HALO AirFinance, a joint venture between GA Telesis and Tokyo Century Corporation, has successfully closed a financing deal for Crestone Air Partners and Atalaya Capital Management. The funds acquired through this transaction will be used to acquire two Airbus A320-200 aircraft that will be managed by Crestone.
This partnership demonstrates HALO’s commitment to supporting the secondary market trading activity of on-lease aircraft. Marc Cho, Co-Head and Managing Director of HALO, expressed his enthusiasm for supporting experienced investors like Crestone and Atalaya. They recognize the importance of innovative financing solutions and flexible partners in building their portfolio.
HALO AirFinance, established by GA Telesis and Tokyo Century Corporation, delivers customized lending solutions to airlines, lessors, and investors. Their focus includes new to mid-life aircraft and engines, offering a range of services and products to cater to their clients’ needs. Their underwriting approach is supported by the extensive capabilities of the GA Telesis Ecosystem and the Tokyo Century conglomerate.
GA Telesis, a leading provider of integrated services in the commercial aviation industry, operates across six continents. Their GA Telesis Ecosystem™ allows them to leverage their resources and create innovative solutions for their customers. With a strong emphasis on customer success, the company is known for its excellence and integrity.
Tokyo Century Corporation, a financial services company, holds a 49.2% stake in GA Telesis. They develop a business model that integrates finance, services, and business expertise through co-creative partnerships. With a global network spanning over 30 countries, they offer diverse finance and services that contribute to solving social and environmental issues.
The successful financing deal between HALO AirFinance, Crestone Air Partners, and Atalaya Capital Management showcases the importance of collaboration and flexibility in the aviation industry. It paves the way for further growth and innovation in aircraft financing, benefiting both investors and the industry as a whole.
Please contact [email protected] for more information about HALO AirFinance, or [email protected] for further details about Tokyo Century Corporation.
While the article provides an overview of the financing deal between HALO AirFinance, Crestone Air Partners, and Atalaya Capital Management, there are several additional facts, market trends, challenges, and controversies that can be discussed:
1. Market Trends:
a. Increasing demand for aircraft financing: The aviation industry continues to experience growth, leading to a higher demand for aircraft financing. This trend is driven by airlines looking to expand their fleets, lessors seeking to acquire aircraft for leasing, and investors looking for attractive investment opportunities in the aviation sector.
b. Rise of alternative financing solutions: In addition to traditional bank loans, alternative financing solutions such as leasing, sale-and-leaseback agreements, and asset-backed securities have gained popularity in the aircraft financing market. These options provide flexibility and tailored financing solutions to airlines and lessors.
2. Forecasts:
a. Growth in aircraft leasing: The demand for leased aircraft is expected to increase in the coming years. According to forecasts, the global aircraft leasing market is projected to grow at a CAGR of around 10% from 2021 to 2026. This growth can be attributed to factors such as cost-effectiveness, flexibility, and the ability to access the latest aircraft technology.
b. Expansion of regional markets: Emerging economies and regions such as Asia-Pacific, Latin America, and the Middle East are expected to witness substantial growth in aircraft financing and leasing. These regions offer significant market potential due to increasing air travel demand and expanding airline fleets.
3. Key Challenges:
a. Volatility in the airline industry: The aviation industry is susceptible to various external factors, including economic downturns, geopolitical tensions, fuel price fluctuations, and pandemics such as COVID-19. These challenges can impact the financial stability of airlines and, subsequently, the aircraft financing market.
b. Technological advancements and obsolescence: With rapid advancements in aircraft technology, older aircraft models may become less desirable for operators and investors. This poses a challenge for aircraft lessors, who need to manage their fleets effectively to avoid holding obsolete assets.
Advantages and Disadvantages:
The financing deal between HALO AirFinance, Crestone Air Partners, and Atalaya Capital Management offers several advantages, including:
– Increased access to capital for acquiring aircraft: The financing deal enables Crestone Air Partners to expand its fleet by acquiring two Airbus A320-200 aircraft. This access to capital allows them to meet their operational needs and cater to market demands.
– Collaborative partnership: The collaboration between HALO AirFinance, Crestone Air Partners, and Atalaya Capital Management demonstrates the importance of working together to achieve mutual success in the aviation industry. It allows for the sharing of expertise, resources, and innovative financing solutions.
However, there are also potential disadvantages to consider, such as:
– Financial risks: The aviation industry is inherently risky, and any investment in aircraft carries financial risks, including potential fluctuations in aircraft values, lease defaults, or changes in market conditions.
– Market competition: The aircraft financing market is highly competitive, with many players vying for opportunities. This can make it challenging to secure favorable terms and differentiate offerings to attract investors or lessees.
Suggested related links:
– GA Telesis
– Tokyo Century Corporation