Dubai
Novus Aviation Capital, the Middle East-based leasing and financing company, expects its portfolio to edge to the $2 billion mark this year with a number of “landmark transactions” under discussion, a company executive has said.
Novus Aviation’s portfolio has seen steadily grown over the last 12 months from when it hovered around $1 billion. Its portfolio is currently valued around $1.7 billion, according to Hani Kuzbari, Executive Vice President, who said in a phone interview on Thursday that finance is largely being driven by strong airline passenger growth numbers.
International passenger growth was up 8.5 per cent in April compared to the same month a year earlier, according to the latest data from the International Air Transport Association (IATA). Capacity jumped 6.9 per cent.
Novus Aviation has been involved in a number of aircraft financing deals so far this year including Airbus A380s at Emirates and A330s at Malaysia Airlines, however before the disappearance of flight MH370.
“For the month to come we’re in active discussions for financing in the region, Europe, Asia and the Americas,” Kuzbari said.
Kuzbari forecasts $8 — $10 billion of aircraft to be delivered in the Middle East this year and he expects that number to increase to $12 — $13 billion next year.
“We’re definitely seeing growth opportunities,” Kuzbari said.
The big three Gulf carriers, Emirates, Etihad Airways and Qatar Airways are driving a lot of the subsequent demand for financing in the region, however, other carriers are also stepping into the fold.
“We are seeing Kuwait [Airways] and Saudia (Saudi Arabian Airlines) quite aggressively try to catch up with the very active airlines in terms of products … and fuel-efficient aircraft,” Kuzbari said.
In April, Middle East carriers posted an 18.6 per cent increase in demand compared to the same month a year earlier, according to IATA. Capacity rose by 13.1 per cent.
