ABL Aviation, the global independent aircraft investment management firm, is pleased to announce the closing of one new Airbus A321neo aircraft on long-term lease to Wizz Air, Europe’s fastest growing and most environmentally sustainable airline globally*, financed through a Japanese operating lease with call option (JOLCO) structure. This aircraft delivery is the first of three to be delivered under the same structure this year.
This transaction, the first JOLCO that ABL Aviation has completed with Wizz Air, was efficiently managed on behalf of the Company’s Japanese partner. ABL Aviation arranged the equity on the transaction while Crédit Agricole CIB arranged the debt, providing Wizz Air with 100% financing.
The transaction incorporates sustainability-linked features structured by CACIB, as the terms of the financing are indexed on Wizz Air’s future achievements in respect of one ambitious sustainability-linked Key Performance Indicator (KPI), the achievement of the CO2 emissions target value for passenger transportation performance (RPK: revenue passenger kilometers) of Wizz Air.
ABL Aviation CEO Ali Ben Lmadani commented: “We are delighted to support Wizz in its growth through the financing of its new aircraft. ABL Aviation’s independence allows us to offer flexibility to airlines to select the debt structure and lender that provides the best economic outcome. On this transaction, we were pleased to work with Crédit Agricole CIB for the first time to combine our respective debt and equity offers into the optimal solution for Wizz. We look forward to closing a further two aircraft in the coming weeks as part of this mandate.”
The deal is an indication of the growing airline demand for newer, more fuel-efficient narrowbody aircraft. Offering a 20% reduction in fuel burn and 50% less noise emissions compared to older aircraft of a similar category, the A320neo, and its derivative aircraft family members are the world’s best-selling single-aisle aircraft with over 6,500 orders from over 100 customers since its launch in 2010.
Wizz Air has achieved its market-leading sustainability position by continued investment in innovation and operating the latest technology aircraft in the most efficient way. Wizz Air is an all-Airbus operator, with 180 A320 Family aircraft flying all around Europe and beyond and more than 360 to be delivered. With more than 300 of the larger A321neo aircraft on order, Wizz Air one of the biggest Airbus customers worldwide of the type.
* According to the CAPA – Centre for Aviation Awards for Excellence 2022.