- Saudi Arabia's Public Investment Fund-owned AviLease has entered into a $3.6 billion deal with Standard Chartered to acquire its aviation finance business. Under the agreement, AviLease will take over a portfolio of 100 narrow body aircraft and assume the role of servicer for an additional 22 aircraft. The combined entity is set to manage and own 167 fuel-efficient aircraft, comprising 145 owned aircraft valued at nearly $6 billion and 22 managed aircraft valued at approximately $800 million, which are leased to 46 global airlines.
- Established in June 2022 with headquarters in Riyadh, AviLease, specializes in leasing, asset management, and trading services. It recently secured a $1.1 billion five-year loan to facilitate its fleet expansion, as it envisions growing its aircraft count to around 300 by 2030, striving to position itself as a leading global aircraft lessor.
Why it matters
This acquisition aligns with Saudi Arabia's Vision 2030 economic diversification initiative, aiming to enhance the aviation sector's contribution to non-oil GDP by expanding passenger traffic and destinations. By investing heavily in the aviation sector and acquiring Standard Chartered's aviation finance business, AviLease aims to play a pivotal role in meeting the country's ambitious targets of boosting passenger traffic, increasing the number of destinations, and driving overall economic growth.
