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Mid-Life Aircraft

  • Provide liquidity to an underserved market
  • Mid-Life aircraft are an attractive asset class due to high cost of new aircraft, and deferrals of new orders
  • Concentrate on in production 5-15 year old Boeing & Airbus passenger aircraft 
  • Focus on smaller, bespoke transactions

Air Funding is focused on providing financing solutions to entities purchasing Mid-Life commercial aircraft. We believe that this market is underserved due to ever-tightening banking regulations/capital requirements and a global financing emphasis on new delivery & very young aircraft. Air Funding originates and invests in senior secured unitranche loans backed by the best and most ubiquitous, in-production Boeing and Airbus aircraft families such as the Boeing 737 Next Generation, the Airbus A320 family (excludes A318), along with select Widebody types from each manufacturer.

 Mid-Life aircraft have become attractive investment opportunities for lessors and financial sponsors given the high cost of new aircraft, low fuel costs, and the continued growth in air traffic due to improving global demographics.

 We define “Mid-Life” as passenger aircraft between 5 and 15 years of age since delivery.  We estimate that there were over 6,800 Boeing and Airbus Narrowbodies delivered between 2002 and 2012. This represents roughly 29% of the current world fleet (23,500 per Boeing).

 Our focus is on smaller, bespoke transactions ($10 to $50 million) typically ignored by the investment banking and capital markets universe.

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