Ryan-backed jet leasing firm TippAero is targeting a $5 billion fleet within five years
TIPPAERO, the aircraft leasing startup backed by Declan Ryan’s Irelandia investment vehicle, which will focus on new-generation single-aisle jets, hopes to close financing by spring that will allow the company to complete its first aircraft purchases by for the summer, according to his CEO. Donald Boylan.
e told the Irish Independent that by the end of its first year, TippAero hopes to have a fleet of about 25 jets. It will focus on Boeing 737 Max and single-aisle Airbus Neo jets, some acquired through sale-and-leaseback deals with airlines.
Mr. Boylan said TippAero hopes to have $1.5 billion in equity within five years, which combined with debt will reach about $5 billion in committed capital and represent a “very significant deal.”
the Irish Independent first revealed last year that TippAero was created by Mr Ryan – a son of Ryanair co-founder Tony Ryan – and Mr Boylan.
Speaking of Irish Independent Speaking on the sidelines of Airfinance Journal’s aviation conference in Dublin, Mr Boylan – a veteran of the aviation and aircraft leasing industry – confirmed that TippAero is in advanced discussions with a number of potential financial institutions.
“We were traveling with our investment banks and it was kind of a rollercoaster ride,” said Mr. Boylan. “We came to the altar with a bunch of guys and we’re doing a happy dance with five or six others. Every single one of them says they like the team, they like the prospects.”
He said the banks’ final decision – given that interest rates have returned to more normalized levels – is where to put their dollars.
“We’ll know by March or April,” he said, adding that TippAero has already closed aircraft deals once funding is secured.
“We’ll be doing deals in the summer and fall,” he said. “These deals are already there. We already have some mandates to do some things for airlines.”
He said the TippAero team has “strong relationships” with a number of airlines and has been able to “keep things simmering” as they have raised funds.
He said that even without securing the funds needed to start a leasing business, TippAero could build a successful commercial or consulting services business.
“Clearly we would like to have a balance sheet with a significant amount of capital,” said Mr. Boylan.
He said TippAero intends to keep its growth on a linear path after acquiring the first 25 aircraft.
“If you start saying you’re going to go from 25 to 90 planes in year two, you’re going to underperform,” he said.
He said TippAero could reach a “fork in the road” in three years where it brings highly rated corporate investors into the business, “or, quite frankly, sells the business.”
Mr. Ryan’s investment vehicle Irelandia supports TippAero. Irelandia owns a majority stake in Viva Air, the Colombian low-cost airline, while Irelandia controls the Viva Air Group.
Mr. Boylan is a former Chief Executive of China’s CBD Aviation Lease Finance and has also served as CEO and Vice Chairman of Bohai Leasing and CEO of Hong Kong Aviation Capital. He is also non-executive director of Vietnam’s VietJet Air.
https://www.independent.ie/business/ryan-backed-tippaero-jet-leasing-firm-aims-for-5bn-fleet-within-five-years-42296462.html Ryan-backed jet leasing firm TippAero is targeting a $5 billion fleet within five years