Singapore-based lessor evaluates A350 and 787 following change of ownership
Singapore Aircraft Leasing Enterprise (SALE) is planning major expansion after its purchase by Bank of China, which should see it more than double its portfolio over the next five years.
The acquisition last month came after 11 initial bids were whittled down to just two: Bank of China and Dubai Aerospace Enterprise. The former - which already had an aircraft financing portfolio valued at about $7 billion - paid $965 million in cash for full ownership of the Singapore-based company.
Speaking to Flight International after the transaction with Bank of China, SALE chief executive Robert Martin said: "We have a new owner who wants to grow the company. We will now grow the portfolio. Certainly you can assume we will be at least doubling the fleet over the next five years. We now have 76 in the portfolio."
Martin says that since its acquisition, SALE has already begun assessing offers for additional narrowbody aircraft from Airbus and Boeing and orders could be placed early this year. He also says that by the end of the first quarter, SALE will seek offers from the two manufacturers for mid-size widebodies - the Airbus A350 and Boeing 787.
"We may put some A330s into the mix as well, because now that the A350 has been pushed back so far, we may want to have product arriving earlier than the A350 is available," adds Martin.
SALE's existing portfolio largely comprises narrowbody Airbus A320s and Boeing 737s. Early last year it considered an order for widebody aircraft but shelved this when the four shareholders - Singapore Airlines, WestLB and two Singapore government investment arms - put it up for sale.
SALE's existing portfolio comprises 63 aircraft that it owns and 13 that it manages - more than 70% of them narrowbodies. It has 28 737-800s on firm order.
"More narrowbodies will certainly be happening," says Martin.
He says SALE may consider an order for widebody freighter aircraft as part of its request for proposals to Airbus and Boeing in the first quarter of 2007.
It currently has only one freighter in its portfolio - a 747-400F that it acquired through a purchase and lease-back deal.
Source: Flight International
