Wizz Air closes sale and lease back transaction for four A320 aircraft with Hong Kong Aviation Capital
February 10, 2011
Wizz Air and Hong Kong Aviation Capital (HKAC) announced the closing of sale and lease back transaction for two new Airbus A320 aircraft, to be delivered in March 2011 and the closing of a pre-delivery financing and sale and lease back transaction for additional two new Airbus A320 aircraft, to be delivered in 1st Quarter of 2012. This is the first transaction between Wizz Air and HKAC.
The aircraft are included in the purchase contracts between Wizz Air and Airbus Industries for up to 107 A320 family aircraft. The aircraft will come with a single class configuration of 180 seats, consistent with Wizz Air’s unified A320 fleet, which is one of the most modern and youngest fleets in the region.
Under the terms of the transaction, HKAC will take ownership of the aircraft upon delivery from Airbus and Wizz Air will then lease them back from HKAC for an 11-year lease term. The deal allows Wizz Air to continue financing its impressive growth and also proves the robustness of its business model. It also allows HKAC to capitalize on the advantages of the long standing cooperation between Wizz Air and Airbus and positions itself well in the fast-growing air travel markets of Central and Eastern Europe.
József Váradi, Chief Executive Officer of Wizz Air said: “The deliveries of new Airbus A320 continue to support our leadership position in Central and Eastern Europe. We are pleased to add HKAC into our diversified financing portfolio.”
“With this transaction, we have successfully added great aircraft and an exciting new customer to our portfolio,” said Mathis Shinnick, HKAC’s Chief Executive Officer. “We look forward to expanding our relationship with Wizz Air as they continue their success story as one of Europe’s premier low-cost carriers.”
Wizz Air carried 9.8 million passengers in the last 12 months. The airline’s fleet currently consists of 34 Airbus A320 aircraft operating from 12 bases in Poland, Hungary, Bulgaria, Romania, Ukraine and the Czech Republic. The 13th base in Belgrade, Serbia and the 14th in Vilnius, Lithuania will commence in Spring 2011.
Hong Kong Aviation Capital (“HKAC”) is a diversified player in the aviation industry. HKAC is headquartered out of Hong Kong, with offices in Sydney and London. The firm invests in commercial aircraft leases and financial instruments, and also provides aircraft management and advisory services. HKAC’s mission is to prudently invest in the global transportation and infrastructure sectors for consistent and long-term returns, creating value for its investors and clients alike. HKAC has a highly capable team with skills and experience in both the financial industry and the management of aircraft assets. The company’s Web site can be found at www.hongkongaviation.com.