During the heigh of the pandemic, airlines tapped into a variety of funding sources to increase liquidity levels to allow the company to survive the grounding of the world fleet and to fund the recovery period. As the world recovers, air travel demand has returned and even surpassed all predictions, leaving airlines struggling to ramp up capacity and services to serve their customers. As airlines expand their fleets with new technology aircraft, they are searching for new pockets of capital to fund new deliveries. LR AirFinance, sister company of new aircraft lessor High Ridge Aviation, has been set up to assist airlines and aircraft owners with all aspects of aviation finance.
LR AirFinance is headed up by group head Maggie Morrow, who has had a long career in aviation finance, the majority spent with PK AirFinance – the financing arm of GECAS bought from GE Capital by Apollo Global Management and Athene Holding in August 2019. Prior to PK AirFinance, Morrow worked at Lehman Brothers and Capstar Partners, working on financing solutions for airlines and utilities.
Today, LR AirFinance fills an industry need for access to senior debt secured by commercial aircraft and engines. The company sources, arranges and manages optimised financing sources for customers that include airlines, aircraft traders, lessors, investors, and manufacturers.
“The strategy for LR AirFinance is to originate senior secured opportunities in the commercial aircraft space,” says Morrow. “Our remit is to consider different opportunities and structures in order to put together financing structures that meet both our risk and our return requirements while meeting the financing needs of our customers.”