Air Lease Corporation
|Traded as||NYSE: AL|
|Headquarters||Los Angeles, California, USA|
|Revenue||US$ 336.7 million (2011)|
|Net income||US$$ 53.2 million (2011)|
Air Lease Corporation (ALC) is an American aircraft leasing company founded in 2010 and headed by Steven Udvar-Házy. ALC hopes to capitalize on air travel growth from airlines in high-growth markets such as Asia, the Pacific Rim, Latin America, the Middle East and Eastern Europe. As of the end of 2010, Air Lease said it owned 40 Airbus and Boeing aircraft and had agreed to buy four used aircraft, within a year, and 144 new aircraft by 2017. The plans were expanded, however, and as of June 2011, the projected order is for 234 more aircraft, to be acquired over the 10-year period from 2011-2021. The airplanes are being ordered from Boeing (BA), Airbus (EADS), Embraer and ATR.
"Airlines in some of these emerging markets have fewer financing alternatives, enabling us to command relatively higher lease rates compared to more mature markets," the company said in the S-1 filing with the U.S. Securities and Exchange Commission. "With our well-established industry contacts and access to capital, we believe we will be able to continue successfully implementing our business strategy worldwide."
Air Lease offers airlines net operating leases, which require the lessee to pay for maintenance, insurance, taxes and all other aircraft operating expenses during the lease term.
Steven Udvar-Házy, chairman and chief executive of Air Lease, was a founder of Century City aircraft leasing giant International Lease Finance Corp. and stayed on as chief executive after it was sold to American International Group Inc. in 1990. Udvar-Házy, 64, left ILFC in 2009 following a dispute with AIG, the troubled parent company of ILFC that required a $180-billion government bailout during the financial crisis.
He started Air Lease in February 2010 with former ILFC chief operating officer, John Plueger, who has the same role at the new company. Leonard Green & Partners L.P, Ares Management LLC, and Commonwealth Bank of Australia hold the largest stakes in the company, roughly 10 percent each, according to the filing. Udvar-Hazy, whom the Business Journal last year estimated had a net worth of $1.85 billion, has a 7 percent stake. It was the largest buyer of aircraft at the 2010 Farnborough Air Show, having ordered 136 aircraft valued in excess of US$10 billion, including 31 Airbus A320s, 20 Airbus A321s, 54 Boeing 737-800s and 15 Embraer E-190s, for delivery beginning in 2012.
Public offering of Class A in April 2011
- "ALC 2011 Annual Report". airleasecorp.com. 2011-12-31. Retrieved 2012-06-12.
- "Air Lease press release", Air Lease Corp., July 15, 2010, webpage (PDF file): APDF. retrieved July 21, 2010.
- "Air Lease CEO Discusses Q2 2011 Results", SeekingAlpha.com, August 11, 2011, webpage: SA286: for "balanced future order book of 234 new aircraft".
- "Air Lease IPO to Target Emerging Markets". Los Angeles Business Journal. January 17, 2011. Retrieved April 19, 2011.
- Rothman, Andrea; Ray, Susanna (July 20, 2010). "Udvar-Hazy Jolts Jet Leasing Out of Credit-Crunch Coma". Bloomberg News. Archived from the original on 24 July 2010. Retrieved July 21, 2010.
- Pearson, David (July 19, 2010). "Air Lease Corp Orders 51 A320 Family Aircraft". The Wall Street Journal. Dow Jones Newswires. Retrieved July 21, 2010.[dead link]
- Clark, Nicola (July 20, 2010). "Leasing Start-Up Is Making Noise at Air Show". The New York Times. Retrieved July 21, 2010.
- "AsiaPulse News April 19, 2011 Article Archives", HighBeam Research, highbeam.com, April 19, 2011, webpage: HB409.