Vallair looks to sale-leasebacks during COVID-19

[caption id="attachment_413635" align="alignright" width="460"] Vallair is the launch customer for A321 freighter conversion programs by both EFW and 321 Precision Conversions. (Photo: Vallair)[/caption] The COVID-19 crisis is providing Luxembourg-based Vallair an opportunity to grow its portfolio of A321s and further its strategy of specializing in freighter-converted narrowbodies. Vallair told Cargo Facts it is actively exploring sale-leaseback deals with A321 operators, with a view to converting the aircraft into freighter configuration at a later stage when conversion slots open. The financial states of even major airlines are in question as a result of the pandemic, and many are urgently looking to raise cash. Lessors can step in, help inject some liquidity into the carriers, and acquire aircraft at more attractive prices. Cathay Pacific , for example, sold six of its 777-300ERs to BOC Aviation in March and is leasing them back on a long-term basis. Vallair said this could be the break those in the conversion market had been hoping for, at least when it comes to feedstock acquisition. An additional factor is the recertification and ungrounding of the 737 MAX, which could begin to release more narrowbodies like older A321-200s later this year. Vallair is betting big on the A321F, having signed on as the launch customer for EFW ’s and 321 Precision Conversions ’ programs. The first A321F converted by EFW (835, ex-Onur Air), which obtained the supplemental type certificate (STC) for its A321P2F program from the European Union Aviation Safety Agency (EASA) in February , is on track to be redelivered to launch carrier Qantas from Singapore (XSP) later this year. The next few frames are likely to be converted by EFW at the ST Aerospace (Guangzhou) Aviation Services facility in Guangzhou (CAN) . 321 Precision Conversions, a JV between Precision Aircraft Solutions and Air Transport Services Group ( ATSG ), is working on its first aircraft (891, ex-Air Mediterranee) in Orlando Sanford (SFB) and expects to receive its STC later this year, after which redelivery can occur and the next Vallair aircraft can be inducted. In the longer term, Vallair hopes between EFW and 321 Precision Conversions to convert eight to ten A321s every year. Although Vallair has several 737-400Fs in its portfolio, it said it will not convert any more 737 Classics and is currently not interested in NG conversions. The company confirmed the two 737-400Fs previously leased to Brazil-based Connect Cargo (26605 and 27087) and grounded in February have since been repossessed. Vallair said it expects to place them with new operators relatively soon, given the current high demand for freighter capacity. While Cargo Facts Asia 2020 will be a virtual event, the unparalleled networking and continuing education opportunities remain, with the best and brightest minds addressing the most pressing industry issues for Asia Pacific — including those around COVID-19. To register and for more information, visit www.cargofactsasia.com .

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Vallair looks to sale-leasebacks during COVID-19

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