AerCap Holdings (AER) to Lease 10 New Airbus A330 Jets to Virgin Atlantic; Abu Dhabi's Waha Capital to Acquire 50% Stake in AerVenture

June 22, 2009 8:05 AM EDT

Yesterday, AerCap Holdings N.V. (NYSE: AER) announced that Abu Dhabi-based investment holding company Waha Capital PJSC has agreed to acquire a fifty percent stake in AerVenture Limited. The remaining fifty percent will be held by AerVenture's current parent company AerCap. The parties have committed to a combined total equity investment in AerVenture of US$270 million.

AerVenture, established in 2006 with a focus on new Airbus A320 family aircraft, has a US$2.4 billion asset base that includes 22 A320s plus firm orders for a further 32. AerVenture had become a wholly-owned subsidiary of AerCap earlier this month following the termination of its joint venture with two Kuwaiti co-investors, LoadAir and Al Fawares.

Separately, AerCap announced today that it has signed letters of intent with Virgin Atlantic Airways for the purchase and leaseback of six Airbus A330-300s that Virgin Atlantic has on order with Airbus. In addition, AerCap will lease four Airbus A330-300 aircraft to Virgin Atlantic from its own A330 order.

The lease terms for all aircraft are twelve years and deliveries are scheduled for 2011 and 2012. Virgin Atlantic has not yet selected the engine type.

AerCap expects to finance the six new aircraft purchases under its existing funding facilities. The four aircraft for direct lease to Virgin Atlantic were the only remaining positions from AerCap's order of thirty Airbus A330s placed in 2006/2007.

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