Irish Aircraft Lessor Goshawk Maintained 77% Collection Rate In 2020 On Planes Leased To Its Airline Customers
Irish aircraft lessor Goshawk has said that it maintained a 77% collection rate in 2020 on planes leased to its airline customers.
As reported by The Irish Independent, Goshawk Aviation CEO Ruth Kelly said that despite a challenging year due to the COVID-19 pandemic, the firm recorded an operating profit for the year and is "well positioned" to benefit from an anticipated recovery in travel, including as a possible consolidator in the leasing sector.
Kelly reportedly said, "Should suitable M&A opportunities arise, that would be on the radar."
On The List Of The Global Lessors
Goshawk's takeover of rival Sky Leasing and its 51 aircraft in 2018 reportedly put it on the list of the top 10 global lessors.
Expecting A Rapid Bounce-Back
Citing a recovery in US domestic travel and signs of demand in Europe, Kelly reportedly told The Irish Independent that she is expecting a rapid bounce-back in air travel post-COVID, with limited lingering impact on public attitudes following the lifting of restrictions.
Adjusted Operating Profit
Kelly was reportedly speaking after the Dublin-headquartered firm announced its financial results for the year that ended on December 31, 2020, which reportedly reveal an adjusted $30 million (€25.6 million) operating profit.
Goshawk reportedly owns 162 aircraft and manages an additional 20 craft for other owners, which are reportedly leased to 65 airlines across the globe.
Kelly reportedly said that the firm’s fleet reportedly of mostly consists of narrow-body airliners that are under five years old, with just one aircraft currently out of lease.
Goshawk's total lease revenue in 2020 reportedly amounted to $763 miilion. Net of provisioning for trade receivables, that reportedly represented 96% of 2019's total.
Working Closely With Customers And Lenders
Kelly reportedly said that the firm worked closely with customers impacted by lockdowns including working out case-by-case deals for airlines that sought near-term rent relief at points during last year, and that seven of its aircraft across four airline customers were subject to some form of formal restructuring proceedings during the period.
Kelly reportedly said that Goshawk also worked closely with its own approximately 100 lenders to bring operations through the pandemic.
Strong Balance Sheet
Kelly reportedly said that Goshawk will emerge the pandemic with a strong balance sheet, including total available liquidity of $1.5 billion held at year end, giving more than 2.5 times coverage of contractual commitments and debt maturities over the next year.
Assets And Orders
Goshawk reported had total aircraft assets of $7.3 billion at year end and a long-term order book of 40 aircraft, comprised solely of new technology narrow-body aircraft, due to be delivered from 2023 onwards.
The firm's own debt is reportedly a mixture of 60% unsecured and 40% secured finance, with total unencumbered assets of $4.5 billion.
Goshawk is owned by Chow Tai Fook Enterprises (CTFE) and stock market-listed NWS, the former of which is privately owned by the family of the late Hong Kong billionaire Cheng Yu-tung, and is reportedly a major shareholder in NWS.
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