08 Feb 2025
#2 Feb 2025: Irish Aircraft Leasing Newsletter
AerCap Holdings N.V. Announces Pricing of $1.5 Billion Aggregate Principal Amount of Senior Notes
AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust have successfully priced a $1.5 billion senior notes offering. The issuance comprises $750 million of 4.875% Senior Notes due 2028 and $750 million of 5.375% Senior Notes due 2031. These notes are fully guaranteed on a senior unsecured basis by AerCap and certain subsidiaries. The proceeds from the offering will be utilised for general corporate purposes, including aircraft acquisitions, refinancing existing assets, and debt repayment. This move highlights AerCap’s strong financial positioning and strategic focus on expanding its aviation portfolio.
Avolon: Asia-Pacific Growth to Drive Global Airline Revenue Beyond $1 Trillion in 2025
Avolon has released a market outlook report, forecasting that global airline revenue will surpass $1 trillion for the first time in 2025, with Asia-Pacific leading the expansion. The report predicts that seat capacity growth in Asia-Pacific will exceed that of all other regions combined, even as airline expansion slows in the US and Europe. Factors contributing to this include lower oil prices, which helped offset rising maintenance (+19%) and labour costs (+8%), allowing airlines to return to pre-pandemic profit levels. Avolon CEO Andy Cronin emphasised that aircraft leasing remains a strong investment, with demand for new-generation aircraft exceeding supply, benefiting lessors with strong order books.
Milestone Aviation Secures Helicopter Leasing Deal with Equinor
Milestone Aviation has finalised a purchase and leaseback agreement for five new Leonardo AW189 helicopters with Equinor Energy AS, a leading European energy supplier and the largest oil and gas operator on the Norwegian Continental Shelf. The helicopters, scheduled for delivery in 2025 and 2026, will be deployed for offshore missions in the North Sea. Milestone Aviation CEO Pat Sheedy noted that the deal was secured through a competitive tender process, reinforcing Milestone’s agility, execution speed, and strong industry presence. This agreement underlines the growing demand for offshore aviation solutions, particularly in the energy sector.
Acumen’s Take
On AerCap’s Senior Notes Offering
The successful pricing of $1.5 billion in senior notes underscores AerCap’s strong market position and investor confidence in aviation leasing. The allocation of funds for aircraft acquisitions and refinancing aligns with industry trends, where flexibility in fleet financing is key. With high lease rates and strong demand for next-generation aircraft, well-capitalized lessors are poised for sustained growth.
On Avolon’s $1 Trillion Airline Revenue Projection
Avolon’s projection that Asia-Pacific will drive aviation growth reinforces the region’s strategic importance for airlines and lessors. With aircraft shortages persisting, leasing companies will play a crucial role in bridging the gap between airline demand and supply constraints. Lessors with a robust balance sheet and modern fleet are well-positioned to capitalise on rising lease rates and sustained market expansion.
On Milestone Aviation’s Helicopter Lease Agreement with Equinor
This deal highlights the increasing demand for offshore and energy-sector aviation solutions. Helicopter leasing remains a key component of energy operations, and the Leonardo AW189 fleet addition will enhance Equinor’s operational efficiency in the North Sea. This transaction also reinforces Milestone Aviation’s leadership in offshore rotary leasing, demonstrating its ability to execute large-scale, mission-critical contracts.
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