Specialist regional aircraft lessor, TrueNoord, has completed a sale agreement for 11 aircraft with Nordic Aviation Capital (NAC). This portfolio of aircraft, comprising four Dash 8-400s, three E175s and four E190s, will increase TrueNoord’s fleet of new and young in-production turboprop and regional jets to 87 aircraft. The transaction sees TrueNoord welcome Australian airline Aviair and European lessee airlines LOT and Widerøe, as well as increase its footprint with existing North American airline customers, Air Canada and Breeze Airways. The integration of all 11 aircraft is targeted to be completed during Q1 2024.
The signing of this sales agreement marks the second sizable transaction between the two lessors, following TrueNoord’s acquisition of 10 Embraer jets from NAC earlier in 2023. Richard Jacobs, Chief Commercial Officer, TrueNoord, comments, “During the previous 10 aircraft bilateral deal with NAC, both parties found synergies in our diligence, novation and closing procedures. Trust on execution certainty has grown and our teams have established positive working relationships, together finding creative solutions to matters arising during closings. I expect this to make the execution of this second transaction faster and simpler than the first.
“It is admirable how the NAC team have focused on this transaction with so many other deals under simultaneous execution. We have appreciated the quick decisions and pragmatic approach, from both sides, to streamline the process.” Jacobs continues, “The regional aircraft market has sprung back and demand is outstripping the true availability of aircraft, with assets grounded largely due to a combination of return conditions and supply chain delays. So, we are seeing a positive trend of values and lease rents and expect this trend to continue, as the supply chain remains tight and issues impact the new generation of narrowbody aircraft. Another influencing factor is that many network operators have relied on their regional network during COVID and they are continuing to use their regional aircraft to right-size their fleet and generate better yields.”
This transaction underlines the different strategic growth paths for both companies and TrueNoord’s continued commitment to the regional aircraft leasing sector. Despite parts of the industry still facing difficulties due to economic pressures and the ongoing effects of COVID-19, TrueNoord has secure funding in place plus a strong and experienced internal team to support its balanced and structured growth aspirations.
13 December 2023