ALAFCO Sells Portfolio of 23 Aircraft to Macquarie AirFinance

Macquarie AirFinance, a prominent provider of aircraft leasing and financing solutions, has entred into an agreement to acquire an additional portfolio of 23 aircraft from Kuwait-based ALAFCO Aviation Lease and Finance Company (“ALAFCO”) for approximately $US1.1 billion. This acquisition further strengthens Macquarie AirFinance’s position in the aviation sector and expands its collaboration with ALAFCO. 

Rob Bartlett (pictured left), serving as Head of Legal – Fleet and Transactions department at Macquarie AirFinance, and Paul Mercer (pictured right), serving as General Counsel at ALAFCO Aviation Lease, are spearheading their organizations’ legal divisions. 

The portfolio comprises predominantly new technology commercial passenger aircraft with an average age of approximately five years. Currently leased to 10 airlines across 9 countries, these aircraft contribute to Macquarie AirFinance’s efforts to transition its fleet to newer, more fuel-efficient models, thereby reducing the average carbon emissions intensity. 

Eamonn Bane, Chief Executive Officer of Macquarie AirFinance, expressed enthusiasm about the acquisition, stating, “The addition of these aircraft to our portfolio enhances the scale and age of our fleet, ensuring we can meet the growing demand of our partner airlines for more efficient aircraft.” 

Adel Albanwan, Chief Executive Officer of ALAFCO, extended best wishes to Macquarie AirFinance, emphasizing confidence in the strategic growth plan. He also acknowledged the efforts of ALAFCO’s colleagues in building an outstanding portfolio over the past three decades. 

Macquarie AirFinance’s existing agreement with ALAFCO aims to support the company’s continued growth by acquiring aircraft portfolios. With offices in Dublin, London, San Francisco, and Singapore, Macquarie AirFinance is owned by Macquarie Asset Management, PGGM Infrastructure Fund, and Australian Retirement Trust. 

The transaction, approved by ALAFCO shareholders at an Extraordinary General Meeting, is expected to be completed in Q2 2024, subject to customary closing conditions. This acquisition underscores Macquarie AirFinance’s commitment to expanding its global aviation presence and meeting the evolving needs of the industry.