Air Lease Corporation placed its Airbus A320 aircraft, which was previously on lease with Kingfisher Airlines, at a lower rental rate that reflects current market conditions.
"We leased that airplane out at market rates today," said John Plueger, president and chief operating officer of Air Lease Corporation on a second quarter earnings call.
"Yes, the lease rate was lower, as we would expect, but it was in line, or actually towards the higher-end of the marketplace."
Plueger indicates the original A320 lease "was bought from another leasing company" when ALC first started, so it "was done at an earlier time."
The A320 was "successfully removed from Kingfisher without incurring a credit loss," says Plueger.
Steven Udvar-Házy, chairman and chief executive officer of ALC adds: "Keep in mind that all of our A320s that we have an order from Airbus have been placed on long-term leases."
ALC has "locked-in long-term lease relates that are above the current market rates because of our advanced placement capabilities," he says.