Concludes year with additional leases to Croatia Airlines and IndiGo, and lease extensions to Aeromexico Connect
Third-party committed leased fleet has now reached 64 aircraft
HALIFAX, January 13, 2020 – Chorus Aviation Inc. ('Chorus') (TSX: CHR) announced today that Chorus Aviation Capital (‘CAC’) added a total of 34 aircraft on-lease in 2019. With this strong market performance, CAC’s third-party lease portfolio has now reached 641 aircraft.
Year-end, and previously unannounced transactions, include the acquisition of two mid-life Dash 8- 400 aircraft (MSNs 4300 and 4301) on lease to Croatia Airlines, and an additional sale leaseback of two new ATR 72-600 aircraft (MSNs 1545 and 1552) with IndiGo. Additionally, CAC has extended its lease agreements with Aerolitoral, S.A. de C.V. (d.b.a. ‘Aeromexico Connect’), a subsidiary of Aerovías de México, S.A. de C.V. (d.b.a. ‘Aeromexico’), on three Embraer 190 aircraft previously acquired in 2017.
“We are delighted with the confidence that our customers have shown in us in 2019. Our strong focus on execution resulted in a significant expansion of our portfolio and the achievement of several significant milestones in the advancement of our leasing company,” said Steve Ridolfi, President, Chorus Aviation Capital. “In the three short years since the establishment of CAC, we have grown the third-party leasing portfolio to 641 aircraft valued at approximately US$1.3 billion with US$960 million in future contract lease revenue.”
“The year 2019 was one of many firsts for CAC. We secured a US$300.0 million warehouse facility, traded our first portfolio aircraft with the previously announced sale of three Dash 8-400 Falcon aircraft, and extended our first leases with the renewal of the three Aeromexico Connect E190 aircraft. With this successful aircraft re-lease outcome, we have no further scheduled lease expiries until 2021. Additionally, 2019 saw us deliver our first Airbus A220-300 aircraft for lease to airBaltic,” continued Mr. Ridolfi.
“We are pleased with the very positive momentum and the achievement of these important milestones,” commented Joe Randell, President and Chief Executive Officer, Chorus. “Trading aircraft, securing lease extensions, and penetrating new markets further demonstrates the capabilities of our maturing aircraft leasing business. As we continue to deliver on our growth strategy, our approach remains to conservatively and profitably build our leasing business.”