Leading Aircraft Lessor Avolon Stands to Benefit from Coronavirus

Leading Aircraft Lessor Avolon Stands to Benefit from Coronavirus

Major plane lessor Avolon and its peers stand to benefit from the coronavirus epidemic as airways shore up cash by refinancing their aircraft, the Dublin-stationed agency said Wednesday.Leading Aircraft Lessor Avolon Stands to Benefit from Coronavirus

A sale-and-leaseback pattern among airlines “will unquestionably be accentuated now with the coronavirus”, CEO Domhnal Slattery said after Avolon posted $718 million in net earnings for last year.

Privately-held Avolon, the world’s third-biggest lessor of commercial jets, is 70%-controlled by a unit of Chinese conglomerate Hainan Group.

Plane refinancing tends to pick up when airways are buffeted by world crises such as the 1990-1 Gulf War, the September 11 terror assaults a decade later, or the 2003 SARS virus pandemic.

“If we look at the past as a guide, it sometimes has allowed us to exceed,” Slattery stated, adding that sale-and-leaseback interest had already risen on trade strains and economic uncertainty and would get an additional boost from the novel Coronavirus.

Slattery acknowledged a refinancing surge would also benefit competitors – which embrace listed companies Aercap and Air Lease- however, stated Avolon’s money resources and 2.2 debt-to-equity ratios made it significantly well placed.