Air Lease Corporation (NYSE: AL) announced an agreement to sell 25 of its Embraer E190 and E175 aircraft in its fleet to Nordic Aviation Capital A/S (“NAC”).
These Embraer aircraft have served ALC’s customers well, fulfilling regional passenger traffic demand. Over the past six years, ALC’s business has matured and has focused on mainline jet aircraft operations for its airline customers. NAC is a global leader specializing in meeting the needs of regional aircraft operators and this transaction adds further scale to its business. These 25 Embraer aircraft account for less than 10% of ALC’s current fleet. Transfers of these aircraft to NAC will begin this quarter and are expected to conclude in Q1 of 2017. As the aircraft are moved, ALC expects to use some of this capital to add incremental aircraft acquisitions as market conditions permit.
“We are pleased to have reached attractive terms on another win-win transaction with NAC,” said Steven F. Udvar-Házy, Chairman and Chief Executive Officer of Air Lease Corporation. “After our teams successfully worked together on the ATR aircraft portfolio transaction, NAC saw additional value in our fleet of Embraer aircraft. This transaction is another great result for ALC shareholders as we continue to demonstrate the value creation of our leasing platform. The regional jet business has been very successful for ALC and the timing is now appropriate for us to have a smaller role in this market segment and to refocus our resources on growing our main line jet fleet.”
“We are delighted to be expanding our relationship with ALC. We are also happy to be growing our Embraer fleet, but most importantly we are looking forward to expanding our relationship with key clients and adding several new clients,” said Martin Møller, Chairman of Nordic Aviation Capital A/S.