October 13, 2008
Aviation Capital Group Reports Third Quarter 2008 Activity
Aviation Capital Group, one of the world's Top Tier lessors, today reported its activity for the third quarter.
ACG ended the quarter with the delivery of the first of two new Airbus A330-200s to Avianca Airlines, the national carrier of Colombia. The airplane was delivered September 30; the second will be delivered in November.
Other aircraft transactions for the quarter include:
New Lessee(Buyer) Aircraft Activity Type Sunwing Airlines B737-800 Purchase Ukraine Int'l Airlines B737-300 Extension TAP A319-100 Extension Gulf Air A320-200 Extension Gulf Air A320-200 Extension Vladivostok A320-200 New Lease bmi B737-300 New Lease Olympic B737-300 New Lease --- B727-200 Sale El Al B737-800 Purchase NewAir & Tours B737-700 Purchase VRG B737-800 Purchase P.T.Garuda Indonesia B737-300 New Lease P.T.Garuda Indonesia B737-300 New Lease Avianca A330-200 Purchase
Also during the quarter were the multiple orders announced at the Farnborough Air Show:
-- ACG announced orders for 25 shipsets of the CFM-56 engines produced by CFM International. This order is valued at $325 million at list prices. These will power Airbus A320s.
-- Also announced at the Air Show was an order for 25 shipsets of the V2500 engine by International Aero Engines and will power A320s. This order is valued at more than $400 million.
-- ACG announced an order for 23 Airbus A320s. List price value was $1.8 billion.
-- ACG announced an order for 15 Boeing 737-700s with a list price of $934 million.
The aircraft orders place ACG second among the world's lessors with a backlog of A320s and 737s, the Company's core market.
"ACG continues its solid performance for the year," said R. Stephen Hannahs, group managing director and CEO of ACG. "These orders fit our business model of taking the long view through turbulent times, a benefit we have with our own management outlook and the ownership of a financially solid and conservative parent company. ACG is on track for its 19th consecutive profitable year. Our investment-grade credit rating remains unchanged despite the turmoil in the capital markets, an endorsement of our business strategy and conservative business model."
Hannahs said that the orders placed this year are for the latest, improved engines incorporating advances in technologies to reduce fuel consumption and carbon emissions. Airbus and Boeing continue to enhance the airframes with product improvement packages.
"Our orders are scheduled for delivery over a seven year period that provides for a prudent stream of aircraft for growth and our own fleet renewal," Hannahs said.
Aviation Capital Group is owner/lessor and portfolio manager of a diversified fleet of commercial jet aircraft leased to the world's leading airlines. Its portfolio includes 234 aircraft leased to 93 airlines in 40 countries with an additional 155 aircraft on order with Boeing and Airbus. ACG's Capital Markets Group also provides asset management and remarketing services to aircraft investors and institutional clients. ACG was founded in 1989 and is a wholly-owned subsidiary of Pacific LifeCorp, the parent company of Pacific Life Insurance Company.