Altavair AirFinance, KKR partner to acquire USD 1bn portfolio from Etihad Airways

Global investment firm KKR has announced it has partnered with commercial aviation finance provider Altavair AirFinance to acquire a portfolio of commercial aircraft from Etihad Airways, the national airline of the United Arab Emirates, the company said.

The acquisition will be made through aircraft leasing investment platform Altitude Aircraft Leasing, which was established by KKR´s credit and infrastructure funds in 2018 to acquire aircraft serviced by Altavair.

The aircraft portfolio being acquired includes Etihad Airways´ owned fleet of Boeing 777-300ERs and Trent powered Airbus A330-300s and A330-200s. The transaction provides for the Boeing 777-300ERs to be leased back to Etihad upon purchase in early 2020, while the Airbus A330s will be delivered over the next 22 months and placed on lease with other international operators for either passenger operations or as converted freighters.

Etihad Aviation Group, a diversified global aviation and travel company, flies to over 84 destinations with a fleet of 100 Airbus and Boeing aircraft, serving 17.8m passengers and carrying 682,100 tons of cargo in 2018.

KKR manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds.

Altavair L.P. is an asset manager and solutions provider focusing on the acquisition of new and used commercial aircraft for leasing to domestic and international passenger airlines and cargo operators.