Overview
- KKR and its aviation partner Altavair have set aside up to $1.4 billion to deploy into aircraft leasing and finance deals over the coming years with most capital still available for deployment.
- Planned deal types include long-term leases, purchase-and-leaseback transactions, direct purchases from airlines and manufacturers, secondary-market buys, and passenger-to-freight conversions.
- The firms will prioritize multi-year leases to established passenger and cargo operators and say they will largely avoid investments in distressed or bankruptcy cases.
- Persistent production shortfalls at Airbus and Boeing have tightened plane availability and pushed airlines to lease roughly half of the global passenger fleet, increasing demand for outside financing.
- The move builds on KKR’s decade of aviation investing and could free airline cash for operations and fleet growth while giving KKR predictable lease cash flows and a larger role in shaping secondary and cargo markets.