BUSINESS AVIATION

KKR Introduces AV AirFinance, A New Commercial Aviation Lending Platform

KKR, AV AirFinance | June 14, 2021

KKR, a global investment firm, announced AV AirFinance Limited, a global commercial aviation loan servicer founded by a team of seasoned industry professionals in collaboration with KKR. The new secured loan servicing platform includes stable, long-term capital with decades of experience structuring commercial aircraft loan transactions to provide unique and innovative financing options to commercial aviation clients worldwide.

KKR and AV AirFinance have agreed to buy a nearly $800 million portfolio of aviation loans from CIT Group to assist with the launch, which includes more than 50 loans for around 60 commercial aircraft. These loans in the portfolio have an average yield in the mid-single digits and a remaining duration of four years.

Chief Executive Officer Siggi Kristinsson leads AV AirFinance. He is an industry veteran who most recently co-founded and served as CEO of Volito Aviation Services AB. This firm provides debt origination and consulting services to Goldman Sachs and other financial institutions. Mr. Kristinsson is assisted by a seasoned team of aviation financing experts with decades of expertise in secured lending totaling more than $25 billion in value through many market cycles. Ryan Jasinski joins AV AirFinance from CIT as part of the associated portfolio acquisition and will continue to focus on loan origination in the Americas. Per Waldelof, former president of PK AirFinance, works as a consultant for AV AirFinance, assisting loan origination and other elements of the company's operations.

AV AirFinance will provide services to diverse commercial clients, including airlines, cargo operators, lessors, manufacturers, and investors, throughout the ownership cycle, including PDP, acquisition, leasing, conversion, and tear down. AV AirFinance offers worldwide origination skills and the financial capability to arrange longer-term, flexible, and competitive financing for a wide variety of single aircraft and extensive portfolio deals through its partnership with KKR.

Separate accounts controlled by KKR are funding the portfolio acquisition from CIT. AV AirFinance is KKR's latest aviation investment, following previous Altitude Aviation, Altavair, KKR DVB Aviation Capital, K2 Aviation, DCAL Aviation, Wheels Up, Global Jet Capital, and JetEdge.

About KKR
KKR is a global investment firm that specializes in alternative asset management, capital markets, and insurance solutions. KKR seeks to achieve excellent investment returns by using a patient and disciplined approach to investing, employing world-class people, and fostering growth in its portfolio businesses and communities. KKR manages hedge funds and sponsors investment funds in private equity, credit, and real estate. The Global Atlantic Financial Group operates KKR's insurance companies, including retirement, life, and reinsurance products. References to KKR's investments might consist of the activities of its sponsored funds and insurance subsidiaries.

About AV AirFinance Limited
AV AirFinance Limited is a commercial aviation loan servicer founded in collaboration with KKR. Airlines, lessors, manufacturers, and investors can all benefit from AV AirFinance's secured financing solutions. AV AirFinance's team has decades of expertise structuring commercial aircraft loans. Due to its partnership with KKR, it has the financial strength and capacity to provide competitive financing and the knowledge to engage in the worldwide commercial aviation lending space effectively. AV AirFinance has offices in Ireland and the United States.

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Adverse weather conditions, strikes, political reasons, and other different causes can impact the long-term success of an airline. An effective Disruption Management System can predict the occurrence of these events and assist by reducing the impact on the operations.


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DEFENSE AND SPACE

Boeing to Open Japan Research Center and Expand Sustainability Partnerships

Boeing | August 01, 2022

Boeing will strengthen its partnership with Japan by opening a new Boeing Research and Technology center. The facility will focus on sustainability and support a newly expanded cooperation agreement with Japan's Ministry of Economy, Trade and Industry. Boeing and METI have agreed to broaden their 2019 Cooperation Agreement to now include a focus on sustainable aviation fuels electric and hydrogen powertrain technologies, and future flight concepts that will promote zero climate impact aviation. That is in addition to exploring electric and hybrid-electric propulsion, batteries, and composite manufacturing that will enable new forms of urban mobility. "We are excited to open our latest global research and technology center here in Japan. Working with terrific partners like METI, the new center will expand upon Boeing-wide initiatives in sustainable fuels and electrification, and explore the intersection of digitization, automation and high-performance aerospace composites for greater sustainability in our future products and production systems." said Greg Hyslop, Boeing chief engineer and executive vice president of Engineering, Test & Technology The BR&T – Japan Research Center will be located in Nagoya, which is already home to many of Boeing's major industrial partners and suppliers. The facility will further expand Boeing's research and development footprint in the region, which includes centers in Australia, China and Korea. Boeing is fully committed to supporting Japan's SAF industry and has been accepted as the latest member of ACT FOR SKY, a voluntary organization of 16 companies that works to commercialize, promote and expand the use of SAF produced in Japan. It was founded by Boeing airline customers All Nippon Airways (ANA) and Japan Airlines (JAL), along with global engineering company JGC Holdings Corporation, and biofuel producer Revo International. Masahiro Aika, representative of ACT FOR SKY, said, "ACT FOR SKY welcomes the participation of Boeing. We look forward to Boeing collaborating with the other members to "ACT" for the commercialization, promotion and expansion of SAF in Japan." In addition to becoming partners in ACT FOR SKY, Boeing has a long history of innovating with ANA and JAL on sustainable aviation, which includes pioneering SAF-powered flights and launching the ground-breaking 787 Dreamliner. Today, they signed agreements to work together to study advanced sustainable technologies, including electric, hybrid, hydrogen and other novel propulsion systems in an endeavor to reduce the carbon footprint of aircraft. Boeing Chief Sustainability Officer Chris Raymond added, "To ensure the enormous societal benefits of aviation remain available for generations to come, we must continue to partner with capable innovators and leaders to support the industry's commitment to net zero carbon emissions by 2050. We are humbled to join ACT FOR SKY and collaborate with other members to share global best practices and help with the scale up and demand of SAF in Japan. And we are honored to open the Japan Research Center and expand our work with airline customers ANA and JAL on advanced technologies to realize zero climate impact aviation." As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing's diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company's core values of safety, quality and integrity.

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AIR TRANSPORT, BUSINESS AVIATION

Dominican Republic’s New Flagship Airline Arajet Takes Off

Arajet | September 20, 2022

Arajet, the Dominican Republic's new low-fare airline, officially launched operations in the Caribbean skies, leading the rebirth of the Dominican aviation with a powerful connecting hub in Santo Domingo. Arajet will build a robust route network of 22 destinations in 12 countries in the upcoming months, proudly carrying the Dominican flag, and providing a customer-oriented service across the continent.After two days of successful operations on September 15th and 16th with flights to Barranquilla and Cali in Colombia and to Aruba, Arajet marked its first official flight to San Salvador in El Salvador, in an event hosted by Mr. Luis Abinader, President of the Dominican Republic, and Mrs. Morena Valdez, Minister of Tourism of El Salvador. We celebrate the launch of Arajet as our newest national carrier. Our government will continue supporting Arajet and the overall aeronautical industry to assure its competitiveness and create an air hub that promotes tourism, trade and cultural exchange, and provides an opportunity for all Dominicans abroad to visit their country at affordable prices,” said President Abinader. "Low-Fare business model and designation as a national carrier for the Dominican Republic will attract more tourists, increase connectivity, and offer Dominicans the opportunity to travel at lower fares, aboard new aircraft with the highest standards of safety and distinctive warm Dominican customer service." Víctor Pacheco Méndez, CEO of Arajet We are excited to commence operations and provide Dominicans and all our guests with low fares, world class customer experience and a new growing network from and to Santo Domingo to major cities in The Americas,” expressed Mr. Pacheco. “Our mission is to build services for our guests by utilizing state-of-the art aircraft fleet with the latest technology, to strengthen and facilitate the country’s connection to the world, while promoting domestic tourism internationally. Arajet will continue expanding its operations later this month with the addition of routes to Saint Maarten in the Caribbean, Lima in Peru, Mexico City, Monterrey and Cancun in Mexico and Guatemala City in Guatemala. In October, Arajet will add Curaçao, San José in Costa Rica, Quito and Guayaquil in Ecuador, Medellín and Bogotá in Colombia as well as destinations in North America. From the perspective of the government of President Nayib Bukele, air connectivity is key to boost tourism, making it easier for travelers to move between countries and discover the wide range of options offered by El Salvador: from the permanent consistency of its surfing waves, its imposing volcanoes, and towns and cities with great historical value,” said Mrs. Morena Valdez, Minister of Tourism of El Salvador. In the next 5 years Arajet plans to transport more than 7 million passengers, generating more than 4,000 direct and close to 40,000 indirect jobs in the region. With Arajet’s launch our country will begin to feel the impact the airline will have in the Dominican Republic. Arajet will contribute to the growth of the tourism industry and attract more visitors from new destinations so we can continue reaching record numbers in tourist arrivals and diversify the nationality of our visitors with fair rates that connect Santo Domingo with the continent. We reaffirm our commitment, assumed jointly with the Tourism Cabinet led by President Abinader, to strengthen public policies related to the tourism and the aeronautical sector to promote its development, said Tourism Minister David Collado. Arajet has already received 5 of 8 direct leases of new Boeing 737 MAX aircraft, and has a direct order for 20 new Boeing 737 MAX. The carrier will continue to grow and invest in its fleet with 15 additional options to be delivered over the next 5 years. The 737 MAX family of airplanes is well suited to Arajet’s network with the 737-8 enabling profitable new routes and the 737-8-200 providing unrivalled efficiencies,” said Ihssane Mounir, Boeing senior vice president of Commercial Sales and Marketing. “The flexibility of the 737 MAX ensures Arajet can meet its goal of making flying more affordable and accessible across the Caribbean and beyond, with safe, sustainable and reliable service. Arajet enters the market as the newest Low-Cost Carrier in the region, strategically supported by experienced global aviation investors Bain Capital and Griffin Global Asset Management to consolidate as a world-class airline for the Dominican Republic and the Caribbean. “By working closely with our investors as well as with our strategic partner and leading global aerospace company Boeing, we are well-positioned for operational success and to provide Dominicans and international visitors with flights at affordable prices that connect the country with key destinations in the American continent and the Caribbean,” added Pacheco. Arajet’s ultra-quiet and fuel-efficient CFM LEAP-1B engines reduce noise pollution and allow the airline to save on operational costs that support low fares so everyone can fly and easily book at Arajet.com We have prepared for years to efficiently and conveniently connect the Dominican Republic with key international markets. We are assuming the responsibility of the rebirth of the Dominican aviation as the new national carrier with an experienced international team that will ensure our operations meet the highest safety standards and customer service for our guests, Mr. Pacheco concluded.

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AVIATION TECHNOLOGY

Leidos to acquire Cobham Aviation Services Australia's Special Mission business

Leidos | August 03, 2022

Leidos a FORTUNE® 500 science and technology leader, announced it has entered into a definitive agreement with Cobham Limited to acquire Cobham Aviation Services Australia's Special Mission business. The Special Mission business provides airborne border surveillance and search and rescue services to the Australian Federal Government. The acquisition is subject to customary closing conditions, including regulatory approvals. "Cobham's Special Mission team conducts essential operations that protect Australia's borders, support law enforcement and environmental protection and save lives. The integration of Special Mission into Leidos Australia will expand the scope of our global airborne ISR capabilities, diversify revenues, and open up new growth avenues." Leidos Chairman and CEO Roger Krone "I have the greatest respect and admiration for Cobham's Special Mission team and their performance in service to the Government," said Leidos Australia Chief Executive Paul Chase. "The addition of the Special Mission business will bring new, expansive services to our offerings across Australia. I look forward to working with this exceptional team." "This is a perfect match," said Cobham Aviation Services Chairman Kim Gillis. "Leidos has remarkably complementary operations to Cobham Special Mission in airborne ISR, as well as deep platform integration expertise, and both organisations uphold exceptional track records of delivering mission critical services to government and defence customers." "I'd like to recognise and thank all of the Special Mission team for their continued dedication and commitment to delivering operational outcomes for our customers," Managing Director of Special Mission James Woodhams said. "I'm really excited about what the future holds for the team as part of Leidos." Cobham Special Mission owns and operates 14 modified aircraft to deliver critical services across Australia, including Conducting one of the world's largest outsourced civil maritime surveillance operations under contract with the Australian Border Force, patrolling Australia's 8.2 million square kilometre Exclusive Economic Zone; Providing fixed wing search-and-rescue response capability over land and sea on behalf of the Australian Maritime Safety Authority (AMSA); and Operating a highly specialised mission aircrew training system for more than 30 mission aircrew per year. About Leidos Leidos is a Fortune 500® technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, civil, and health markets. The company's 43,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $13.7 billion for the fiscal year ended December 31, 2021.

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BUSINESS AVIATION

LeaseWorks Advances Novus Aviation Capital’s Digital Transformation

Novus Aviation Capital | September 21, 2022

LeaseWorks, a leading provider of cloud-based solutions and services to the aviation industry, announced during the ISTAT EMEA conference that Novus Aviation Capital deployed the company’s Aeris Asset software to support the day-to-day management of the Dubai-based lessor’s global leasing operations.With a focus on enhancing the leasing platform’s agility and innovation, the Novus team sought out asset management software that would be fully customizable, providing finance, technical, contracts and marketing departments with one true source of information about their aircraft. “We are thrilled to expand our relationship with Novus and enhance the platform’s competitive advantage by providing a single source of truth for managing, trading and marketing assets,” Haseem Vazhayil, CEO, LeaseWorks. The Novus team leverages Aeris Asset’s robust capabilities to: Customize Tech Spec and Lease Summary dashboards for use by Technical; Generate on-demand reports for management; Automate the flow of asset and lease information from Deal Management into Lease Management, eliminating redundant data entry; and Integrate ongoing software improvements via quarterly product releases. Mamoun Kuzbari, Novus’ Chief Commercial Officer, explains that owing to the ease of use and wide-ranging functions of Aeris Asset, our team was able to accelerate the digital transformation initiative effort and streamline the decision-making process across the technical, contracts, finance and commercial teams. We built the Aeris Asset solution with lessors’ unique needs in mind, ensuring that the software provides a simple and intuitive interface and a flexible framework that enable team members to perform complete customizations, with little or no external support adds Vazhayil. Aeris Asset provides lessors’ teams with the ability to: Better manage asset and lease data; Automate Business Intelligence reporting; Customize Tech Spec and Lease Summary dashboards; Integrate enhancements via quarterly product releases; and Integrate seamlessly with Aeris Match to feed data from deals to lease management and vice-versa, providing real-time access to information for decision-making About LeaseWorks LeaseWorks® provides cloud-based products and services to the aviation leasing community, with solutions for both lessors and airlines. Aeris MATCH™ helps lessors more quickly and effectively deploy their aviation assets with airlines around the globe. Aeris ASSET™ allows both lessors and airlines to manage the intricate details of aviation leases. These are the first two of a suite of products that will constitute a full-life-cycle portal for managing leased aviation assets. www.lease-works.com About Novus Aviation Capital Established in 1994, Novus Aviation Capital (“Novus”) is an independent, privately held aircraft leasing platform, focused on investing in commercial aircraft assets. The Novus team operates out of its four global offices in the Middle East, Europe, and Asia and is active in operating and financing leases, mezzanine and, junior debt as well as third-party aircraft remarketing, servicing and, advisory services

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Spotlight

Adverse weather conditions, strikes, political reasons, and other different causes can impact the long-term success of an airline. An effective Disruption Management System can predict the occurrence of these events and assist by reducing the impact on the operations.

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