Hong Kong Aviation Capital (HKAC), an investor in global aviation finance has announced the appointed Richard Cherney as head of commercial and technical. Richard Cherney has already started with the company and is based at its  Hong Kong office. Cherney is a member of the senior executive committee and responsible for global leasing activities and technical management. He comes to HKAC from his position as executive vice-president of Aviation Capital Group (ACG), a commercial aircraft leasing and asset management company based in California.

At ACG, Richard was responsible for the sales and marketing as well as the asset management functions, overseeing a fleet of more than 400 owned, managed and ordered aircraft. Before joining ACG, Richard was managing director, at American Airlines where he led the group responsible for developing more than $10bn of aircraft acquisition and disposal strategies. Prior to this, he held senior positions with two Canadian airlines, and also has pilot accreditation from both the United States and Canada.

Mathis Shinnick, Chief Executive Officer, Hong Kong Aviation Capital said: "With the addition of Richard we are fulfilling our promise to strengthen and build upon our existing management team.  Our strong team has helped us attract key people. Richard brings with him great leadership qualities and aviation experience that will prove invaluable to HKAC, and our plans for further global expansion."

Shinnick continued: "Rich's 21 years of experience in aviation, as both a pilot and businessman, is a winning combination that will help us to achieve both our short and long term business goals."

HKAC leases three Airbus 320 to IndiGo Airlines

HKAC recently announced new leases of three new Airbus 320 aircraft to IndiGo Airlines of India.  The leases will start on delivery of the aircraft from Airbus to IndiGo in 2011. HKAC also agreed to extend the leases of four existing A320 aircraft to IndiGo.

The three new A320s will be delivered at manufacturer list prices totaling approximately $200m, and will be on lease to the airline for a period of six years.  HKAC is closing the purchase of the new aircraft with support from significant Chinese banking and financial institutions.  Upon delivery of the new aircraft, HKAC will have a total of ten A320s on lease to IndiGo.  The transaction expands its existing 68 aircraft portfolio with assets totalling approximately $3bn. 
HKAC acquired the Allco aviation portfolio in January 2010 and since then has brought on key senior hires, and adopted a new business plan, to leverage its significant capital position by providing liquidity to operators. It says its target is to hit the big time as a top five operating lessor.

Ten aircraft with IndiGo

Mathis Shinnick said: "The announcement of this deal, coming so quickly after the transition of HKAC's business model, demonstrates HKAC's strong ambitions in the aircraft leasing business and is an important step in the company's continued development and global expansion."

"We are delighted to have completed yet another transaction with IndiGo as one of their largest lessors.  With the completion of this deal, HKAC will have ten aircraft on lease to Indigo, demonstrating our commitment to the airline," Mr. Shinnick said.

He added: "This transaction demonstrates our belief in the business model of IndiGo and its continued success.  We believe IndiGo is a very well-run airline in India, as evidenced by its proven profitability, strong operating metrics, and balance sheet stability. We believe this deal will be very positive for HKAC, its shareholders, and the airline."
"HKAC plans to continue expanding our global presence and building our fleet by actively seeking business with top-tier lessees across the world," he said.

Optimism in the Indian aviation market

Mr. Bharat Bhise, CEO of Bravia Capital Partners said: "We are extremely optimistic about the Indian aviation market.  Following the 2008 downturn, India has seen one of the strongest rebounds globally and current demand levels and load factors are the highest ever. IndiGo has set the standard for the LCC space in India by profitably running an airline despite daunting hurdles of high costs primarily as a result of poor infrastructure."

"In the next year IndiGo will add 18 more aircraft over their current base increasing their market share of the Indian market from 11.7% in 2008 to almost 16% today.  As a shareholder of HKAC, we are pleased by the announcement of this transaction and look forward to the company completing more transactions in India and globally," Mr. Bhise said.
HKAC’s shareholders include HNA Group Co., Ltd., China and an affiliate of Bravia Capital, New York.   

It acquired the Allco aviation portfolio in January 2010 and since then has brought on key senior hires, and adopted a new business plan, to leverage its significant capital position by providing liquidity to operators. It says its target is to hit the big time as a top 5 operating lessor.