15 May 2025

#3 May 2025: Irish Aircraft Leasing Newsletter

Acorn Capital Acquires Four Airbus A330-300s from Altavair in Strategic Lifecycle Investment

Acorn Capital Management, via its managed entity Scissortail Aviation International Leasing I Limited (SAIL I Ltd.), has successfully acquired four Airbus A330-300 aircraft from Altavair L.P. as of 28 April 2025. The aircraft are currently operating under short-term leases with a major flag carrier, and will eventually transition to end-of-life asset management under EirTrade Aviation, another Acorn portfolio company.

Justin Chung, Head of Alternative Credit Strategies at Acorn, stated:

“This represents a significant step forward for Acorn in proving our capability to deliver creative, high-quality structured aviation investments. We look forward to building on this momentum with our partners at Altavair and appreciate the support from Investec in providing innovative financing solutions.”

The deal highlights Acorn’s expanding strategy in aviation lifecycle investment, with plans to manage the aircraft through to disassembly and part-out, positioning them to unlock value from maturing widebody assets.

AerFin Completes Teardown of Japan Airlines B777-300ER, Expands USM Reach in the Americas

AerFin has completed the teardown of a Boeing 777-300ER formerly operated by Japan Airlines, marking the first in a planned series of 777 teardowns over the next 12 months. The disassembly was conducted in New Mexico, with major components such as nacelles and reverse thrusters now secured in Arizona, and the majority of usable parts moved to AerFin’s Miami warehouse.

Jacqueline Fernandez, SVP Americas at AerFin, stated:

“We’re proud to bring this B777-300ER material to market at a time when operators are seeking cost-effective, sustainable support for their fleets.”

This effort significantly boosts AerFin’s Used Serviceable Material (USM) stock, aligning with growing global demand for affordable widebody spares, especially in post-COVID fleet reactivation and maintenance cycles.

Avolon Secures US$1 Billion Unsecured Bank Facility from Middle East Syndicate

Avolon has raised US$1 billion via a new unsecured dual-tranche bank facility with participation from six Middle East-based financial institutions, including Emirates NBD Capital, Abu Dhabi Commercial Bank PJSC, and Warba Bank K.S.C.P.. The facility includes both conventional and Islamic tranches, with a four-year tenor, and introduces five new banking relationships to Avolon’s portfolio.

Ross O’Connor, Chief Financial Officer at Avolon, commented:

“This facility further expands our banking relationships in the Middle East consistent with our strategy of diversifying our sources of capital. It demonstrates the strong appetite in the region for high quality aviation lending opportunities.”

The transaction follows Avolon’s $750 million credit raise in June 2024, reinforcing the lessor’s position as a top-tier credit in aviation finance and expanding its access to alternative regional capital markets.

Acumen’s Take

On Acorn’s A330-300 Acquisition

This deal exemplifies la ifecycle-oriented leasing strategy, allowing Acorn to maximise value from late-phase aircraft through controlled transitions—from lease revenue to eventual asset disassembly and part harvesting. With EirTrade managing the asset’s exit, Acorn is demonstrating how vertically integrated aviation investing can unlock value across every stage of the aircraft lifecycle.

On AerFin’s 777-300ER Teardown Program

AerFin’s move into 777 teardowns is timely and strategic. As airlines look to manage costs while keeping ageing widebodies flying, demand for high-quality USM has surged. With components now located in Miami, AerFin can deliver rapid regional access to spares across the Americas—an edge in a market where supply chain speed and sustainability increasingly influence MRO decisions.

On Avolon’s Middle East Financing Facility

Avolon’s latest raise demonstrates its growing ability to tap alternative capital pools beyond traditional Western banks. By incorporating Shariah-compliant structures, it expands its investor reach and credit versatility. With the Middle East becoming an increasingly prominent aviation finance hub, this deal positions Avolon well for future placements and competitive pricing in a tightening interest rate environment.

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