Goshawk has entered a deal to buy Sky Aviation Leasing International (SALI), the core unit of Dublin-based Sky Aviation Leasing International LP (SKY Leasing).
The deal will bring Dublin-based Goshawk’s fleet to 183 aircraft with a total value of $9.1 billion, says Goshawk parent NWS Holdings. Goshawk is a 50:50 joint venture between NWS and Chow Tai Fook Enterprises.
SALI has 51 “owned and committed aircraft”, and is worth about $3 billion, says Goshawk. The deal is subject to regulatory approvals and is expected to close in the third quarter of 2018.
In January, several sources confirmed to FlightGlobal that SKY Leasing was poised to begin a sale process.
“The acquisition will accelerate Goshawk’s growth and boost its position to become one of the top 10 players in the global aircraft leasing market,” says Goshawk executive director Brian Cheng.
“With an enlarged fleet, a balanced customer base and geographical spread operating through a proven business model, Goshawk will be able to tap wider and deeper into the aircraft leasing market on the back of rising air traffic demand.”
The SALI deal will add 17 new lessees and six new countries into Goshawk’s portfolio. The combined fleet, composed 77% of narrowbodies, will have an average age of three years, with 65 airline lessees in 35 countries. The average remaining lease term for the 183 aircraft is 7.7 years.
SKY Leasing’s owners, Canada’s Public Sector Pension Investment Board and ATL Partners, add that after the SALI deal goes through, they will continue to own SKY, which through US-based entities will continue to service aircraft owned by various securitisation vehicles.
“I want to thank the team at SALI for having done an outstanding job in building SKY Leasing as a leading full-service aircraft lessor,” says SKY Leasing chief executive Richard Wiley.
“The key to our aircraft fleet growth has been the important airline relationships in combination with the long-term support of leading financial institutions. I have also enjoyed working with our shareholders, ATL and PSP, who have helped us build this business together.”
Morgan Stanley was exclusive financial adviser for the deal.