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KKR To Invest $1.15 Billion In Aircraft Leases

Global aircraft leasing is on the rebound as airlines continue to remain cautious post-pandemic.


Global investment firm KKR has deepened its partnership with Altavair L.P., a world leader in commercial aviation finance. Recently announced, KKR will invest a further $1.15 billion to expand its commercial aircraft leasing portfolio. Altavair currently holds aircraft ranging from Airbus A220-300s to Boeing 777 freighters.


50% Interest in Altavair L.P.

KKR acquired a 50% interest in Altavair L.P. in 2018 and has invested over $1.7 billion in funds in addition to the recent announcement. Since this partnership, 90 aircraft have been acquired into the company’s portfolio. 75% of the portfolio is currently leased to tier-one airlines worldwide.

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Dan Pietrzak, KKR Partner and Co-Head of Private Credit commented on the investment:

“We are thrilled to deepen our footprint in aircraft leasing through this new commitment, which underscores the conviction that we have in this space and our confidence in Altavair as a partner.”

“We look forward to growing our portfolio further to support the fleet needs of airlines and operators around the world.”

An airBaltic Airbus A220-300

$8.3 billion invested

KKR currently has approximately $8.3 billion in capital invested in the aviation sector. Since 2015 the company has partnered with global aviation leasings firms such as Altavair, AV AirFinance, Atlantic Aviation, KKR DVB Aviation Capital, K2 Aviation, Wheels Up, Global Jet Capital, and Jet Edge.

Brandon Freiman, KKR Partner and Head of North American Infrastructure, discussed the need for liquidity in the aviation sector:

“Airlines are increasingly seeking greater liquidity and fleet flexibility, which is creating significant opportunities for high quality leasing teams with deep access to private capital”

Post-pandemic, airlines are scaling up. However, with the industry’s fragility, airlines remain cautious when investing in new aircraft. Aviation finance can provide a stable, collateral-backed cash flow. Through KKR’s investment with Altavair, expectations are to see double-digit growth across the portfolio of its aviation-leasing assets. Brandon Freiman further commented:

“We are proud to serve this growing need in partnership with Altavair.”

Alaska Airlines

Photo: Alaska Airlines

Partnering with global airlines

Airline leasing isn’t new to the industry, with many airlines already leasing through Altavair, among other competitors. The company works in 29 countries, partnering with 73 global customers. A range of currently represented (but not extensive) are:

Air Canada Boeing 777

Photo: The Bold Bureau | Shutterstock.

Who are Altavair L.P?

Altavair L.P. focuses on acquiring new and used commercial aircraft for leasing to various global airlines for domestic and international passenger and freight operations. Established in 2003, Altavair has commissioned in excess of $10 billion in commercial aircraft lease transactions. As the company’s website noted, ‘We are a worldwide leader in aviation finance, helping companies make amazing things happen by connecting the world.’

Sources: Business Wire, Bloomberg

  • 787-8 Dreamliner

    Boeing

    Stock Code:
    BA

    Date Founded:
    1916-07-15

    CEO:
    Dave Calhoun

    Headquarters Location:
    Chicago, USA

    Key Product Lines:
    Boeing 737, Boeing 747, Boeing 757, Boeing 767, Boeing 777, Boeing 787

    Business Type:
    Planemaker

  • rsz_airbus_50th_years_anniversary_formation_flight_-_air_to_air

    Airbus

    Stock Code:
    AIR

    Date Founded:
    1970-12-18

    CEO:
    Guillaume Faury

    Headquarters Location:
    Toulouse, France

    Key Product Lines:
    Airbus A220, Airbus A320, Airbus A330, Airbus A340, Airbus A350, Airbus A380

    Business Type:
    Planemaker

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