Macquarie AirFinance to acquire portfolio of 23 aircraft from ALAFCO

Macquarie AirFinance has agreed to acquire an additional portfolio of 23 aircraft from ALAFCO Aviation Lease and Finance Company K.S.C.P. (“ALAFCO”) for approximately $US1.1 billion.

The portfolio consists of predominantly new technology commercial passenger aircraft with an average age of approximately five years. The portfolio is currently leased to 10 airlines located in 9 countries. The transaction is in addition to Macquarie AirFinance’s existing agreement with ALAFCO  to purchase a diverse portfolio comprising 53 aircraft and an order book of 20 Boeing 737 MAX aircraft for approximately $US2.2 billion, and increases the total number of Aircraft that Macquarie AirFinance intends to acquire from ALAFCO to 76.

The acquisition of the further 23 aircraft will help facilitate the transition of Macquarie AirFinance’s fleet to newer technology, with the addition of more fuel-efficient models to lower the average carbon emissions intensity of its fleet.

Eamonn Bane, Chief Executive Officer of Macquarie AirFinance, said: “We are pleased to expand our collaboration with ALAFCO through the acquisition of this attractive portfolio of aircraft. 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, Chief Executive Officer of ALAFCO, said: “I wish Macquarie AirFinance every success with its strategy of furthering its continued business growth with the addition of this portfolio of 23 aircraft which underscores our confidence in Macquarie AirFinance. I also want to thank my ALAFCO colleagues, whose commitment to building an outstanding portfolio over the past three decades has enabled the success of the combined portfolio sale to Macquarie AirFinance. ALAFCO’s board of directors intend 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.”

Macquarie AirFinance is a leading provider of aircraft leasing and financing solutions. Following this transaction, its portfolio will include 240 aircraft leased to 87 airlines across 47 countries and a firm orderbook of 66 new technology Boeing and Airbus aircraft. With offices in Dublin, London, San Francisco and Singapore, Macquarie AirFinance is owned by Macquarie Asset Management, PGGM Infrastructure Fund and Australian Retirement Trust.

The transaction was approved by ALAFCO shareholders at an Extraordinary General Meeting on 19 February 2024. Completion of the transaction is expected in Q2 2024 following the satisfaction of customary closing conditions.