Skytech-AIC, airBaltic and Avation win AirFinance Journal’s “Operating Lease Deal of the Year 2018”
At a ceremony held at New York’s Metropolitan Club on 2nd May 2019, the sale and leaseback of two Airbus A220-300 aircraft by airBaltic to lessor Avation plc in a Skytech-AIC – arranged and structured transaction won the highly-coveted AirFinance Journal “Operating Lease Deal of the Year 2018” award.
Winning against fierce worldwide competition, this was the industry’s first open market sale and leaseback of the Airbus A220-300 (formerly known as the Bombardier CS300) in a transaction combining an asset regarded at the time as non-mainstream with a relatively untested credit, a perceived ambitious price and an ambitious Euro-denominated rental target.
In selecting this transaction for the award, members of the panel of judges said:
“This is what old guys would call a sporty deal; a stressed credit and, at the time of commitment, an out of favour asset which, in hindsight, looks much more solid. Still a creative transaction denominated in Euros and a possible pathfinder, [a] first for A220-300 aircraft”. Another judge added: “First purchase and leaseback for an aircraft which isn’t yet a darling of the market – but things will change. Hats off to the bold and innovative people involved.”
On behalf of Skytech-AIC, Director Richard Noble commented: “To win this award is a huge honour for all the associated parties: it establishes the Airbus A220-300 as a highly successful mainstream operational and financing asset as demonstrated by the popularity of our subsequent sale and leaseback transactions. It is a further great testament to airBaltic: a truly stand-out airline completely transformed over the past seven years by CEO Martin Gauss and his team who pioneered the operation of this game-changing aircraft. And, of course, the award is a great testament to Avation plc whose can-do attitude and cooperative approach were key ingredients in the transaction’s success. Finally, for us at Skytech-AIC, this award confirms the effectiveness of our 27-year continuing strategy of bringing innovative and constructive ideas to our airline clients worldwide.”
Martin Gauss, CEO of airBaltic: “We at airBaltic are truly proud to be recognized on a global scale. As the launch operator of the Airbus A220-300, we took a forward-looking decision on advanced technology to support our turnaround plan leading to sustainable profitability, and today airBaltic is benefiting of the most fuel-efficient regional aircraft.”
Avation Plc Executive Chairman Jeff Chatfield said “we remain committed to expanding our fleet with new technology aircraft for a diverse range of clients and believe that the A220 will have an excellent sales and residual value outlook”.
airBaltic is the most punctual airline in Europe, serving over 70 destinations from Riga, Tallinn and Vilnius. It offers the largest variety of destinations and convenient connections via Riga to its network spanning Europe, Scandinavia, the CIS and the Middle East. The profitable and expanding airline is on track to become an all-A220 operator within the next three years.
