13 April 2018 — Singapore
GECAS and its wholly owned subsidiary, PK AirFinance announced today it had concluded a significant aircraft financing transaction covering a total of 51 aircraft operated by Lion Air Group, GECAS' largest customer Southeast Asia.
“We are thrilled to continue our relationship with Lion Air Group and support their strong growth plans for the future,” declares GECAS’ SVP & Manager, Clem McCloskey.
The financing covers 21 Boeing 737-900ER's currently operated by Lion Air and 30 aircraft on order by Lion Air, including Boeing 737 MAX 8’s and 9’s as well as the Airbus A320/A321neo.
“Working closely with our colleagues at GECAS,” explains PK AirFinance’s SVP & Manager, Shinji Sato, “we were able to develop a structured transaction that meets the objectives of Lion Air, providing them a complete solution.”
“GECAS has been a long-time lessor for Lion Air from its first Boeing classic to the new generation aircraft and now to the new technology aircraft of MAX & neo,” states Edward Sirait, Lion Air Group CEO, “and their ability to tailor a solution of this scale and support the expansion of the group’s MRO unit, Batam Aero Technic, is one of the many reasons we have come to regard them as a business partner over the years.”
“It was a great pleasure to be a part of this landmark transaction with GECAS and PK AirFinance”, asserts KJ Yang, Korea Development Bank’s (KDB) Head of Aviation Finance Team. “With the strong partnerships KDB has with both PK and Lion Air, we look forward to future opportunities to sustain Lion Air’s growth in the region.”
GE Capital Aviation Services (GECAS) is a world leader in aviation leasing and financing. With 50 years of aviation finance experience, GECAS offers a wide range of aircraft types including narrow-bodies, wide-bodies, regional jets, turboprops, freighters and helicopters, plus multiple financing products and services including operating leases, purchase/leasebacks, secured debt financing, capital markets, engine leasing, airframe parts management and airport/airline consulting. GECAS owns or services a fleet of nearly 2,000 aircraft (1,685 fixed wing/ 310 rotary wing) in operation or on order, plus provides loans collateralized on an additional ~400 aircraft. GECAS serves ~250 customers in over 75 countries from a network of 26 offices. gecas.com
About PK AirFinance
PK AirFinance is a leading provider and arranger of asset-based financing of commercial aircraft. We serve airlines, aircraft traders, lessors, investors, financial institutions and manufacturers worldwide. A wholly-owned subsidiary of GECAS, the business traces its history to the 1970’s when PK-Banken was established in Luxembourg by Pkbanken Sweden and joined GECAS in 2000. PK has arranged aircraft acquisition/disposition and/or financing for more than 120 airlines and all aircraft types. PKAir.com
About Lion Air Group
Since Lion Air took to the skies with one aircraft in its fleet on 30 June 2000, the group now comprises of five airlines in 3 countries - Lion Air, Wings Air, Batik Air, Malindo Air in Malaysia and Thai Lion Air in Thailand. It has the largest market share in domestic travel in Indonesia. As of 31 December 2017, total fleet size stood at 299 aircraft comprising of ATR72s, B737NG, B737MAX, A320CEO and A330CEO. Aggressive and innovative business expansion make Lion Air Group who now has full facilities to support their businesses such as training and education center, offices, housing for the ground crew and flight crew located at Lion City-Balaraja, the pilot training school located at Bandara Mas-Tangerang and a maintenance and overhaul facility (Batam Aero Technic) that is located in Batam, Indonesia. To continue to expand its business network, Lion Air Group started freight business called Lion Parcel.
About the Korea Development Bank
The Korea Development Bank (“KDB"), founded in 1954, is a largest government-owned policy bank in Korea. KDB offers clients a broad range of financial products and services through its expertise in corporate banking, investment banking, and corporate restructuring. Having been a long-time partner of the two flag carriers of Korea from the early 1990s, KDB is also currently active in financing non-Korean airlines and leasing companies over the past decade. www.kdb.co.kr
GECAS Media Contact:
+1 203 842 5887