STAMFORD, Conn., Feb. 4, 2019 /PRNewswire/ -- Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR) today provided an update on its aircraft still being operated by Avianca Brazil.
On February 1, 2019, the judge in the bankruptcy proceeding of Avianca Brazil issued an order extending the stay on repossession until mid-April. Despite extending the stay, the decision requires the airline to resume making payments beginning February 1, 2019. Aircastle believes the decision is contrary to well established Brazilian law and The Cape Town Convention, a treaty adopted by Brazil which provides international standards for the repossession of aircraft. Aircastle intends to continue to aggressively pursue its rights, including the immediate appeal of the judge's decisions.
Mike Inglese, Aircastle's CEO, stated, "A predictable judicial system and reliable framework for the recovery of aircraft is a principal factor in the cost and availability of capital to airlines. Brazil is the third largest civil aviation market in the world and the country's aviation industry has benefitted from its adoption of Cape Town, enabling Brazil to attract significant foreign capital. While we were fully prepared for an unfavorable ruling, we remain hopeful that the Brazilian Judiciary will respect the rule of law and honor their obligation under The Cape Town Convention. We still expect to recover our aircraft on a timely basis."
Mr. Inglese continued, "Our aircraft being operated by Avianca Brazil are modern, desirable aircraft and we expect the aircraft to be placed in a timely manner after repossession. In addition to leasing aircraft to Avianca Brazil, we provide financing to other major airlines in Brazil and have commitments to purchase almost $1 billion in Embraer E2 next generation regional jet aircraft. We believe the judge's decision will negatively impact Brazil's civil airline industry with higher costs and less funding."
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet aircraft to airlines throughout the world. As of September 30, 2018, Aircastle owned and managed on behalf of its joint ventures 246 aircraft leased to 85 customers located in 46 countries.
All statements in this press release, other than characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not necessarily limited to, statements relating to our repossession and remarketing of the aircraft subject to the Avianca Brazil leases and statements regarding Avianca Brazil's bankruptcy proceeding. Words such as "anticipates," "expects," "intends," "plans," "projects," "believes," "may," "will," "would," "could," "should," "seeks," "estimates" and variations on these words and similar expressions are intended to identify such forward-looking statements. These statements are based on our historical performance and that of our subsidiaries and on our current plans, estimates and expectations and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements; Aircastle can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any such forward-looking statements which are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this press release. These risks or uncertainties include, but are not limited to, those described from time to time in Aircastle's filings with the SEC and previously disclosed under "Risk Factors" in Item 1A of Aircastle's 2018 Annual Report on Form 10- K. In addition, new risks and uncertainties emerge from time to time, and it is not possible for Aircastle to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Aircastle expressly disclaims any obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.
SOURCE Aircastle Limited