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Etihad Airways is selling some of its widebody aircraft to global investment firm KKR and aircraft lessor Altavair AirFinance (Altavair) for $1 billion.
Both the firms have signed a “definitive agreement” to acquire Etihad’s portfolio of commercial aircraft, a media statement said.
The planes being acquired include the UAE national carrier’s fleet of Boeing 777-300ERs, Trent-powered Airbus A330-300s and A330-200s, according to KKR and Altavair.
“The acquisition will be made through aircraft leasing investment platform Altitude Aircraft Leasing, which was established by KKR’s credit and infrastructure funds in 2018 to acquire aircraft serviced by Altavair,” the two companies said in a statement.
When contacted by Zawya, Etihad confirmed the announcement but did not provide further details about the deal, including the total number of aircraft it is selling to KKR and Altavair.
"As Etihad moves into the third year of its transformation programme, we have partnered with KKR and Altavair Airfinance, allowing us to take a further positive step forward in the optimisation of our fleet. The deal offers us flexibility while ensuring we stand by our sustainability targets, and maintain a fleet of the most fuel-efficient, technologically-advanced aircraft," an Etihad spokesperson told Zawya.
Etihad has a fleet of around 120 planes, with approximately 200 more on firm order, including two more Airbus A380s. Last year, the airline reportedly decided to restructure its aircraft order, to acquire 20 fewer Boeing 787 Dreamliners than previously planned.
Sale of Etihad aircraft
According to Tony Douglas, group chief executive officer of Etihad Aviation Group, the new deal will ensure that the airline stands by its “strategic and financial sustainability targets by replacing aircraft with the most technologically-advanced and fuel-efficient fleet types.”
“The structure of this transaction also provides us with significant flexibility meaning we are well placed to respond to future growth requirements,” Douglas said in a statement.
Based on the deal, KKR will lease back to Etihad the Boeing 777-300ERs while the Airbus A330s will be delivered over the next 22 months and placed on lease with other international operators for either passenger operations or as converted freighters.
In 2019, Etihad reported its third consecutive annual loss amid “challenging market conditions and effects of an increase in fuel prices.” Its revenue fell nearly 4 percent to $5.86 billion in 2018, compared with the $1.6 billion it made in 2017.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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