The aircraft have been acquired from Aerocentury Corp. and are currently on lease to Republic Airways where they will remain in service for American Airlines under the existing lease contract. The acquisition has been funded by the Falko Regional Aircraft Opportunities Fund II, which closed in June 2019 with total equity commitments of $650m.
“We are delighted to have completed this deal with Aerocentury. This acquisition further expands our portfolio of Embraer manufactured aircraft and broadens our existing relationship with Republic which has demonstrated its business to be tremendously robust over the last twelve months. Republic’s business model and partnerships with the major US carriers have underpinned an impressive performance in 2020” said Mark Hughes, Chief Commercial Officer, Falko Regional Aircraft Limited.
“This deal is another that has been funded by capital from our second regional aircraft fund which has now invested in over forty (40) regional aircraft. We have seen that regional aircraft are ideally suited to help operators capitalize on the resurgence in air travel following the Covid pandemic where domestic and short-haul regional travel is leading the recovery. The low trip cost of regional aircraft like the E175 directly complements airlines’ operating requirements in an uncertain demand environment.
