AviLease to supply SDH Wings with up to 20 new technology aircraft

AviLease + SDH Wings ink preliminary agreement for aircraft: SaudiPIF-owned aircraft lessor AviLease and Chinese aircraft lessor SDH Wings have inked an MoU for the supply of up to 20 new technology aircraft, according to a statement. SDH Wings has already identified the first five new technology narrowbody aircraft from AviLease’s portfolio that are now under letter of intent, the statement notes. No financial details or a timeline for delivery has been disclosed.

The details: Under the terms of the agreement, AviLease will propose different portfolios of primarily new technology narrowbody aircraft from its portfolio and future acquisition pipeline, expanding SDH Wings’ portfolio of owned aircraft. The arrangement also allows SDH Wings’ majority shareholder Sichuan Development International Holdings (SDIH) and AviLease to bolster their relationship on their joint venture platform. AviLease acquired a 10% stake in SDH Wings as part of its recent acquisition of Standard Chartered’s aircraft leasing platform, the statement notes.

REMEMBER- PIF-backed AviLease acquired Standard Chartered’s aviation finance business in late August in a USD 700 mn transaction that saw it assume control of the division’s owned and managed portfolio of 120 aircraft.

What they said: “We consider there to be vast untapped potential in the Asian aviation industry and hope to leverage our close relationship with SDH Wings to access new markets as part of our growth strategy,” AviLease CEO Edward O’Byrne said.

About AviLease: Established in 2022, Riyadh-based AviLease is wholly owned by Saudi’s sovereign wealth Public Investment Fund. The outfit provides financing solutions and aircraft capacity to carriers via purchase and lease-back transactions, secondary portfolio acquisitions, and direct orders from aircraft makers, according to the company’s website.