Dómhnal Slattery, founding chairman of jet leasing company Avolon, will step down as chief executive later this year.
r Slattery founded the company 12 years ago after a career in aviation finance at Guinness Peat Aviation and GECAS.
He also founded his own consulting and investment firm, International Aviation Management Group, and private equity firm Claret Capital, which he sold to investors.
He is leaving the company to “pursue a number of other interests in a non-executive capacity,” Avolon said. Mr. Slattery is non-executive chairman of UK company Vertical Aerospace, with which Avolon signed a $2 billion deal for 500 electric air taxis last year. He is also co-owner of a pub in Liscannor, Co. Clare.
One of Avolon’s other co-founders, Andy Cronin, the current President and Chief Financial Officer, will assume the role of CEO-elect.
“I am proud to retire from Avolon, leaving the company in a strong financial and competitive position, and in the hands of a leadership team that I know will continue to excel,” said Mr. Slattery.
Chief Commercial Officer Paul Geaney, also a founding member of the firm, will assume the office of President effective immediately.
The leadership change comes a year after Avolon announced the resignations of former President and Chief Commercial Officer John Higgins and former Chief Operating Officer Tom Ashe.
Both were founding members of the company.
Since its founding in 2010, Avolon has grown from a private equity-backed start-up to the second-largest aircraft leasing company in the world with assets in excess of $30 billion.
At the end of June, it owned and managed a fleet of 591 aircraft, with orders and commitments for 260.
According to second-quarter results, the company has 146 airline customers in 62 countries.
For the six months ended June, Avolon posted a net profit loss of $173 million (EUR 171 million), which increased to a profit of $86 million (EUR 85 million) excluding Russia.
The firm has suspended operations in Russia since President Vladimir Putin declared war on Ukraine in February and has had 10 planes based in the country since March.
Avolon currently has total assets of just under $30.5 billion (EUR 30.1 billion), down $391 million from its full-year 2021 valuation.
For the three months ended June, Avolon recorded $539 million in rental income and completed 54 rental transactions.
It has signed letters of intent for the sale and leaseback of 13 aircraft and placement of 31 aircraft. It has sold two of its own aircraft and entered into binding sales agreements for 30 aircraft.
Avolon generated $305 million in net cash from operations.
It ended the quarter with over $16 billion in unencumbered assets and a net leverage of 2.4.
Rating agency Fitch has confirmed Avolon’s credit rating of BBB- and a stable outlook.
At the end of June, the company had total available liquidity and committed sales of $6.7 billion, including $4.9 billion of undrawn credit facilities.
Avolon has also extended the maturity date of a $745 million revolving credit facility from 2024 to 2027.
Air travel has been recovering since the pandemic, although first-quarter passenger numbers at Ireland’s five main airports were still a fifth below pre-pandemic levels.
Since then, strikes and staff shortages have wreaked havoc at Europe’s airports, with airlines including Aer Lingus, EasyJet, Lufthansa, British Airways and Wizz Air canceling thousands of flights and airports stepping in to limit traffic.
CEO-elect Andy Cronin said the recovery and Avolon’s “strong” liquidity and order book underpins the company’s “confidence” over the medium term.
“The recovery in demand has been met with operational challenges at airlines and airports, but we are seeing broad-based demand for new and used aircraft as passengers look to get back in the skies,” Mr. Cronin said.
https://www.independent.ie/business/jobs/founder-and-ceo-of-aircraft-giant-avolon-to-step-down-41868618.html Founder and CEO of aircraft giant Avolon to step down