Avolon has agreed to establish Constellation Aviation with I Squared Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority. Its November 2 announcement describes an initial aircraft portfolio with a current market value of $1.4 billion.
The initial fleet
Constellation is expected to acquire 22 aircraft from Avolon when the transaction completes. They average about five years old and are already leased to 17 airlines in 15 countries.
Avolon will retain a minority equity interest and serve as the venture’s exclusive aircraft manager and servicer.
Completion still requires approvals
The transaction is subject to regulatory approvals and will be supported by a syndicated bank debt facility. The announcement gives no firm closing date or equity contribution figure.
The planned transfer concerns aircraft already in airline service. The $1.4 billion figure describes the seed portfolio’s current market value.
