John Higgins, president and chief commercial officer of Avolon, and Tom Ashe, chief operating officer of Avolon, both founding members of the company, will retire on Oct. 15. Effective July 26, Andy Cronin assumed the title of president of Avolon in addition to his role as CFO and Paul Geaney was appointed chief commercial officer.

“On behalf of the board and the entire Avolon team, I would like to thank John and Tom for the extraordinary contribution they have made to the company over the past 11 years. They have been central to the journey we have made from a startup in 2010 to being the world’s third largest aircraft lessor today,” Dómhnal Slattery, CEO of Avolon, said. “As COO, Tom Ashe has led Avolon’s operating and risk management activity from a zero start in 2010 to today’s balance sheet of over [$31 billion] in assets. This included the successful integration into Avolon of the CIT and HKAC lessor platforms.

“As CCO, John Higgins led our commercial interactions with the global airline community, the OEMs and the aircraft investor markets, which has seen Avolon acquire and trade over 1,300 aircraft since the business was launched. John also sat on Avolon’s board during the completion of a number of complex cross-border M&A transactions and the successful IPO of the company on the NYSE in 2014.

“Their contribution to our success can be measured not only in the financial and portfolio metrics of our business but also in the strength of the culture which we have built and the incredible pool of talent which we have nurtured and developed. Fortunately, their three decades of aircraft leasing experience and insights will not be lost to the business, as they will continue to be available to Avolon’s board and senior management on various projects over the coming years.

“I would also like to congratulate Andy Cronin on his appointment to the position of president of Avolon, a role that recognizes his integral part in Avolon’s growth and success. Our new chief commercial officer, Paul Geaney, brings a wealth of industry experience to his position and like Andy, he is one of the founder members of Avolon. The changes we announce today underline the strength and depth of Avolon’s senior management team.”

“We launched Avolon in 2010 on the back of huge ambition but never contemplating that within 10 years we would have built a top three global lessor,” Higgins said. “That achievement is testament to the potent combination of so many incredibly gifted and committed colleagues, the visionary and ambitious shareholders who have supported the business and a culture which promotes the collective over the individual. I am more optimistic and excited about Avolon’ s future now than I was when we first started. I wish Domhnal, Andy and Paul, the board and all of my colleagues continued success driven off hard work and innovation.”

“I am so proud of what Avolon has achieved since our foundation and to have been part of that incredible journey,” Ashe said. “I am so fortunate to have worked with so many remarkable colleagues and friends and I leave Avolon secure in the knowledge that its people remain its greatest strength. I have no doubt the energy, talent and ambition of this team will drive the business to achieve even more in the decades ahead. I wish Domhnal, Andy and Paul and all my Avolon friends every future success.”

Avolon also reported its Q2/21 results, noting that it recorded net income of $64 million for the three months ended June 30, 2021. In addition, Avolon delivered $610 million of lease revenue; generated $195 million of net cash from operating activities; reported total available liquidity of $6.6 billion at the end of the quarter, including $1.8 billion of unrestricted cash and $4.8 billion of undrawn debt facilities; and ended the quarter with a secured debt to total assets ratio of 22% and $17.3 billion of unencumbered assets. Rating agencies Moody’s and Fitch also improved Avolon’s credit outlook to stable in the quarter.

Q2/21 Financial Highlights

In terms of operating highlights, Avolon owned and managed a fleet of 581 aircraft at end of Q2/21, with total orders and commitments for 256 aircraft. The company also reported an average owned fleet age of 5.5 years with an average remaining lease term of 6.8 years.

During the quarter, Avolon executed a total of 48 lease transactions comprising new aircraft leases, follow-on leases and lease extensions. It also sold three aircraft in the quarter, entered into letters of intent for the sale of 12 aircraft, delivered a total of eight new aircraft to six customers and transitioned five aircraft to follow-on lessees. At the end of the quarter, Avolon had a total of 149 airline customers operating in 62 countries.

Avolon unveiled a zero emissions eVTOL aircraft order and became a launch customer for Vertical’s VA-X4 with a commitment for up to 500 electric aircraft valued at $2 billion through its Avolon-e affiliate. Avolon will join Microsoft, Rolls-Royce, Honeywell and American Airlines as equity investors in Vertical.

“We have passed the inflection point and the recovery in global aviation is underway. However, as we have guided previously, the recovery will be uneven across different regions and markets with the pace of vaccine roll-out being the springboard for the return to air travel,” Slattery said. “While we remain cautious, the scale of the increase in demand in the U.S. over the last quarter, and the pace of vaccination programs globally, underscores our confidence in a continuing recovery through the remainder of this year.

“Reflecting the recovery, many of the key operational and financial metrics within our business continued to trend positively during the second quarter. We are seeing increased aircraft demand, improved traffic levels and fewer airlines in restructuring processes. As we work through the second half of the year and see increased activity among our airline customers, our expectation is that the sector will be strongly positioned to perform in 2022.”