AltitudeOne Aviation launches in Ireland
L1 Treasury and Airborne Capital launched AltitudeOne Aviation with plans to acquire a portfolio of leased in-production narrow-body and wide-body commercial aircraft. Together, the two companies have committed equity capital of approximately US$250 million to AltitudeOne Aviation, which will be supplemented with bank financing.
September 25, 2018 By Wings Staff
Airborne Capital will be the asset manager and lease servicer for AltitudeOne Aviation, while L1 Treasury is an international investment business with net assets in excess of US$25 billion.
Airborne Capital was launched in November 2017 with substantial backing from FEXCO Group, Ireland’s largest privately owned financial services company, and Natixis Investment Managers. The company explains it has aggressive plans to have aircraft assets under management of more than US$5 billion within its first five years.
Referencing research results from Boeing, the companies behind AltitudeOne explain the commercial aviation industry is predicted to double the size of its fleet in the next 20 years, largely based on growing passenger demand. Boeing pegs this passenger growth number at 4.7 per cent per annum until 2036, noting this will require significant funding from traditional and non-traditional sources.
“We are delighted to be working with the Airborne Capital team on this important investment and we look forward to playing an increasing role in the aviation funding markets,” said Nitin Bhandari, head of direct investments for L1 Treasury. “With the financial support and expertise that we can provide combined with the industry expertise of the Airborne Capital team, we believe that this business can grow rapidly to play a significant role in the market segments it is targeting.”