Q Aviation Explores Strategic Options with Deutsche Bank Securities

Strategic Insights -

Q Aviation, a leading independent aircraft leasing company, is exploring various strategic options to monetize its investment in the company. The move comes as the aircraft leasing industry experiences strong demand, driven by record levels of worldwide air travel.

Key Takeaways:

  • Q Aviation has retained Deutsche Bank Securities to explore strategic options for its principal shareholder, Q Investments, to monetize its investment in the company.
  • The company's high-quality portfolio of 53 Boeing and Airbus aircraft is valued at approximately $1.2 billion, with lease agreements spanning international and domestic airline companies, including United Airlines, US Airways, and Northwest Airlines.
  • Q Aviation's management team, led by Greg May, has developed exceptional relationships with major U.S. airlines through a disciplined acquisition strategy.
  • Worldwide air travel demand is at record levels, with U.S. airlines filling an average 77.6% of their seats on domestic and foreign flights through June 2006, up from 75.5% in 2004 (Air Transport Association).
  • The company expects to start the bidding process shortly and anticipates a year-end closing for the transaction.
  • Q Investments is a leading private investment firm managing several billion dollars in assets worldwide.

Statistics:

  • Q Aviation's portfolio consists of 53 aircraft, appraised at approximately $1.2 billion.
  • The company's lease agreements span 77.6% of domestic and foreign flight capacities (Air Transport Association).
  • U.S. airlines filled an average 75.5% of their seats on domestic and foreign flights in 2004, increasing to 77.6% by June 2006 (Air Transport Association).
  • Q Aviation expects to complete the transaction by the end of the year.

Sources:

  • Q Aviation press release (date not specified).
  • Air Transport Association (ATA). "Air Travel Fares Trod Water in June as Airlines Reap Benefits from Increased Passenger Demand; Domestic Air Travel Reaches a New High" (no date specified).
  • Q Aviation's portfolio value is based on an appraisal by an undisclosed party (no date specified).