Air Lease
Encyclopedia
Air Lease Corporation is an aircraft leasing company founded in 2010 and headed by Steven Udvar-Házy. ALC hopes to capitalize on air travel growth from airlines in high-growth markets such as Asia, the Pacific Rim, Latin America, the Middle East and Eastern Europe. As of the end of 2010, Air Lease said it owned 40 Airbus and Boeing aircraft and had agreed to buy four used aircraft, within a year, and 144 new aircraft by 2017. The plans were expanded, however, and as of June 2011, the projected order is for 234 more aircraft, to be acquired over the 10-year period from 2011-2021. The airplanes are being ordered from Boeing (BA), Airbus (EADS
), Embraer
and ATR.
Air Lease offers airlines net operating leases, which require the lessee to pay for maintenance, insurance, taxes and all other aircraft operating expenses during the lease term.
Udvar-Házy, chairman and chief executive of Air Lease, was a founder of Century City aircraft leasing giant International Lease Finance Corp. and stayed on as chief executive after it was sold to American International Group Inc. in 1990. Udvar-Házy, 64, left ILFC in 2009 in a dispute with the troubled company, which required a $180-billion government bailout during the financial crisis.
He started Air Lease in February 2010 with former ILFC chief operating officer, John Plueger, who has the same role at the new company. Leonard Green & Partners L.P, Ares Management LLC, and Commonwealth Bank of Australia hold the largest stakes in the company, roughly 10 percent each, according to the filing. Udvar-Hazy, whom the Business Journal last year estimated had a net worth of $1.85 billion, has a 7 percent stake. It was the largest buyer of aircraft at the 2010 Farnborough Air Show
, having ordered 136 aircraft valued at in excess of US$10 billion, including 31 Airbus A320
s, 20 Airbus A321
s, 54 Boeing 737-800
s and 15 Embraer E-190
s, for delivery beginning in 2012.
(IPO) of Class A, on the New York Stock Exchange, and raised an estimated total of about A$922 million (US$965.52 million).
EADS
The European Aeronautic Defence and Space Company N.V. is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide...
), Embraer
Embraer
Embraer S.A. is a Brazilian aerospace conglomerate that produces commercial, military, and executive aircraft and provides aeronautical services....
and ATR.
Founding of company
"Airlines in some of these emerging markets have fewer financing alternatives, enabling us to command relatively higher lease rates compared to more mature markets," the company said in the S-1 filing with the U.S. Securities and Exchange Commission. "With our well-established industry contacts and access to capital, we believe we will be able to continue successfully implementing our business strategy worldwide."Air Lease offers airlines net operating leases, which require the lessee to pay for maintenance, insurance, taxes and all other aircraft operating expenses during the lease term.
Udvar-Házy, chairman and chief executive of Air Lease, was a founder of Century City aircraft leasing giant International Lease Finance Corp. and stayed on as chief executive after it was sold to American International Group Inc. in 1990. Udvar-Házy, 64, left ILFC in 2009 in a dispute with the troubled company, which required a $180-billion government bailout during the financial crisis.
He started Air Lease in February 2010 with former ILFC chief operating officer, John Plueger, who has the same role at the new company. Leonard Green & Partners L.P, Ares Management LLC, and Commonwealth Bank of Australia hold the largest stakes in the company, roughly 10 percent each, according to the filing. Udvar-Hazy, whom the Business Journal last year estimated had a net worth of $1.85 billion, has a 7 percent stake. It was the largest buyer of aircraft at the 2010 Farnborough Air Show
Farnborough Air Show
The Farnborough International Airshow is a seven-day international trade fair for the aerospace industry which is held in even-numbered years in mid-July at Farnborough Airfield in Hampshire, England....
, having ordered 136 aircraft valued at in excess of US$10 billion, including 31 Airbus A320
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
s, 20 Airbus A321
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
s, 54 Boeing 737-800
Boeing 737 Next Generation
The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...
s and 15 Embraer E-190
Embraer E-Jets
The Embraer E-Jets are a series of narrow-body, twin-engine, medium-range, jet airliners produced by Embraer, a Brazilian aerospace conglomerate that produces commercial, military, and corporate aircraft. Announced at the Paris Air Show in 1999, and entering production in 2002, the aircraft series...
s, for delivery beginning in 2012.
Public offering of Class A in April 2011
On April 19, 2011, ALC had an initial public offeringInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO) of Class A, on the New York Stock Exchange, and raised an estimated total of about A$922 million (US$965.52 million).