Stamford firm to lease planes to KLM
STAMFORD — Aircraftleasing firm Aircastle, which announced last week that it would be sold, said Tuesday it would lease 11 planes to KLM Cityhopper, a regional subsidiary of KLM, the Netherlands’ flagcarrier airline.
Aircastle would place 11 E195E2 aircraft, which would be delivered between 2021 and 2024.
The agreement reflects the impact of Aircastle’s partnership with the E195E2’s maker, Brazilbased Embraer, from which Aircastle recently committed to buying nearly $1 billion in “nextgeneration” regionaljet planes.
“These technologically advanced, fuel efficient jets are a nice addition to Aircastle’s geographically diversified investment in predominantly singleaisle, indemand, modern aircraft,” Aircastle CEO Mike Inglese said in a statement. “This transaction marks a milestone in our E2 program as we have now placed over half of our E2 program commitment of 25 aircraft.”
As of Sept. 30, Aircastle owned and managed 277 aircraft on behalf of its joint ventures. Those planes were leased to 87 customers across 48 countries.
On Nov. 6, Aircastle announced it would be acquired for about $7.4 billion by affiliates of Japanese companies Marubeni Corp., and Mizuho Leasing Co.
The acquisition values Aircastle at about $2.4 billion, while the remaining $5 billion factors in debt obligations. The transaction is scheduled to close in the first half of 2020.
Aircastle shareholders would receive $32 for each common share, a 34 percent premium over the firm’s closing stock price on Oct. 23, the last trading day before it announced it was evaluating “strategic alternatives.”
Company officials have not said whether the acquisition would affect Aircastle’s local operations.
Its main offices are located downtown, at 201 Tresser Blvd. It moved there in 2017, after formerly operating in the First Stamford Place complex in the city’s Waterside section.
The company also has offices in Dublin and Singapore.
In the second quarter, Aircastle’s revenues increased 9 percent year over year, to about $223 million. Profits decreased by nearly 40 percent, to about $31 million — a decline that reflected a lack of aircraft sales in the quarter and higher depreciation and interest expenses.