KKR, a leading global investment firm, has announced that it will be investing $1.15 billion in aircraft leasing in collaboration with Altavair, a leading aircraft leasing company. This investment is expected to help both companies expand their aircraft leasing portfolios and strengthen their position in the aviation industry.
The investment will be made through KKR’s Global Infrastructure Investors III fund and will be used to acquire a portfolio of 38 aircraft from Altavair. These aircraft include a mix of narrow-body and wide-body planes from manufacturers such as Boeing and Airbus. The portfolio also includes a number of newer, fuel-efficient aircraft that are in high demand among airlines looking to reduce their carbon footprint.
This investment is part of KKR’s broader strategy to invest in infrastructure assets that provide essential services to communities and businesses around the world. The aviation industry is a key component of this strategy, as it plays a critical role in connecting people and goods across the globe.
Altavair, which was formerly known as Guggenheim Aviation Partners, has been a major player in the aircraft leasing industry for over a decade. The company has a strong track record of acquiring and managing aircraft portfolios, and its partnership with KKR is expected to help it continue to grow and expand its business.
The aircraft leasing industry has been growing rapidly in recent years, driven by increasing demand for air travel and the rising cost of purchasing new aircraft. Leasing allows airlines to acquire the planes they need without having to make a large upfront investment, which can be especially attractive for smaller or newer airlines.
However, the industry has also faced challenges in recent years, including the grounding of the Boeing 737 MAX and the impact of the COVID-19 pandemic on air travel. These challenges have led to a slowdown in new aircraft orders and increased demand for leased planes as airlines look to conserve cash.
Despite these challenges, the long-term outlook for the aircraft leasing industry remains strong. As air travel continues to grow and evolve, leasing companies like Altavair and KKR are well-positioned to provide the aircraft and financing that airlines need to keep up with demand.
Overall, KKR’s investment in aircraft leasing in collaboration with Altavair is a significant development for both companies and the aviation industry as a whole. It highlights the continued importance of aircraft leasing as a key component of the global aviation ecosystem and underscores the potential for growth and innovation in this dynamic and rapidly evolving industry.
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