and medically equipped fixed wing aircr...

Leonardo awarded contract for 22 of the new AW169M helicopter variant by Italy's Guardia di Finanza

Contract for 22 AW169Ms in dedicated configuration with support and training package valued at 280 million euro with deliveries between summer 2019 and 2024.  Complements a fleet of 14 AW139...

MENA Aerospace Participates at Bahrain International Airshow 2018 with New Partner Frequentis

Frequentis to pursue defence information and communications opportunities with MENA Aerospace in Bahrain. Strategic partners InterTec and  IJM also attending, with further new agreements...