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Avolon a new aircraft leasing company, established with Domhnall Slattery as CEO, founder of RBS Aviation Capital, has attracted 7 senior managers from RBS Aviation Capital, the Dublin based airfinance unit of RBS. Avolon has received investment from US private equity group Oakhill Capital Partners of $500m while UBS is working on a $690m revolving credit facility to fund its first acquisitions.
John Higgins, chief commercial officer; Tom Ashe, head of origination; Andy Cronin, senior vice president capital markets; Ed Riley, senior vice president commercial negotiation; Dick Forsberg, head of strategy; Pat Hannigan, senior vice president aircraft finance and leasing, who also managed RBS's relationship with Boeing; and Simon Hanson, head of Asia Pacific have all announced their resignation from RBS and their move to Avolon. Slattery who left Royal Bank of Scotland in 2004, is CEO. Denis Nayden, managing partner of Oakhill and a former chairman and CEO of GE Capital, will be chairman. Nayden negotiated GE Capital's acquisition of GPA in 1993.
Oak Hill already owns 17 aircraft and ordered six 777-200LRFs in 2007. The first two are due to be delivered in the next few months. It is likely that Avolon will take over the management of these.
Like RBS Aviation Capital, Avolon will focus on liquid single-aisle aircraft and expects these to account for 80 per cent of the portfolio. It will also look at passenger 777s, A330-200s, 787s and Airbuses A350 programme. Up to 10 per cent of the portfolio may consist of Embraer 190s. Avolon will acquire aircraft through sale/leasebacks and speculative orders with manufacturers. It will also look at portfolio acquisitions. |
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