KGAL GmbH & Co KG stated (18-Feb-2013) it is launching the placement of its new aviation fund. The SkyClass 58 offers private investors the opportunity to indirectly participate in up to 12 A319s. The offer currently involves one aircraft. Depending on the placement's progress, a further eleven could be added. With a projected period of five years, the company said this "is is a genuine short-dated bond". All aircraft leases will run until the projected sale of the aircraft in 2018. The lessee is easyJet and the guaranteeing holding company easyJet plc. The SkyClass 58 offers investors the chance of projected distributions/withdrawals of 8% p/a and the first pro rata distributions/withdrawal falls due as early as 30-Jun-2013. GOAL, a JV between Lufthansa and KGAL, will also be responsible for maintaining the value of the aircraft financed under the KGAL's newly operational aviation fund. The investment volume is around EUR14.8 million with minimum participation of EUR10,000 plus 3% share premium. [more - original PR]
Placement of KGAL's SkyClass 58 aviation fund begins
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An expanded TUIFly operation could, perhaps, better withstand fast-growing competition from Ryanair in Germany, although these stories have been denied. A more definitive development, announced by both parties, is that up to 40 of airberlin's narrow body fleet will be wet-leased to Lufthansa Group for its LCC Eurowings and Austrian Airlines. Airberlin will also put its leisure operations into a separate unit. These moves should partly alleviate airberlin's overcapacity problems, while accelerating the growth of Eurowings (further boosted by the possible integration of Brussels Airlines into the LCC).
Even if the other stories prove mere speculative, the frequency of such reports highlights the need for consolidation in Europe, whose centre is Germany. Moreover, they throw light on the rapid pace of change in business models in what has historically been a very conservative aviation market.
Lufthansa still Number 2 vs IAG & Air France-KLM. Soft RASK justifies more ASK trimming for all
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