AerCapital has committed an investment of $135 million in the new joint venture.
The joint venture agreement, which was signed here in the capital will clear the way of Waha’s entry in the global aircraft leasing. Completion of the transaction is scheduled before the end of June 2009.
The agreement was signed by Salem Rashid Al Noaimi, Chief Executive Officer of Waha Capital and Klaus Heinemann, Chief Executive Officer of AerCap.
AerVenture has a $2.4 billion asset base that includes 22 A320s, which have already been delivered to Air France KLM, Royal Jordanian and other European and Middle Eastern airlines. There are also firm orders for 32 aircraft, whose deliveries will begin in early 2011, Klaus said.
The company had already secured financing for its fleet delivered from a consortium of French banks led by Calyon Investment and Corporate Bank.
AerVenture’s founding partnership with Kuwait’s LoadAir/Al Fawares ended earlier this month, due to issues related to domestic markets, said Kalus Heinemann.
Al Noaimi said that the joint venture has nothing to do with on-going global financial meltdown, as AerCap has strong financial credentials. “We are confident in this equity investment in AerVenture,” Al Noaimi said.
Klaus Heinemann, Chief Executive Officer of AerCap, said that his company wanted a strong partner from the Middle East region.
AerCap which has five per cent stake in the MENA region’s aviation leasing market said, there is good market for brand new aircraft while financial crisis has impacted only the lease rentals of old aircraft by 50 per cent.
“With Waha as a joint venture partner, AerVenture’s position is even stronger than in the past,” Heinemann said.
Salem Rashid Al Noaimi, Chief Executive Officer of Waha Capital said with the Etihad Airways ambitious plans to expand its fleet to 150 aircraft; the new firm will certainly look into the emerging business opportunities. Meanwhile AerVenture purchased an Airbus A320 from Waha, while AerCap’s subsidiary AeroTurbine purchased four older A320 family aircraft.
Al Noaimi said that Waha Capital owned or has provided finance for 47 aircraft with a market value of $1.8 billion.
AerCap is involved in aircraft and engine leasing, trading and parts sales. The company has a portfolio of 295 aircraft and 78 engines that are either owned, on order, under contract or letter of intent, or managed.
Headquartered in The Netherlands, also provides aircraft management services and performs aircraft maintenance, repair and overhaul services and aircraft disassemblies.
haseebhaider@khaleejtimes.com
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