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|Owner||70% Bohai Leasing|
30% Orix Corporation
Avolon is an aircraft leasing company based in Dublin, Ireland. It was founded in May 2010 by Dómhnal Slattery, and a team from RBS Aviation Capital including John Higgins, Tom Ashe, Andy Cronin, Simon Hanson and Ed Riley with initial capital of US$1.4 billion. The equity commitment of US$1.4 billion was from four leading international investors: Cinven, CVC Capital Partners, Oak Hill Capital Partners and the Government of Singapore Investment Corporation. Between 2010 and 2014, Avolon also raised US$6.1 billion in debt from the capital markets and a range of commercial and specialist aviation banks including Wells Fargo Securities, Citi, Deutsche Bank, BNP Paribas, Credit Agricole, UBS, DVB, Nord LB and KfW IPEX-Bank. In 2017, Avolon entered the public debt markets and raised a total over US$9 billion in debt finance. In November 2018, Avolon announced that Japanese financial institution, ORIX Corporation had acquired a 30% stake in the business from its shareholder Bohai Capital, part of China's HNA Group. In April 2019, Avolon announced it had raised US$2.5 billion of additional unsecured debt which resulted in an investment grade credit rating from Fitch, Moody's and S&P Global.
As of 31 March, 2020, Avolon had an owned, managed and committed fleet of 855 aircraft.
Avolon has received many industry awards since formation in 2010, most recently the Finance Dublin 2018 M&A Deal of the Year Award. Avolon was awarded Company of the Year and Aviation Leasing Achievement of the Year Award at the 2016 Aviation Industry Awards. Avolon's CEO, Domhnal Slattery, also received an award for Outstanding Contribution to the Aviation Industry in 2016. Avolon's CEO, Domhnal Slattery, received an award for Outstanding Contribution to the Aviation Industry in 2016 and the NYU Ireland House 2020 Lewis L. Glucksman Award for Leadership. 
Ireland is one of the world's leading jurisdictions for aircraft finance and leasing. The Irish industry traces its roots back to the foundation of Guinness Peat Aviation in Shannon, County Clare in 1975 and in the intervening period the aircraft leasing, trading and brokerage industry has proved to be one of Ireland's greatest success stories. As one of the world's major centres for aircraft lessors, a survey conducted by the Federation of Aerospace Enterprises in Ireland estimated that aviation leasing companies in Ireland manage assets worth in the region of EUR82.9 billion.
It is estimated that in excess of US$100 billion of capital will be required every year to finance all the aircraft delivered by manufacturers and aircraft leasing is approaching 40% of the global aircraft financing market. The market has grown as more airlines have concluded that it is better to lease (rent) aircraft which provides for greater flexibility in the aircraft fleet. Some lessors expect the leased component share of the global aircraft fleet to rise to as much as 50% in the next several years.
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In April 2019, Avolon issued a White Paper entitled "Project i" which assessed Ireland's start-up ecosystem when compared to best-in-class around the world. The report provides recommendations on how Ireland could close the gap with international best-practices; improve its global standing and provide the necessary support for entrepreneurs.
In July 2018, Avolon published a white paper titled 'India, a 21st Century Powerhouse', which provides an in-depth analysis of India's air travel market. The paper is divided in two parts; the first section details the factors impacting India's commercial airline sector, while the second part contains an analysis of the Indian aviation market, including a detailed breakdown of the major passenger markets, airline fleets and future growth projections.
The paper forecasted that the India's current passenger fleet will double to almost 1,100 aircraft by 2027 - with the total value of aircraft to be delivered over the coming ten years, at current list prices, projected to be $60 billion. The paper also highlighted that there is a shortfall of 300 aircraft in India's commercial aviation orderbook, which are required to meet the growth in demand over the next ten years. The demand is fuelled in large part by a forecasted annual growth of domestic and international passenger demand of 9.6% and 8.3% respectively.
During first half of 2017, Avolon published a White Paper series titled 'The Land of Silk and Money', which analysed the Chinese aviation market. The first part of this series, issued in March 2017, looked at the development, growth and gradual maturing of China's domestic airline industry and the key drivers of growth over the next decade. The second part, which was published in May 2017, analysed China's international inbound and outbound travel markets. The paper forecasted that Chinese airlines required an additional 3,200 additional aircraft by 2026, to meet future fleet requirements of China's airline industry. At the time of publication, over 50% of these had still to be ordered, including 1,150 narrowbody aircraft, 400 widebody aircraft and 150 regional jets.
In September 2012, Avolon published an analysis of commercial aircraft economic lives and retirement patterns. The purpose was to test whether the current assumptions made by airlines, aviation investors and aircraft financiers, on the economic life of commercial jets - that aircraft should be depreciated over a useful life of approximately 25 years - remains valid. The reason this analysis is so relevant today is that approximately 8,000 aircraft are due to be retired over the next 10 years. This is more than the total number of aircraft retired since commercial aviation began in the 1960s.
The Avolon analysis considers how trends in aircraft retirement have changed over time and identifies key differences between the behaviour of specific aircraft types. The paper also considers the likely impact on retirement trends and aircraft economic values of the retirement of newer fleets, including current Airbus A320 and Boeing 737NG aircraft.
In February 2013 Avolon published an analysis of, and investor guide to, the expected market impact of the transition to new generation Airbus (320Neo) and Boeing (737MAX) single aisle aircraft families. This was Avolon's second white paper on industry issues and considered how the transition from A320ceo/737NG aircraft to A320Neo/737MAX aircraft will influence the single aisle aircraft market over the rest of the decade and beyond. The Avolon paper found that the effect of the Neo and Max models on the value of their predecessors will be limited by the sheer number of current-generation craft in use today and the high portion of the global aircraft fleet approaching retirement. The authors predict that sharper rises in passenger numbers in developing countries will fuel demand for both Neo and Max models, but also, importantly, current-generation aircraft as airlines seek to add capacity but find themselves at the end of long lines for the new models. Both Airbus and Boeing currently have record-high order backlogs, making the second-hand market an appealing option for fast-growing carriers.
In March 2015, Avolon published an updated analysis of the key factors that influence the economic life of commercial jet aircraft building on the analysis issued in September 2012. The 2015 analysis also addresses aircraft retirement and storage trends. The paper concluded that the patterns of retirement behaviour had not materially changed since the 2012 analysis, with the average aircraft retirement age stable at or around 25 years and more than 50% of fleets remaining in service beyond 25 years.
In November 2013, Avolon announced it had commissioned a documentary on the history of Irish Aviation titled: "Pioneers and Aviators, A Century of Irish Aviation. The documentary tells the story of the remarkable, pioneering individuals whose vision, passion, successes and failures helped forge Ireland's unique aviation landscape. The documentary traces this story from its humble beginnings when Alcock and Brown made the first transatlantic flight, landing in a field in the West of Ireland, through the evolution of Aer Lingus and the development of airports at Foynes, Shannon and Dublin, the pivotalemergence of Tony Ryan, the meteoric rise and fall of GPA, the enduring dominance of Ryanair, culminating in a focus on the contemporary story of Ireland's leading role in aviation today.
The documentary Writer and Director, Alan Gilsenan, is an award-winning film-maker, writer and theatre director. His film work has appeared on the BBC, ITV, Channel 4, RTÉ, the History Channel and CNBC among others. The score for the documentary was written by renowned Irish composer Mícheál Ó Súilleabháin working with the RTÉ Concert Orchestra.
The premiere of the documentary took place in the Irish National Concert Hall, Dublin on Wednesday 22 January 2014. The documentary was screened in two 52 minute episodes on RTÉ Television on 20 and 27 February 2014
In June 2015, Avolon launched a commemorative photographic book of the same name - Pioneers and Aviators, A Century of Irish Aviation. The book was formally launched by the Taoiseach Enda Kenny TD, together with Domhnal Slattery, Avolon CEO; Eamonn Brennan, Chief Executive of the Irish Aviation Authority; and Brigadier General Paul Fry, GOC of the Air Corps at an event at Casement Aerodrome, Baldonnel, Co. Dublin.
In April 2016, Europe's first MSc in Aviation Finance was launched at the UCD Michael Smurfit Graduate Business School. Avolon, together with a number of other leading aircraft leasing firms, is an industry partner of the new master's degree.
The course is intended to sustain Ireland's position as the world's largest centre for aviation finance and leasing.
In October 2015, as part of its corporate and social responsibility programme, Avolon announced two initiatives with the Royal Hibernian Academy (RHA): The Avolon Global Studio and Avolon Youthreach Programme. The programme was launched by Domhnal Slattery, Avolon CEO; Mick O'Dea RHA President; and Patrick T. Murphy, RHA Director.
Avolon Global Studio: With Avolon's support the RHA made a global call-out for an artist who will be awarded a 6-month studio placement, at the RHA during 2016, 2017 and 2018 with the first residency commencing in July 2016. This studio residency offers a once in a lifetime opportunity for an international, emerging artist to raise their profile on a global platform and to develop their practice within the environs of one of Ireland's leading contemporary art organisations. In April 2016 Avolon and the RHA announced the first participant of the Avolon Global Studio Programme would be Colombian artist, Adriana Salazar. The second artist to join the Avolon Global Studio Programme in 2017 was Iranian artist, Jinoos Taghizadeh. The third artist to receive the Avolon Global Studio Award will be selected from India.
Avolon Youthreach Programme: Collaborating with the national Youthreach scheme, the RHA will invite 6 young students, selected from submissions from the 160 Youthreach Centres nationwide, to participate in four workshops to increase their art skills, introduce them to visiting art galleries and art colleges and offer basic tools of criticism. As well as developing practical skills, by working alongside a practicing artist, this opportunity will offer students the ability to explore the opportunities and challenges of being a professional artist in Ireland today.