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Air Berlin Sells $700 Million Portfolio to ICBC Leasing
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Written by Laura S. West   
Wednesday, 21 December 2011
The package of 18 new and used aircraft partially closed in September 2010, with the remaining aircraft expected to deliver by 2012

Air Berlin has agreed to sell 18 new and used aircraft to ICBC Leasing, the Chinese lessor which is 100% owned by Industrial and Commercial Bank of China. The deal is worth approximately $700 million.

The portfolio to be sold includes 12 new and six used aircraft ranging in vintage from two to three years. The transaction consists of two parts.

First, ICBC Leasing will purchase outright four Boeing 737-800s and six Airbus A320s. The lessor has already placed the majority of these aircraft, says Johnny Lau, managing director, ICBC.

Second, the two parties will complete sale/leasebacks on two Airbus A319s, two A320s and four Boeing 737-800s.

Some of the transactions have already closed, and the remainder are expected to close this year and in 2012.

Air Berlin did not issue RFPs for the portfolio, rather, ICBC Leasing approached the airline and negotiated the purchase privately, says Lau.

The lessor, which has a portfolio of around 60 aircraft, hopes to grow to 100 aircraft by the end of 2011.

Ulf H?ttmeyer, CFO, Air Berlin, says that the transaction enhances Air Berlin's financing options by tapping the Chinese financial market.

In 2010 the airline closed sale/leasebacks with Avolon, Macquarie AirFinance and Air Lease Corporation.

Air Berlin's fleet, along with its subsidiary NIKI, consists of 169 aircraft with an average age of five years.
Last Updated ( Wednesday, 21 December 2011 )