Lessor Falko’s March purchase of a portfolio of 24 Embraer E190s and 170s from Nordic Aviation Capital was the latest in several such recent acquisitions that has demonstrated the attractiveness of this class of aircraft.
There is particularly strong interest in the E-Jet at present, said Falko CCO, Mark Hughes. “The E-Jet is a core asset in our portfolio. If you look at it, there have been over 800 E190/195s manufactured, there’s a strong operator base, there’s ongoing commitment from operators at the top of the sector and there’s no direct replacement for that aircraft.”
The E1 series Embraer 190/195s fill a particular niche, Hughes said, as the E2 versions of the 190 and 195 have increased passenger capacity to the point at which the 195 E2 is more like a small narrowbody.
“If you want 100-seater jet today, there isn’t anything in production and you have to look at the E190 as being the core aircraft in that space.” Falko sees that factor being combined with longevity in demand.
In short, “It’s absolutely core to our portfolio. It’s about one-third of it in terms of aircraft numbers and we’re more than happy to add to that.” As a result, Falko has an active interest in acquiring further portfolios from other lessors, should they become available, he said. “We’d definitely take a look.”
Since Falko was set up around 13 years ago, “We’ve always been very price-sensitive and price-focused, so it’s going to depend on transactional economics, but we’d always be interested in portfolios – not only in crossover jets.”
Would Falko consider buying direct from OEMs? That would always be a possibility, said Hughes, although until now the company’s focus has been on deploying capital in the short term. There’s a bit of a mismatch between our funding structures and what you need to commit to in a new aircraft order [but] we would actively consider it if we could find the right opportunity.”
Although the E190 E1 series precisely fitting the 100-seat slot, Falko has also acquired E2s and Airbus A220s: Airbus has done a tremendously good job in convincing the world that the A220 is a small narrowbody, which has broadened its appeal.”
The A220’s customer base has a clutch of particularly high-rated carriers, he noted, including Air France, Swiss, Delta and Qantas.
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