Waha Capital buys into aircraft finance firm

Waha Capital has agreed to buy a 50 per cent stake in a Dutch aircraft finance company with assets worth US$2.4 billion (Dh8.8bn), in an undisclosed cash transaction. The holding company, backed by the Abu Dhabi Government, will take the stake in AerVenture from the parent company AerCap, a firm based in Amsterdam and listed on the New York Stock Exchange. AerVenture has a fleet of Airbus A320-family narrow-bodied aircraft, including 22 in service with airlines such as Air Arabia and Royal Jordanian. It has another 32 on order from Airbus.

Waha and AerCap have agreed to invest $135 million each into the venture. Waha has an existing portfolio of 47 aircraft worth $1.8bn. "[The joint venture] significantly expands Waha's footprint in the global acquisition and leasing sector," said Salem al Noaimi, the chief executive of Waha Capital. Although the aviation leasing market has suffered with the downturn in global air travel, "times of great challenges are also times of great opportunities", said Mr al Noaimi. "That is what we are trying to capitalise on here."

And while the economic slowdown has narrowed the list of banks and financial firms in the aircraft leasing business, Mr al Noaimi described AerVenture as a company with an "extremely solid financial footing". He said AerVenture had already arranged the financing requirements and the customers for the new A320s expected to be delivered in the next three years. Klaus Heineman, the chief executive at AerCap, said his company hoped to benefit from Abu Dhabi's "recent and growing commitment to the global aerospace sector".

Mr Heineman said that although rates had fallen 50 per cent in some areas of aircraft leasing, the market for new single-aisled planes remained stable. Waha's involvement with AerCap began in December, when it bought a wide-bodied Airbus 330-200 and an Airbus A320-200 from the Dutch firm. AerVenture was founded between AerCap and LoadAir, based in Kuwait, but the Kuwaiti firm withdrew its participation last month, according to AerCap.

Mr al Noaimi said Waha could be interested in further partnerships with AerCap, such as helping to bring the company's AeroTurbine engine leasing business to the Middle East. [e-mail]