AELF – Aircraft Engine Lease Finance has successfully obtained a $40 million credit facility from Merchants Bank of Indiana, a strategic move to enhance its Boeing 737-800 fleet amid favorable market conditions. Based in Chicago, AELF aims to capitalize on growth opportunities by expanding its portfolio of narrowbody aircraft.
This funding initiative is backed by collateral that includes four of AELF’s ten A330-200s, which were acquired from Airbus Asset Management in 2016 and 2017. These aircraft are currently under long-term operating leases with Canada’s Air Transat, based in Montréal Trudeau. While AELF maintains a strong presence with its A330-200 fleet, the focus is now shifting towards boosting its Boeing 737-800 holdings, recognizing this segment as a crucial growth area.
Philip Scruggs, a board member at AELF, emphasized the importance of solid financing relationships like that with Merchants Bank and other aviation lenders in supporting the company’s strategic direction, particularly in expanding its narrowbody operations.
The relationship between AELF and Merchants Bank dates back to 2018, marking the bank’s first foray into the commercial aviation sector with AELF as its inaugural business client in this industry. This ongoing partnership underscores a shared commitment to fostering growth and seizing market opportunities in the aviation sector.
