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Air Lease not considering airline portfolio deals

Air Lease does not plan on buying any airline-owned aircraft portfolios, citing concentration risk concerns.

This includes portfolios owned by AirAsia's leasing unit Asia Aviation Capital, Lion Air's Transportation Partners and Norwegian's Arctic Aviation Assets, said Steven Udvar-Hazy, chairman of ALC, during a quarterly earnings call on 3 August.

"We're really not looking at buying entire portfolios from those players, because of the concentration issue," he says.

Asia Aviation Capital owns 74 Airbus A320s operated by AirAsia subsidiaries with the exception of two at Pakistan International Airlines, the Flight Fleets Analyzer shows.

Transportation Partners owns 46 aircraft, including 32 ATR 72s, two Boeing 737-800s, 12 737-900ERs, at Lion Air, its subsidiaries and one at Azul, the database shows.

Arctic Aviation Assets owns 19 aircraft, including two A320neos, 14 737-800s, two 737 Max 8s and one Boeing 787-9, all operated by Norwegian except the A320neos at Hong Kong Express, Fleets Analyzer shows.

"We looked at the AirAsia portfolio," says Udvar-Hazy, adding that, while ALC will not be considering any airline portfolio acquisitions, it will consider acquiring certain aircraft from these pools.

"We would certainly entertain opportunistic situations where we could acquire a cluster of assets at attractive rates," he says.

AirAsia chief executive Aireen Omar told Japanese media in July that they expected to close a sale of Asia Aviation Capital by the end of the year. He did not provide additional details of a possible deal, including whether or not the Malaysian carrier would consider splitting up the portfolio.

ALC acquired six used aircraft in the second quarter, executives say.

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