Falko Regional Aircraft Limited (Falko) in 2020 acquired 23 aircraft, sold 16 aircraft and signed lease agreements or extensions relating to a further 27. As at 31 December 2020, Falko’s portfolio totalled 120 aircraft with 20 customers worldwide. In addition, one simulator and one engine were added to the portfolio in 2020.
Aircraft acquisitions focused on Embraer EJet and CRJ regional jets with E190, CRJ900 and CRJ1000s being added to Falko’s portfolio. This includes an aircraft sale and leaseback transaction that was concluded with Delta Airlines for eleven CRJ900s in June 2020. Commenting on the activity, Mark Hughes Falko’s Chief Commercial officer stated that: “2020 has been an extraordinary year for aviation. Despite the challenging market conditions, we’ve continued to invest in our sector during 2020 to develop and expand our portfolio with further acquisitions funded by the Falko Regional Aircraft Opportunities Fund II.
Covid-19 has had a material impact on global aviation with unprecedented reductions in air travel. We have been working with all our customers to assist them during this difficult period and we are seeing that regional air travel is the sector leading the recovery. A reflection of this is that we extended leases on 27 aircraft during the year with the EJet being the stand-out regional jet product. It’s also pleasing to have been able to continue to trade aircraft through 2020 with almost all our sales coming after Covid-19 had hit the aviation market.
We are optimistic about 2021 and we are seeing strong demand for all regional aircraft types. We are confident that there is substantial pent-up demand for air travel and we are hopeful that government imposed travel restrictions will start to be relaxed to once again permit mass air travel”.
Falko has acquired over 150 aircraft with a total value in excess of $2.5 billion since its expansion into all regional aircraft types in 2013. Falko’s strategy is focused on growing its portfolio of funds and aircraft under management and the continued development of products and services in support of its aircraft lease management activity. Falko was formed in July 2011 when funds managed by Fortress Investment Group completed the purchase of BAE Systems Asset Management and its associated 142 aircraft portfolio.