Avolon Holdings Ltd.

Overview Key strengths Key risks One of the largest aircraft lessors in the world, with a well-diversified fleet and customer base. Slowing economic growth could constrain the recovery in global air traffic. Strong order book with modern technology and popular, in-demand aircraft. Disruption in the capital markets and risk of higher interest rates will increase borrowing costs. Strong liquidity, with about $6.9 billion of borrowing capacity under its various facilities. Uncertainty over eventual ownership, given that it is currently 70% owned by Bohai, which is 40% owned by a special service trust (which took over from HNA Group during its reorganization), and 30% by Orix Aviation Systems Ltd. We believe these factors will continue to drive lease rates and aircraft

...S&P Global Ratings expects Avolon Holdings Ltd. (Avolon) to benefit from robust demand for aircraft and supply chain constraints in the industry over the next year. We believe these factors will continue to drive lease rates and aircraft values upward, benefiting Avolon's and other lessors' operations over the next few years. In our view, strong demand for aircraft will persist over the next few years as airlines continue to focus on renewing and expanding their fleets, mainly to capture steady growth in passenger air travel and improve fuel efficiency. At the same time, original equipment manufacturer...

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