AE Industrial Partners Completes Sale-Leaseback Transaction with Allegiant Air

Rhea-AI Summary

AE Industrial Partners has finalized a sale and leaseback deal with Allegiant Air involving four Airbus A319 aircraft, marking the first aircraft leasing transaction from its Aerospace Opportunities Fund. The transaction aims to enhance Allegiant's operational flexibility in a challenging aviation environment. AEI's senior director expressed optimism about Allegiant's business model, anticipating a strong recovery in 2021 as travel demand increases. Specific transaction terms were not disclosed, but both companies anticipate ongoing collaboration.

Positive

• First aircraft leasing transaction from AE Industrial's Aerospace Opportunities Fund.
• Allegiant Air expected to benefit from operational flexibility.
• Positive outlook for Allegiant as travel demand is projected to rise in 2021.

Negative

• None.

BOCA RATON, Fla., Nov. 16, 2020 /PRNewswire/ -- AE Industrial Partners, LP ("AEI"), a private equity firm specializing in Aerospace, Defense & Government Services, Power Generation, and Specialty Industrial markets, announced today the completion of a sale and leaseback transaction with Allegiant Air ("Allegiant") involving four Airbus A319 aircraft. The transaction is the firm's first aircraft leasing transaction made from its AE Industrial Partners Aerospace Opportunities Fund, an aircraft and engine leasing investment platform launched early this year. Terms of the transaction were not disclosed.

"We are excited to embark on this partnership with Allegiant and to complete the first aircraft leasing transaction for our AE Industrial Partners Aerospace Opportunities Fund," said Mark Satran, Senior Managing Director at AEI. "We believe that Allegiant, with its low-cost, domestic leisure business model, is well-positioned for a strong return in 2021, as travelers look to reunite with family and friends. The workhorse nature of the A320 family aircraft is a great fit for our investors, and we're impressed by what Allegiant's management has rapidly accomplished during these turbulent times for the aviation industry."

"The investment from AEI will provide Allegiant with greater flexibility as we address an unprecedented time in the industry. We were happy with the results of this transaction and look forward to an ongoing collaboration," said Robert Neal, Treasurer and Vice President of Fleet & Corporate Finance at Allegiant.

About Allegiant Travel Company
Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with premier leisure experiences - from vacations to hometown family entertainment. Since 1999, Allegiant Air has linked travelers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant's all-Airbus fleet serves communities across the nation, with base airfares less than half the cost of the average domestic roundtrip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF

About AE Industrial Partners
AE Industrial Partners is a private equity firm specializing in Aerospace, Defense & Government Services, Power Generation, and Specialty Industrial markets. AE Industrial Partners invests in market-leading companies that can benefit from our deep industry knowledge, operating experience, and relationships throughout our target markets. AE Industrial Partners is a signatory to the United Nations Principles for Responsible Investment. Learn more at www.aeroequity.com.

CONTACT:
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Jennifer Hurson
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Caroline Luz
203-656-2829
cluz@lambert.com

 

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SOURCE AE Industrial Partners

FAQ

What was the recent transaction between AE Industrial Partners and Allegiant Air?

AE Industrial Partners completed a sale and leaseback transaction involving four Airbus A319 aircraft with Allegiant Air.

How will Allegiant Air benefit from the sale and leaseback transaction?

The transaction will provide Allegiant with greater operational flexibility during challenging times in the aviation industry.

What is the significance of this transaction for AE Industrial Partners?

This transaction is notable as it marks the first aircraft leasing deal from AE Industrial's Aerospace Opportunities Fund.

What is the expected outlook for Allegiant Air following this transaction?

Allegiant is positioned for a strong recovery in 2021 as travel demand is anticipated to increase.

When was the sale and leaseback transaction completed?

The transaction was announced on November 16, 2020.