UPDATE: RBS Aviation Capital Places $7.6 Bln Aircraft Order

21st Jul 2010 08:37

(Adds detail, context) By Kaveri Niththyananthan Of DOW JONES NEWSWIRES FARNBOROUGH, England (Dow Jones)--RBS Aviation Capital, one of the world's largest aircraft lessors, said Wednesday it has ordered a total of 95 narrow-body aircraft from Airbus and Boeing Co. (BA), in a deal valued at $7.6 billion at list prices. It is the latest order from leasing companies that have dominated this year's Farnborough International Air Show. Other substantial orders have come from Ireland-based start-up aircraft-leasing company Avolon and Air Lease Corp., formed by leasing pioneer Steven Udvar-Hazy. The RBS Aviation Capital order consists of 52 Airbus A320-family narrow-body aircraft and 43 Boeing 737-family narrow-body aircraft. RBS Aviation Capital is a unit of Royal Bank of Scotland Group PLC (BAY.LN), which is majority-owned by the U.K. taxpayer. It already has Boeing and Airbus aircraft. It recently received its 145th plane belonging to the Airbus A320- family and its 125th plane of the Boeing 737-family. "Both of these aircraft types have been instrumental in helping us to create a highly successful global business that has pioneered the strategy of owning and leasing narrow body, commodity aircraft types that are liquid, investor-friendly and easily tradeable," RBS Aviation Capital Chief Executive Peter Barrett said at the trade show. Barrett added he "remains very positive on the outlook for both RBS Aviation Capital and the wider aircraft leasing sector." The 95 aircraft will be delivered between now and 2015 and will be leased to RBS Aviation Capital's airline customers across the world. All of the 2010 deliveries have been placed. RBS designated the unit, which provides a range of aircraft financing services, including debt and operating leases, as a non-core business in early in 2009 and soon after appointed Goldman Sachs Group Inc. (GS) to consider options that included a sale. Earlier this year, people close to the matter told Dow Jones Newswires its bank owner had put the sale on ice until the market recovers and it could command a higher price. RBS Aviation Capital, built through a 2001 acquisition of a small advisory firm. -By Kaveri Niththyananthan, Dow Jones Newswires; 4420 7842 9299; [email protected] (END) Dow Jones Newswires July 21, 2010 03:37 ET (07:37 GMT)