KGAL aviation on course for success: 19 transactions in 2014

Grünwald, 20.11.2014 – The aviation asset category of the KGAL Group has developed very positively in the first nine months of 2014. The company was able to complete 19 transactions with various aircraft types, using a number of different financing models. The total volume amounts to more than USD 400 million.

The biggest deal was completed in July this year. Thanks to their excellent relationships, KGAL and GOAL were able to place 12 Airbus A319 aircraft with an US investor after holding them for just one year. The aircraft were held both in the retail fund SkyClass 58 as well as in various private placements for family offices. Investors in the fund saw a considerable increase in value within the space of a year. The asset manager GOAL is a joint venture between Deutsche Lufthansa AG and KGAL, which has existed since 1998.

In May, KGAL/GOAL sold two Bombardier Dash 8-Q400 regional aircraft ahead of schedule thanks to their good market presence. The aircraft have been let to Croatia Airlines by means of a 10-year lease.

With the sale of a Bombardier CRJ 900 aircraft, which is leased to Alitalia, another aircraft commitment was brought to a successful conclusion in which the forecast returns were achieved.

Furthermore, in the middle of the year, new financing was secured for a Boeing 747-400F freight aircraft for Cargolux Airlines International.

Via Lufthansa Leasing GmbH, another joint venture between Deutsche Lufthansa AG and KGAL existing for 25 years, three Japanese operating leases (JOL) for Airbus A320-200 aircraft were arranged with Japanese investors. The financing volume here ran into the triple-digit million range.

“The transactions demonstrate the scope of KGAL’s aviation expertise. The key to our success lies in profound market knowledge and GOAL’s necessary market know-how, as well as close ties to airlines, manufacturers and other leasing companies. We are therefore well equipped to take advantage of the expected growth in the aviation market and will continue to be able to identify interesting opportunities for our investors and complete attractive transactions,” says Jochen Hörger, Head of the Aviation Division at KGAL.

KGAL has been active in the aviation asset class since 1979. Since then, it has completed transactions for around 700 aircraft. In the area of funds, the total investment volume amounts to around EUR 6.0 billion.