Avia Solutions Group secures US private equity funding

Cyprus-headquartered Avia Solutions Group (ASG) has secured a $354 million structured equity investment from Certares Management, a private equity firm based in New York, with the deal to close in the fourth quarter of 2021. The funding will fuel “strategic acquisitions, capital expenditures and general corporate purposes,” according to a press release on the deal. The holding company’s assets already cut across a diverse cross section of aviation businesses, and include multiple subsidiaries with heavy exposure to freighter leasing and operations. [caption id="attachment_416590" align="alignright" width="560"] Bluebird Nordic, which ASG acquired in early 2020, is on the cusp of taking its first 737-800BCF. (Photo/AviaAM Leasing)[/caption] The partnership follows a recent string of investments by ASG in the past year or so into newer narrowbody types like A321-200 and 737NG freighters, as well as its cargo activities more generally. Notably, Bluebird Nordic, which it acquired in early 2020, will soon take delivery of the first of twenty-five 737-800Fs as part of a multi-year growth plan . The Iceland-based carrier currently only operates one 737-300F and seven 737-400Fs on behalf of express customers but could end up with one of the largest 737NG freighter fleets. Bluebird told Cargo Facts that it will source most of its 737-800Fs from AviaAM Leasing, ASG’s leasing company. AviaAM Leasing previously confirmed to Cargo Facts that it has committed to five 737-800BCF conversions in 2021 and could add up to five more in 2022 . At the same time, SmartLynx, which until earlier this year was a passenger-only ACMI and charter carrier, now flies an A321-200PCF in ACMI service for DHL Express and will soon add an A321-200P2F. The carrier has at least four to eight more A321Fs on the way. ASG also owns the U.K.-based charter broker Chapman Freeborn and Magma Aviation, which ACMI leases four 747-400Fs from Air Atlanta Icelandic and added an Atlas Air-operated 747-400F (36135) in May 2021. Prior to the closing of the equity investment, Founder and Chairman Gediminas Ziemelis held shares valued at 75.99% of ASG, while Deputy CEO Vaidas Barakauskas’ stake was valued at 15.8%. Other executives and investors held the remaining 8.21% stake. Overall, ASG has more than 7,000 employees around the world. Apart from mostly companies in the leisure and hospitality industries, Certares’ only aviation-related investments are in Brazilian airline Azul and LATAM Airlines Group, according to its website. The company could not be reached for comment on the importance of ASG’s growing cargo presence. Investor optimism in freighter aircraft remains strong. Earlier this year, Ireland-headquartered ASL Aviation Holdings secured up to $125 million in financing under a debt facility with Goldman Sachs . Cargo Facts Symposium, taking place LIVE October 25-27 at the Wynn Las Vegas, is the essential event for stakeholders in the air cargo industry. Learn more and register at www.cargofactssymposium.com .

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