TrueNoord, the specialist regional aircraft lessor, has leased two De Havilland Dash 8-400 aircraft to Norwegian airline, Widerøe’s Flyveselskap AS. The two 2013 vintage aircraft, MSN 4439/4448, are on an operating lease and formed part of TrueNoord’s latest portfolio acquisition from NAC.
The novation of these aircraft is TrueNoord’s first transaction in Norway and increases the lessor’s footprint across the Nordic region in terms of aircraft and carriers. “Turboprops continue to play a vital role in connecting remote communities through the right sizing of capacity to meet demand, their inherent reliability, and operating cost benefits,” says Michael Adams, Sales Director Europe. “TrueNoord is delighted to add Widerøe as a customer, expanding our Dash 8-400 portfolio with the Nordic region’s largest operator of regional aircraft.”
Widerøe is the oldest Norwegian aviation group with 3,500 dedicated employees and operates flights to 49 destinations in Norway and Europe. As a provider of essential public transportation in rural Norway, Widerøe’s flights play a significant role in supporting businesses, healthcare, education, tourism, and culture. For more than 90 years, Widerøe’s operations have enabled people to live and thrive along the extensive Norwegian coastline.
“Widerøe recognises the professional support TrueNoord has provided through the novation of these two Dash 8-400s, which has been seamless,” says Werner Skaue, Director of Aircraft Trading at Widerøe’s Flyveselskap AS. “Our team is pleased to welcome them as a trusted lessor partner going forwards.”
Avolon acquires 188 planes with acquisition of Castlelake Aviation
Avolon, a leading global aviation finance company, announced an agreement to acquire Castlelake Aviation Limited (‘CA Ltd’), an entity managed by Castlelake L.P., the global alternative investment manager. CA Ltd’s total assets as of 31 March 2024 were US$5.0 billion, which included a portfolio of 105 aircraft on lease, commitments for 13 new-technology aircraft, 2 engines on lease, and 9 loans. The portfolio is 68% narrowbody aircraft, 70% new technology aircraft, has a weighted average aircraft age of 4.7 years, and a weighted average remaining lease term of 8.4 years. The transaction will accelerate Avolon’s earnings growth, building its fleet at attractive yields. It is supported by Avolon’s strong balance sheet position, with US$8.2 billion of available liquidity at 30 June 2024. Pro forma for the transaction Avolon’s balance sheet metrics remain within its target investment grade ranges, with net debt to equity of 2.8x and next 12 months sources to uses of 1.5x.
Andy Cronin, Avolon CEO, commented: “This transaction accelerates our growth plans adding a portfolio of assets that will further strengthen our cashflow and earnings profile. Our balance sheet strength, high levels of liquidity, and established capital markets access have enabled us to acquire these assets. They are complementary to our existing portfolio and will increase our fleet at attractive yields, supporting our positive ratings trajectory.”
Joe McConnell, Castlelake Partner and Deputy Co-Chief Investment Officer commented: “We’re pleased to collaborate with Avolon on this notable transaction, delivering what we believe is a win-win for all parties: returning capital to Castlelake’s and CA Ltd.’s investor stakeholders, position lessees for ongoing high-quality asset management services, and provide Avolon with a fleet of high-quality aircraft assets.”
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