Seabury Securities advises Malaysia Airlines on the acquisition of the A330neo

LONDON – On Aug. 23, Seabury Securities disclosed that it was tasked with advising Malaysia Aviation Group, the parent company of Malaysia Airlines, in an agreement to purchase and lease Airbus A330-900neo aircraft. Seabury was granted a prestigious role in the airline’s advisory fleet and financial leadership in the process of acquiring and financing the aircraft.

The initial announcement of the proposed acquisition was reported by AviationSource recently, when it was first announced by aircraft manufacturer Airbus.

A330neo purchase and lease

The details of the acquisition relate to 10 A330neos which will be purchased directly from Airbus under a sale-leaseback agreement with Avolon. The remaining 10 aircraft must be rented directly from Avolon. The agreements also include 20 A330neo purchase rights.

These options will provide Malaysia Aviation Group with the flexibility to realize further potential and growth, and will be able to increase its fleet accordingly and in a timely manner.

Alexis Fekete, Managing Director of Seabury Securities said optimistically: “We are proud to have supported MAG in this very competitive selection process. We believe the comprehensive solution brought by Airbus, Rolls-Royce and Avolon offers a cost-effective replacement for the current A330ceo fleet, which will provide a solid foundation for the airline’s future regional operations.

Andy Cronin, Avolon CEO Designatesaid: “Today’s announcement builds on our longstanding relationships with industry leaders such as MAG, Airbus and Rolls-Royce, and we are delighted to partner with them to provide a unique portfolio solution that will support MAG’s operations and business growth.

“As the Asian aviation market continues to emerge from the pandemic, this A330neo transaction will help MAG renew its fleet and position it to capitalize on the market recovery.”

“The improved fuel efficiency and performance, as well as unit cost improvements of the A330neo compared to previous generation aircraft, will enable MAG to meet the growing demand for air travel in the region, strengthening its position as one of the leading carriers of choice in the Asia-Pacific market.

“As previously reported, we are seeing a rapid recovery in demand for our backlog slots for our new technology single-aisle and twin-aisle aircraft, and we are delighted to partner with MAG on this landmark transaction.”

Izham Ismail, Chairman and CEO of Malaysia Aviation Groupsaid: “After a thorough technical evaluation and a highly competitive process, in which Seabury played an instrumental role, we are delighted to have reached a strategic agreement with our partners on the renewal of our widebody fleet through the acquisition of these A330neos. ”

“The innovative, cost-effective and successful three-party approach provides a holistic solution for fleet owners that is financially viable for MAG as we secure a lower and stable cost base with backing finance assurance.”

About Malaysia Airlines

Malaysia Airlines is Malaysia’s national flag carrier and has a fleet of 81 aircraft, comprising mainly the regional workhorse Boeing 737 and widebody Airbus A330, and a handful of Airbus A350s for the route Kuala-Lumpur to London and selected destinations in Australia and Japan.

The airline is based at Kuala Lumpur International Airport and flies to 64 destinations in Asia, Oceania, the Middle East and domestically. Malaysia Airlines has been on an uneven road since 2014, after losing two Boeing 777s. The airline is now striving to reconcile its past and become a strong national airline again.

About Seabury Securities

Seabury Capital Group operates a range of advisory disciplines, ranging from finance, investment, banking, technology and software companies, with a strong focus on aviation, aerospace and defence. The company was established in 1995 and operated under the direction of founder John E. Luth.

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