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Embraer Delivers 3 E190s To Cairo Based CIAF Leasing

Dec 30,2022

The three aircraft were from a firm order placed in November 2019.

Since it was founded in 1969, aircraft manufacturer Embraer has delivered more than 8,000 aircraft. And on December 22nd, the manufacturing company delivered three more to a Cairo-based aircraft lessor to mark its fleet renewal's start and further symbolize Embraer's presence in the region.
Embraer had delivered three brand new E190 aircraft to Civil Aviation Finance and Operating Leases Corporation (CIAF Leasing), an aircraft lessor first established at the 2009 Paris Air Show. The leasing company was initially a joint venture between various state-owned shareholders and Aviation Capital Group Corporation.

There were four principal lines of business: operating and financial leasing of narrow-bodies aircraft and financial leasing of minor ticket aviation-related equipment among other assets. The other two were acting as an airline for domestic and international flights and providing medical services for all aviation personnel.

As part of its growth process, the aircraft lessor wanted to take in more aircraft and expand further into the Middle East and Africa. It was, at the time managing three Boeing 737s operating for China Eastern Airlines, TUI, and AMC Airlines. The lessor's fleet also included three Airbus A330-200s, Embraer E170s, and E195s for its in-house air operation services.

Concerning the fleet expansion, the three delivered aircraft from Embraer were from a firm order placed back in November 2019, whereby two were to be leased to Jasmin Airways and the other to Air Cairo. The three aircraft were expected to be delivered to CIAF Leasing in the fourth quarter of 2020.

And as for expanding internationally, the Cairo-based company was tapping into banks to prepare a $50 million Sukuk financing line. The expected proceeds from the issuances were supposed to be directed into financing the purchase of new aircraft, boosting rental yields that would support the targeted expansion in the Gulf countries and African markets.

Unfortunately, the pandemic shifted momentum, forcing the company to put its expansion plans on hold. Recovery for CIAF Leasing has also been rough in the post-pandemic era, forcing the company to close its air operations and exit the ACMI/charter market. Even with funds from its Egyptian partners and Egypt's Civil Aviation Support and Development Fund, the company was still treading water.

However, the fact that Embraer has finally succeeded in delivering the long-awaited three E190s to CIAF Leasing could indicate that the company is on a path of redemption. During the deliverance ceremony at Embraer's headquarters in Brazil, Salah Hashem, Chairman and Chief Executive Officer of CIAF Leasing, said: Though the three aircraft's destination remains unclear, Air Cairo still has one future E190 in its fleet, and Jasmin Airways does not. It's also unclear if CIAF Leasing will re-enter the ACMI/charter market or restart air operation services. Regardless, it's certain that the company's recovery in the post-pandemic era will be a lot steadier going into the following year.

Under this background, the Aircraft Value Management International Forum will be held on March 29th to 30th, 2023 in Shanghai, China. The forum will mainly focus on new aircraft value assessment, disposal of old aircraft, aircraft leasing and operation, aims to introduce advance ideas and methods, share successful experiences, combine with that situation of the aviation division itself, to open up more efficient and more active aircraft management.

Register your interest or get in touch with marketing@galleon.cc for more details.

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