TrueNoord, the specialist regional aircraft lessor, continues its growth path with the addition of two Embraer E195 aircraft on lease to Portugália. Both aircraft, MSN19000407 and MSN19000429, were purchased with leases attached from Brazilian operator Azul. The project was financed by TrueNoord’s revolving warehouse facility underwritten by Citibank, Société Générale and Royal Bank of Canada. Legal counsel for TrueNoord on the acquisition was CMS, with Milbank advising on the financing. With this acquisition, TrueNoord completes another significant milestone and reaches a fleet of 50 modern regional aircraft.
Garry Topp, Sales Director for TrueNoord responsible for the Americas, comments: “This was a complex transaction carried out during the COVID-19 crisis. It was conceived, negotiated and executed by people working remotely on all sides. There was a real commitment to get it done and everyone involved showed great creativity, patience, discipline and teamwork to achieve success.”
Anne-Bart Tieleman, CEO – TrueNoord, adds “Considering the market disruption caused by the COVID-19 crisis and the pressures this has created across the aviation industry, it is a credit to the team at TrueNoord, Azul and Portugália that they remained focused and worked together to close this multifaceted transaction. We appreciate the support of our shareholders and banks in these difficult times as we plan for the future, and we are proud to welcome Portugália to our business as a new lessee.”
On behalf of Azul, Alex Malfitani, CFO said “This transaction shows that there is interest in the market for assets such as the Embraer E195 even with the challenges that the aviation industry is facing amidst the pandemic. We feel fortunate to have valuable partners to count on while facing such an unprecedented crisis. TrueNoord have come to us with creative and practical alternatives that generate value to our business, and we look forward to continuing to develop our relationship with them.”
Valter Fernandes, Managing Director of Portugália, commented “These have been extremely challenging times for the aviation industry and due to a great deal of effort and endurance from all involved, we are delighted to join TrueNoord with two ERJ195s and look forward to building our relationship at the highest level. It is with great pleasure and enthusiasm that we embrace this new venture.”
Portugália Airlines is a Portuguese regional airline. It is a subsidiary of TAP Air Portugal and operates scheduled international and domestic services from its bases at Lisbon Airport and Porto Airport under the brand TAP Express. Renovation of their regional fleet has been a major initiative for the past five years and TAP Express operates the Embraer 190 and 195, as well as the ATR72-600, across its route network. These aircraft benefit from low emission characteristics and provide the airline with significant savings in fuel consumption.
9 September 2020