Falko Regional Aircraft (Falko), the regional asset manager and aircraft lessor, added seven aircraft to its portfolio during the third quarter of 2023, a mixture of CRJ900 regional jets and Q400 turboprops on lease to flag carriers, Air Canada, and Ethiopian Airlines. The aircraft were acquired on behalf of Falko’s managed fund, Falko Regional Aircraft Opportunities Fund II (Fund II).
Five aircraft were also delivered on operating leases, says Falko. These included the previously announced E170 aircraft delivered to UK carrier, Eastern Airways, three E190 aircraft delivered to South African carrier, Airlink and a further E190 delivered to a European carrier. In addition, lease extensions relating to one E190 and one ATR 72-600 were finalised. Falko also concluded the sale of one ATR 72-500.
Falko signed Letters of Intent relating to fifteen aircraft during the period, comprising the sale of three turboprop aircraft, placement on lease of three aircraft to two airlines and lease extensions relating to nine aircraft.
In total, Falko’s third quarter activity related to thirty separate aircraft transactions involving twelve customers located across various jurisdictions. The company stated that activity was weighted slightly towards regional jets with half of the transactions involving Embraer aircraft.
As at 30 September 2023, Falko’s portfolio totalled 270 aircraft on lease to 42 customers.
Commenting on Falko’s portfolio activity, chief commercial officer Mark Hughes, said: “We are delighted to be able to announce transactions relating to thirty aircraft in our portfolio during the quarter which is indicative of strong demand for all regional aircraft types. We are pleased to have added a further seven aircraft for Fund II, but the clear strength in the market has come from lease extensions and the signing of new leases, as airlines continue to seek capacity. Our third quarter activity involved customers from various jurisdictions with a significant number of transactions involving customers from Europe, Africa and South America as well as from North America and Asia, demonstrating the current global demand for regional aircraft.”