LONDON – Are we heading towards consolidation in the airline leasing market? Recently one has witnessed that there have been many consolidations and take-overs within the aircraft leasing market.
This taking over signifies that lots of lessors are in need of credit due to the uncertainty surrounding the volatile aviation market.
On the 11th of July 2022, SVP Global (Strategic Value Partners) and its associates, which is a well-renowned investment firm will now fully acquire Deucalion Aviation Limited.
SVP Global managed over $18 billion in assets scattered globally and that venturing into aviation is also one of their area of investment. In fact, since June 2021, SVPGlobal controlled half of Deucalion.
Deucalion, as an aircraft leasing firm, manages and controls up to 180 jets that are on leasing contracts to over 80 operators and airlines. These aircraft are then used by clients and are often financed by banks, investors, financiers and lessors.
Led by Jon Skirrow and Stephan Sayre, Deucalion is truly a global company, with offices in London, Singapore and Dublin, and houses dozens of talented employees with expertise in aviation and financial services.
The company provides services such as marketing, technical management, finance and origination professionals. Currently, Deucalion’s fleet composition makes up of 127 narrow-body aircraft and 33 wide-body aircraft.
Like most lessons, they bank their bets on narrow-body aircraft, as these machines are well demanded globally and are considered to be the pre-pandemic workhorses.
Co-CEO & CIO of Deucalion, Stephan Sayre, commented: “SVPGlobal has been a significant investor in aviation-related opportunities over the last 18 months, extending the firm’s long track record of investing in the space.”
“With this additional commitment, along with its complementary skills and capabilities, SVPGlobal provides Deucalion with a very strong platform to further grow its franchise and customer base, particularly amidst a more challenging, near-term market.”
Co-Head of SVPGlobal’s European Investment Team, John Brantl, said: “Over the last 18 months, SVPGlobal has taken advantage of the dislocation in the aviation market by deploying over $2.5 billion in aircraft-related investments.”
“With full ownership of Deucalion’s top-tier, full-service global aircraft management and investment platform, SVPGlobal’s aircraft investment capabilities will be even further strengthened. We look forward to our continued partnership with the Deucalion team.”
This is the time for big creditors like SVPGlobal to invest in the aviation market. Despite headwinds, like the new covid variants and the rise in commodity price, businesses like aviation leasing firms are resetting themselves and gearing up for a stronger comeback, which poses a stronger proposition for creditors to invest in such firms.
With SVPGlobal taking full ownership of Deucalion, this is meant that the leasing firm is financially assured in the big decisions that they make and to better position themselves in a volatile and ever-growing competitive market.