Nordic Aviation Capital (NAC) has confirmed that it has executed a sale agreement for four Dash 8-400s, three E175s, and four E190 aircraft with TrueNoord, a regional aircraft lessor based in the Netherlands.
Regional aircraft lessor, TrueNoord, has also confirmed the transaction as a sale agreement for 11 aircraft with Nordic Aviation Capital (NAC). The transaction comprises four Dash 8-400s, three E175s and four E190s.
TrueNoord also said that the current transaction will increase TrueNoord’s fleet of new and young in-production turboprop and regional jets to a fleet of 87 aircraft.
As per the press release , the transaction also sees TrueNoord welcoming 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.
TrueNoord anticipates the integration of all 11 aircraft to be completed during Q1 2024. The signing of this sales agreement was revealed as the second sizable transaction between the two leasing companies, following TrueNoord’s acquisition of 10 Embraer jets from NAC earlier in 2023.
The January 2023 sale agreement for eight Embraer E190s and two E175s with Nordic Aviation Capital was financed by Citibank, Société Générale Corporate & Investment Banking, Royal Bank of Canada, and NordLB.
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.”
TrueNoord says,
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.
