Saudi PIF establishes Aircraft Leasing Company ‘AviLease’

By Arya M Nair, Intern Reporter
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The Saudi Public Investment Fund (PIF) has launched the Aircraft Leasing Company ‘AviLease’, which aims to be a leading institution across the aviation leasing value chain, maintaining an optimal portfolio of assets with its core focus on leasing, trading and asset management services.

‘AviLease’ will initially focus on scaling through purchase-and-lease-back transactions with airlines, portfolio acquisitions and direct orders from aircraft manufacturers. It will also look into expansions through corporate acquisitions. The company’s fleet will consist of the new generation of narrow-body and wide-body aircraft from the world’s leading manufacturers.

The company will be managed by a top-tier team that will lead its growth, localize knowledge and expertise, and enable the development of the company’s desired infrastructure, with plans to become a national champion in the aircraft leasing market. Additionally, the establishment will contribute to the reduction of value leakage for Saudi Arabia, while enhancing integration into the global aircraft financing market.

As a PIF fully owned company, the ample liquidity and strong balance sheet of PIF, combined with its depth of financing and investment-structuring expertise will help the company leverage the opportunity in the aircraft leasing market.

The launch of AviLease underlines PIF’s mission to unlock the capabilities of promising sectors locally that can help drive the diversification of the economy and contribute to non-oil GDP growth. In addition, the company will be supporting a thriving aviation sector and driving financial sustainability within the aviation ecosystem in line with Saudi Vision 2030.

PIF is one of the largest and most impactful sovereign wealth funds in the world. As of the end of Q1 2022, its Assets under Management (AuM) had reached approximately $620 billion, and it had established 54 companies and created more than half a million direct and indirect jobs.

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