ORIX Confirms Acquisition of 30% Stake in Avolon Holdings



ORIX Aviation Systems signed an agreement to acquire 30% of the outstanding shares of Ireland-based Avolon Holdings Limited, a global aircraft leasing company.

The acquisition is expected to be completed after the necessary approvals and/or licenses are obtained.

ORIX entered into the aircraft finance lease business in 1978 and has accumulated aviation experience and knowledge over the past 40 years. In 1991, it established ORIX Aviation in Ireland to get a foothold in the aircraft operating lease business. Since formation, ORIX Aviation has grown to be a major aircraft lessor, asset manager and trading company.
In addition to the leasing of its own portfolio aircraft, it has
developed a unique asset management platform that attracts both domestic
Japanese and international investors, and is the only S&P ranked aircraft lease servicer worldwide with $10 billion of aircraft assets under management. ORIX Aviation currently owns and manages more than 200 aircraft and leases them to more than 70 airlines located in more than 30 countries. ORIX Aviation is headquartered in Dublin with an office in Hong Kong.

Avolon is a global aircraft leasing company focused on acquiring, managing, leasing and selling commercial aircraft. Avolon is headquartered in Ireland, with offices in the U.S., the
United Arab Emirates, Singapore, Hong Kong and China. In May 2010, Avolon was launched by an experienced team of aircraft leasing and financing professionals, and operated as a private company until the initial public offering of the business in December 2014. Avolon operated as a public company listed on the New York Stock Exchange before being acquired by Bohai in January 2016.

Subsequently, Avolon became the core aircraft leasing brand for Bohai and its parent, HNA Group. In April 2017, Avolon acquired all of the issued and outstanding equity interest of C2, the commercial aircraft leasing business of CIT Group.

Avolon focuses on acquiring and maintaining a portfolio of young, modern, fuel efficient commercial aircraft while seeking to maximize long-term earnings growth and cash flow generation and drive attractive risk adjusted returns through the aviation industry cycle. The business is operated on a global basis, maintaining a diverse fleet of aircraft provided to airlines across different geographic regions. As of June 30, 2018, Avolon’s owned managed and committed portfolio consisted of 890 aircraft, including 532 owned aircraft, 30 managed aircraft and 328 committed aircraft.

According to Boeing’s Commercial Market Outlook for 2018-2037, the worldwide demand for aircraft is projected to increase due
to the rise in LCCs and the increase in global passenger traffic also in line with the rapid economic growth of markets, in particular
emerging markets. The number of the worldwide commercial aircraft fleet is expected to rise from 24,400 in 2017 to 48,540 in 2037, and passenger traffic is expected to grow by an average of 4.7% per year.


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