FLY Leasing Ltd. on Aug. 30 completed the transfer of nine additional aircraft, pursuant to the share purchase agreement among FLY Leasing; its unit Fly Aladdin Holdings Ltd.; AirAsia Group Bhd., as successor to AirAsia Bhd.; and its unit Asia Aviation Capital Ltd.
As of Aug. 30, 22 Airbus A320-200 aircraft on operating leases to AirAsia Bhd. and its affiliated airlines have been transferred, in partial completion of FLY Leasing's previously announced acquisition of a major portfolio of aircraft and engines from Asia Aviation Capital.
FLY Leasing expects to complete the transfer of the remaining assets in the portfolio, comprised of 11 additional Airbus A320-200 aircraft, along with seven engines on operating leases, to AirAsia Bhd. and its affiliated airlines, and one Airbus A320-200 aircraft on operating lease to a third-party airline, by the end of the third quarter.
FLY Leasing will also acquire 21 Airbus A320neo family aircraft on operating leases to AirAsia Group as the aircraft are delivered from Airbus between 2019 and 2021, and the company will have the option to purchase 20 Airbus A320neo family aircraft, not subject to lease, which would be delivered by the manufacturer starting in 2019.
In addition, FLY Leasing on Aug. 30, pursuant to the July 18 subscription agreement among FLY Leasing, AirAsia Group and AirAsia Bhd., issued 3,333,333 of its common shares, valued at $15 per share, in the form of American depositary shares to AirAsia Group in connection with the closing of the additional transfer. The issued shares are subject to lock-up restrictions until 2021, as well as voting and standstill undertakings until AirAsia Group and its affiliates own less than 10% of FLY Leasing's outstanding shares. FLY Leasing has agreed to register the issued common shares for resale with the SEC.