MEDIA RELEASE PR40393
Hong Kong Aviation Capital to Acquire Three (3) New A320 Aircraft Under Sale-Leaseback to Indigo in
First Major Deal Since Buying Allco Aviation
SYDNEY, Australia, July 12 /Medianet International-AsiaNet/ --
Total transaction for seven (7) A320s.
HKAC completes US$ 200 million transaction to expand its
operating lease portfolio
Hong Kong Aviation Capital ("HKAC"), a leading investor in the global aviation sector, today announced
new leases of three (3) new Airbus 320 aircraft to IndiGo Airlines of India. The leases will start on delivery of
the aircraft new from Airbus to IndiGo in 2011. In addition, HKAC announced the agreement by IndiGo to
extend the leases of four (4) existing A320 aircraft.
The three (3) new A320s will be delivered at manufacturer list prices totaling approximately US$ 200 million,
and will be on lease to the airline for a period of six (6) years. HKAC is closing the purchase of the new
aircraft with support from significant Chinese banking and financial institutions. Upon delivery of the new
aircraft, HKAC will have a total of ten (10) A320s on lease to IndiGo. The transaction expands its existing 68
aircraft portfolio with assets totaling approximately US$ 3 billion.
HKAC is an Aviation leasing and investment company that includes HNA Group Co., Ltd., China and an
affiliate of Bravia Capital, New York as shareholders.
Following the successful acquisition of the Allco aviation portfolio in January 2010, HKAC has transitioned
the existing fleet and management, brought on key senior hires, and adopted a new business plan, to leverage
its significant capital position by providing liquidity to operators with a target of growing the business to a top 5
operating lessor.
Mr. Mathis Shinnick, CEO of Hong Kong Aviation Capital said: "The announcement of this deal, coming so
quickly after the transition of HKAC's business model, demonstrates HKAC's strong ambitions in the aircraft
leasing business and is an important step in the company's continued development and global expansion."
"We are delighted to have completed yet another transaction with IndiGo as one of their largest lessors.
With the completion of this deal, HKAC will have ten (10) aircraft on lease to Indigo, demonstrating our
commitment to the airline," Mr. Shinnick said.
"This transaction demonstrates our belief in the business model of IndiGo and its continued success. We
believe IndiGo is a very well-run airline in India, as evidenced by its proven profitability, strong operating
metrics, and balance sheet stability. We believe this deal will be very positive for HKAC, its shareholders, and
the airline," he said.
"HKAC plans to continue expanding our global presence and building our fleet by actively seeking business
with top-tier lessees across the world," he said.
Mr. Bharat Bhise, CEO of Bravia Capital Partners said: "We are extremely optimistic about the Indian
aviation market. Following the 2008 downturn, India has seen one of the strongest rebounds globally and
current demand levels and load factors are the highest ever. IndiGo has set the standard for the LCC space in
India by profitably running an airline despite daunting hurdles of high costs primarily as a result of poor
infrastructure."
"In the next year IndiGo will add 18 more aircraft over their current base increasing their market share of the
Indian market from 11.7% in 2008 to almost 16% today. As a shareholder of HKAC, we are pleased by the
announcement of this transaction and look forward to the company completing more transactions in India and
globally," Mr. Bhise said.
About Hong Kong Aviation Capital
Hong Kong Aviation Capital is one of the largest global aircraft operating lessors. The firm currently
manages a portfolio of 68 aircraft worth approximately US$ 3 billion. In addition, HKAC invests in aviation
financial instruments and provides aircraft management services. For more information, please see:
About HNA Group
HNA Group is a $ 22 billion conglomerate with investments in diverse industries including air transportation,
shipping, logistics, hotels, financial services, retail and real estate. Since inception, HNA Group has been
nominated as a Fortune 500 Enterprise of China for 6 consecutive years. For more information please see
About Bravia
Bravia Capital is a leading investor and advisor in the transportation (including aviation and shipping),
logistics, and related growth industries. The team at Bravia has a long history of achievement in investment
management and structuring complex financial instruments. For more information, please see:
For more information please contact:
Nic Jarvis,
Edelman,
+614 14 414 484 or
nic.jarvis@edelman.com
Jen McCloy,
Edelman,
+614 31 562 326 or
jennifer.mccloy@edelman.com
SOURCE: Hong Kong Aviation Capital
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