07 Mar 2025
#2 March 2025: North American Aviation Newsletter
Exchange Income Corporation (EIC) Announces Binding Agreement to Acquire Canadian North
Exchange Income Corporation (EIC) has signed a binding purchase agreement to acquire Bradley Air Services Limited, operating as Canadian North, for $205 million, subject to adjustments. The transaction will be funded through the issuance of $10 million in EIC common shares to the vendors and $195 million in cash from EIC’s credit facility. This acquisition strengthens EIC’s foothold in the Northern aviation market, adding complementary routes and operations. EIC President Carmele Peter emphasised the company’s commitment to understanding the unique operational and customer needs of Northern Aviation, reinforcing its position as a leading regional airline.
FTAI Secures $2.5 Billion in Debt Financing for Strategic Capital Initiative
FTAI Aviation has announced that its Strategic Capital Initiative (SCI) has secured $2.5 billion in debt financing, backed by ATLAS SP Partners (Apollo Funds) and Deutsche Bank AG, New York Branch. This funding will allow FTAI to deploy over $4.0 billion in capital towards on-lease 737NG and A320ceo aircraft, maintaining an asset-light business model. All engines under the SCI will be powered by FTAI’s Maintenance, Repair, and Exchange (MRE) business, ensuring cost-effective and efficient fleet operations. CEO Joseph P. Adams highlighted this milestone as a pivotal step in making SCI one of the largest investors in mid-life, on-lease aircraft, reflecting strong market confidence.
Pratt & Whitney GTF Advantage Engine Achieves FAA Certification
Pratt & Whitney’s GTF Advantage™ engine has received type certification from the U.S. Federal Aviation Administration (FAA) for the Airbus A320neo family. The latest addition to the GTF engine series delivers 4-8% more takeoff thrust, allowing for higher payload capacity, extended range, and lower carbon emissions. The engine is particularly beneficial for long-range aircraft, such as the A321XLR, offering enhanced fuel efficiency and durability. Rick Deurloo, President of Commercial Engines at Pratt & Whitney, celebrated this milestone as the company marks its 100-year anniversary in 2025, reaffirming its role in shaping the future of aviation propulsion.
Acumen’s Take
On EIC’s Acquisition of Canadian North
Acquiring Canadian North strengthens EIC’s position in the Northern aviation sector, consolidating routes and increasing operational efficiency. The deal reflects ongoing regional airline consolidation trends, ensuring better service integration, cost efficiencies, and expanded route networks. Acumen believes this move reinforces EIC’s strategic expansion and underscores the importance of specialised regional carriers in servicing remote and underserved markets.
On FTAI’s Strategic Capital Initiative
Securing $2.5 billion in financing is a testament to FTAI’s strong investment strategy. By focusing on mid-life, on-lease aircraft, the company is tapping into a lucrative and growing segment of the aviation market. The asset-light approach, combined with FTAI’s in-house MRE business, optimises cost control while ensuring high operational uptime. Acumen recognises this as a strategic long-term play, catering to the rising demand for cost-efficient, well-maintained aircraft.
On Pratt & Whitney’s GTF Advantage Engine Certification
The FAA certification of the GTF Advantage engine is a significant milestone in aviation propulsion. With improved thrust, fuel efficiency, and reduced emissions, the engine aligns with the industry’s push for sustainability. The A321XLR, benefiting from this technology, is poised to become a game-changer for long-haul, narrow-body operations. Acumen views this as a critical advancement in aircraft efficiency, making longer routes more viable while reducing operational costs for airlines.
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