Rob Morris, Head of Consultancy, looks at consolidation among lessors and the growth of the sector.
The recent closure of the acquisition of CIT by Avolon instantly created the world’s third largest operating lessor. From a standing start in May 2010 and initial capital of $1.4 billion provided by four institutional investors, Avolon has been through a merger and acquisition journey which has seen several changes of ownership, both public and private.
Today, it has an owned and managed portfolio of around 550 single- and twin-aisle passenger jets, worth in excess of $19 billion, according to Flight Ascend Consultancy’s Current Market Values. Continued growth is assured, with more than 250 aircraft on firm order backlog, including Neo variants of the Airbus A320, A321 and A330, together with the A350, Boeing 737 Max and 787, all scheduled for delivery through 2023.