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| Industry | Aircraft leasing |
|---|---|
| Founded | 2010; 14 years ago (2010) |
| Headquarters | , |
| Owner | 70% Bohai Leasing 30% Orix Corporation |
| Website | www |
Avolon is an aircraft leasing company headquartered in Dublin, Ireland.[1] It was established in May 2010 by Dómhnal Slattery[2] and a team from RBS Aviation Capital, including John Higgins, Tom Ashe, Andy Cronin, Simon Hanson, and Ed Riley.[3][4] In December 2014, Avolon went public on the New York Stock Exchange (NYSE) with the ticker symbol AVOL, marking the largest listing of an Irish-founded company on the NYSE.[5] In September 2015, Avolon received a cash offer from Bohai Leasing Co., an affiliated Chinese leasing and financial services company, to acquire 100% of Avolon's common shares.[6] The acquisition by Bohai Leasing was completed in January 2016, leading to Avolon's delisting from the NYSE. In November 2018, ORIX Corporation, a Japanese financial institution, acquired a 30% stake in Avolon from its shareholder, Bohai Capital,[7] which is part of the HNA Group.
In June 2021, Avolon made headlines by placing the world's largest order for eVTOL aircraft, specifically ordering 500 VX4s from Vertical Aerospace.[8]
In October 2022, Dómhnal Slattery, the founding CEO of Avolon, retired, and Andy Cronin, the founding CFO, succeeded him in the position.[9]
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In June 2021, Avolon made an investment in the eVTOL company Vertical Aerospace. Vertical Aerospace announced its intention to list on the Stock Exchange through a SPAC transaction,[32] and they received orders for 1,000 eVTOLs from various companies, including American Airlines, Virgin Atlantic, and Avolon. Avolon placed the single largest order for eVTOLs globally, consisting of 500 Vertical VX4 aircraft. As of March 2022, Avolon had successfully allocated its order to airlines.[33]
Avolon has formed partnerships with GOL in Brazil, JAL in Japan, Gozen Holding in Turkey, Air Asia in Malaysia, and Air Greenland to establish eVTOL ride-sharing businesses utilizing the Vertical VX4 aircraft.[34]
As of 2013, Ireland had established itself as a prominent jurisdiction for aircraft finance and leasing, according to law firm Dillon Eustace. The origins of the Irish industry can be traced back to the establishment of Guinness Peat Aviation in Shannon, County Clare, in 1975. A survey conducted by the Federation of Aerospace Enterprises in Ireland estimated that aviation leasing companies in Ireland managed assets valued at approximately €82.9 billion in 2013.[35]
The financing of aircraft requires a substantial amount of capital, with an estimated annual need exceeding US$100 billion to cover all aircraft deliveries. Aircraft leasing has gained prominence and now accounts for about 40% of the global aircraft financing market. This growth is attributed to airlines recognizing the advantages of leasing, which offers greater flexibility in managing their aircraft fleets. Some lessors anticipated that the proportion of leased aircraft in the global fleet would increase to as much as 50% in the years following 2012.[36]
In April 2019, Avolon released a white paper titled "Project I: Positioning Ireland at the Forefront of Global Startup Innovation." The paper assessed Ireland's start-up ecosystem in comparison to global best practices and offered recommendations to enhance Ireland's global standing and support entrepreneurs.[37]
In July 2018, Avolon published a white paper titled "India, a 21st Century Powerhouse." The paper provided a comprehensive analysis of India's air travel market, covering factors impacting the commercial airline sector and an in-depth breakdown of passenger markets, airline fleets, and future growth projections. The paper projected that India's passenger fleet would nearly double to around 1,100 aircraft by 2027, with a total value of delivered aircraft estimated at $60 billion over the next decade at current list prices. The analysis also highlighted a shortfall of 300 aircraft in India's commercial aviation order book to meet the anticipated growth in demand. The demand was driven primarily by forecasted annual growth rates of 9.6% for domestic passenger demand and 8.3% for international passenger demand.[38]
In the first half of 2017, Avolon published a white paper series titled "The Land of Silk and Money," focusing on the Chinese aviation market. The series analyzed the development, growth, and maturation of China's domestic airline industry, as well as the inbound and outbound travel markets. The analysis indicated that Chinese airlines would require an additional 3,200 aircraft by 2026 to meet future fleet requirements. At the time, more than 50% of these aircraft remained to be ordered, including 1,150 narrow-bodied aircraft, 400 wide-bodied aircraft, and 150 regional jets.[39]
In September 2012, Avolon released an analysis of commercial aircraft's economic lives and retirement patterns. The analysis aimed to evaluate the validity of current assumptions regarding the economic life of commercial jets, which are typically depreciated over a useful life of approximately 25 years. This analysis was particularly relevant as a significant number of aircraft, around 8,000, were expected to be retired over the next decade, surpassing the total number of retirements since the inception of commercial aviation in the 1960s.[40] The Avolon analysis examined changes in retirement trends over time, differences in retirement behavior among specific aircraft types, and the potential impact on retirement trends and aircraft economic values due to the retirement of newer fleets, including the Airbus A320 and Boeing 737NG aircraft.[18]
In February 2013, Avolon published an analysis and investor guide on the anticipated market impact of the transition to new-generation Airbus (320Neo) and Boeing (737MAX) single-aisle aircraft families. The analysis explored how the transition from previous-generation A320ceo and 737NG aircraft to A320Neo and 737MAX models would influence the single-aisle aircraft market in the coming years.[13] The study indicated that the value impact on predecessor models would be limited due to the substantial number of current-generation aircraft in use and the high proportion of the global fleet approaching retirement. The authors predicted that rising passenger numbers in developing countries would drive demand for both the Neo and MAX models, as well as for current-generation aircraft, as airlines sought to increase capacity while facing long waiting lists for the new models. The strong order backlogs of Airbus and Boeing also made the second-hand market an appealing option for fast-growing carriers.[41]
In March 2015, Avolon released an updated analysis of the key factors influencing the economic life of commercial jet aircraft, building upon the previous analysis issued in September 2012. The 2015 analysis also addressed aircraft retirement and storage trends. The paper concluded that retirement patterns had not significantly changed since 2012, with the average retirement age remaining around 25 years and more than 50% of fleets staying in service beyond that point.[18]
In November 2013, Avolon announced the commissioning of a documentary titled "Pioneers and Aviators: A Century of Irish Aviation," which explores the history of Irish aviation. The documentary highlights the achievements and challenges of pioneering individuals who played a significant role in shaping Ireland's aviation landscape. It covers various milestones such as the first transatlantic flight by Alcock and Brown, the evolution of Aer Lingus, the development of airports at Foynes, Shannon, and Dublin, the contributions of Tony Ryan, the rise and fall of GPA, and the enduring influence of Ryanair. The documentary was directed by Alan Gilsenan, an accomplished filmmaker, writer, and theater director, with the score composed by Mícheál Ó Súilleabháin in collaboration with the RTÉ Concert Orchestra.
The premiere of the documentary took place at the Irish National Concert Hall in Dublin on January 22, 2014. It was later broadcast in two episodes on RTÉ Television on February 20 and 27, 2014.[17]
In June 2015, Avolon launched a commemorative photographic book bearing the same title, "Pioneers and Aviators, A Century of Irish Aviation." The book was officially unveiled at an event held at Casement Aerodrome in Baldonnel, Co. Dublin, attended by Taoiseach Enda Kenny TD, Domhnal Slattery (Avolon CEO), Eamonn Brennan (Chief Executive of the Irish Aviation Authority), and Brigadier General Paul Fry (GOC of the Air Corps).[42]
In April 2016, the UCD Michael Smurfit Graduate Business School launched the first MSc in Aviation Finance in Europe. Avolon, along with other prominent aircraft leasing companies, is an industry partner for this master's degree program.[43]
The primary objective of the course is to support and maintain Ireland's status as the largest hub for aviation finance and leasing worldwide.[44]
In October 2015, Avolon announced two initiatives in collaboration with the Royal Hibernian Academy (RHA) as part of its corporate and social responsibility program.[45] These initiatives are the Avolon Global Studio and the Avolon Youthreach Program. The launch event was attended by Domhnal Slattery, Avolon CEO; Mick O'Dea, RHA President; and Patrick T. Murphy, RHA Director.
Avolon Global Studio: In partnership with Avolon, the RHA initiated a global search for an artist who would be awarded a 6-month studio placement at the RHA during 2016, 2017, and 2018. The first residency began in July 2016, providing an exceptional opportunity for an emerging international artist to gain exposure on a global scale and develop their artistic practice within one of Ireland's leading contemporary art organizations. In April 2016, Avolon and the RHA announced that Colombian artist Adriana Salazar would be the first participant in the Avolon Global Studio Program.[46] The second artist to join the program in 2017 was Iranian artist Jinoos Taghizadeh.[47] The selection for the third artist to receive the Avolon Global Studio Award will be from India.[48]
Avolon Youthreach Program: In collaboration with the national Youthreach scheme, the RHA will invite six young students, chosen from submissions received from the 160 Youthreach Centers across the country, to participate in four workshops. These workshops aim to enhance their artistic skills, introduce them to art galleries and colleges, and provide fundamental tools of artistic criticism. By working alongside practicing artists, the students will not only develop practical skills but also gain insights into the opportunities and challenges of pursuing a professional artistic career in Ireland.[49]
Avolon has been recognized with various industry awards, including the Airfinance Journal 2020 Lessor of the Year Award.[50] In 2016, Avolon received the Company of the Year and Aviation Leasing Achievement of the Year Awards at the Aviation Industry Awards. Domhnal Slattery, CEO of Avolon, was honored with the Outstanding Contribution to the Aviation Industry award in 2016.[51] Slattery has also been awarded the NYU Ireland House 2020 Lewis L. Glucksman Award for Leadership and the 2021 Ireland-US Council Award for Outstanding Achievement.[52]
