Porter Airlines Partners with GOAL Aircraft Leasing in Sale-Leaseback Deal for Two Embraer E195-E2 Jets
GOAL Aircraft Leasing (GOAL), a leading global aircraft leasing and asset management company, has announced a significant partnership with Porter Airlines through a sale and leaseback agreement for two Embraer E195-E2 aircraft. This strategic transaction not only highlights GOAL’s capability in crafting bespoke leasing solutions for prominent airlines but also supports Porter Airlines in optimizing its fleet and financial resources. Under the terms of this agreement, Porter Airlines will operate the Embraer E195-E2 aircraft under long-term lease arrangements, reinforcing its commitment to providing a superior travel experience for passengers while achieving operational efficiencies.
The Strategic Value of Sale and Leaseback Agreements
Sale and leaseback agreements have become a critical tool for airlines to unlock capital tied up in assets while maintaining operational control of their fleet. By entering into this arrangement, Porter Airlines can enhance its liquidity and allocate resources to other growth-focused initiatives, such as expanding its route network and improving customer service offerings. GOAL’s tailored approach ensures that these agreements align seamlessly with the operational and financial strategies of its airline partners, providing them with the flexibility to navigate an increasingly competitive aviation landscape.
The Embraer E195-E2: A Next-Generation Aircraft
The Embraer E195-E2 is renowned for its advanced features, fuel efficiency, and passenger comfort. As Porter Airlines incorporates these aircraft into its fleet, the airline gains the ability to serve longer routes, particularly within North America, while reducing operational costs. This addition marks a pivotal step in Porter’s growth strategy, enabling it to offer an enhanced travel experience that meets the evolving needs of its customers. The E195-E2’s next-generation technology also supports the airline’s sustainability goals by reducing carbon emissions per seat mile compared to older aircraft models.
Julian Low, Vice President of Corporate Development at Porter Airlines, expressed enthusiasm about the collaboration: “The Embraer E195-E2 is an exceptional aircraft, driving the growth of our network across North America. The leasing industry continues to show strong interest in this model, and we look forward to working with GOAL over the long term.”
Expanding Partnership Between GOAL and Porter Airlines
The sale and leaseback agreement for the Embraer E195-E2 aircraft is not the first collaboration between GOAL and Porter Airlines. The two companies recently entered into a finance lease agreement for three Dash 8-400 aircraft, further solidifying their partnership. These initiatives underscore the mutual commitment of GOAL and Porter Airlines to operational excellence and customer satisfaction. By leveraging GOAL’s expertise in aircraft leasing and asset management, Porter Airlines is well-positioned to continue its growth trajectory and maintain its reputation as a leading regional airline in North America.
Christian Schloemann, CEO of GOAL, highlighted the significance of this partnership: “We are pleased to deepen our relationship with Porter Airlines and demonstrate our ability to offer flexible and competitive leasing solutions for leading aircraft such as the Embraer E195-E2. We are proud to contribute to the expansion of Porter Airlines’ fleet and the strengthening of its leadership position in North America.”
Contribution to APF 5 KGAL Fund Portfolio
The two Embraer E195-E2 aircraft involved in this agreement are part of the growing APF 5 KGAL fund portfolio, a testament to GOAL’s commitment to delivering value to its partner airlines and institutional investors. This fund reflects GOAL’s strategy of investing in high-quality, next-generation aircraft that meet the demands of modern airlines. By integrating these aircraft into its portfolio, GOAL enhances its ability to provide innovative leasing solutions while ensuring stable returns for its investors.
Legal and Advisory Support
The execution of this agreement was supported by a team of seasoned legal and financial advisors. Watson Farley & Williams (London) acted as lead counsel to GOAL, ensuring that the transaction complied with all relevant regulatory and contractual requirements. On Porter’s side, Parr Brown Gee & Loveless provided legal counsel, while Seabury Securities LLC served as advisor and placement agent. This collaborative effort underscores the importance of robust legal and financial frameworks in facilitating successful sale and leaseback agreements.
The Broader Implications for the Aviation Industry
This partnership between GOAL and Porter Airlines exemplifies the growing trend of sale and leaseback transactions in the aviation industry. As airlines face mounting pressure to manage costs and reduce environmental impact, leasing arrangements offer a practical solution. By partnering with asset management companies like GOAL, airlines can access modern, fuel-efficient aircraft without the upfront capital expenditure typically associated with direct purchases.
Moreover, the Embraer E195-E2’s strong appeal among lessors and airlines alike reflects a broader shift towards more sustainable and cost-effective fleet solutions. The aircraft’s ability to serve regional and long-haul routes efficiently positions it as a valuable asset in the portfolios of both airlines and leasing companies.
About GOAL Aircraft Leasing
GOAL is a joint venture between KGAL GmbH & Co. KG, one of Germany’s leading independent investment and asset managers with an investment volume of around EUR 16.0 billion, and Deutsche Lufthansa AG, one of the world’s leading carriers. GOAL currently owns and manages 68 aircraft with an investment volume of around USD 3 billion. It has extensive experience in its core business of operating leasing, technical asset management and aircraft remarketing, and has demonstrated its professional know-how for over 25 years.
About Porter Airlines
Since 2006, Porter Airlines has been enhancing the economy class experience for every passenger by ensuring a warm welcome with style, care and charm. Its fleet of Embraer E195-E2 and De Havilland Dash 8-400 aircraft serves an extensive network of North American destinations from Eastern Canada.