Posted on: 10 December 2018 by Kimberley Young
PT Wings Abadi, operating as Wings Air, has taken delivery of its fourth new ATR 72-600 turboprop aircraft on lease from regional specialist TrueNoord.
The leasing company has already integrated three aircraft into the Wings Air fleet in August, October and November this year, with this delivery marking the culmination of the deal with the regional carrier, a subsidiary of Lion Air Group.
Wings Air focuses on domestic routes and also serves as a feeder airline for its parent airline in Indonesia. Edward Sirait, CEO of Lion Air Group, said, “We are delighted to start a new relationship with TrueNoord, a specialist regional aircraft lessor, and we look forward to expanding this commercial partnership over the years.”
The aircraft are the first new factory aircraft to be purchased and leased by TrueNoord, with CEO Anne-Bart Tieleman commenting: “It has been an exciting experience for us over the past five months.”
Tieleman, continued, “These aircraft sow the seeds of our ultimate vision and long term plan to build up a strong portfolio of young regional aircraft types with a good global spread and leased to experienced, market leading, operators.
“Wings Air currently flies 270 routes across Indonesia mostly consisting of short-haul flights of less than one hour. Their fleet is exclusively comprised of propeller-based aircraft, allowing the airline to serve difficult routes and airstrips that only turboprop aircraft can service.”
Tieleman continued: “Countries with geographical infrastructure challenges, like Indonesia which is made up of thousands of small islands, rely on air transport to do business, connect to education, healthcare, and families. It is vital for these nations to have a modern, reliable aviation sector that delivers access beyond other more time consuming travel options. TrueNoord are proud to be part of the chain that provides dependable, modern aircraft enabling regional airlines to enhance lives and build prosperity.”
The aircraft are all provided on long-term operating leases in association with Transportation Partners and ATR. Financing is provided under TrueNoord’s recent term loan warehouse facility supported by Morgan Stanley, NORD/LB Norddeutsche Landesbank and Barclays.
ATR chief executive, Stefano Bortoli, said: “ATR repeatedly proves itself as a first class investment asset for lessors, financiers and investors confirming its attractive return and high residual value.”
TrueNoord said it is “firmly establishing its footprint in South East Asia” with this deal following TrueNoord’s purchase of two Embraer E190s operated by Mandarin Airlines in May. TrueNoord added that “several other opportunities are currently in development across the region.”