KGAL invests in leasing deal for three more aircraft for pension fund

Grünwald near Munich, 03.12.2024 - KGAL has successfully concluded a lease agreement with the Canadian regional airline Porter Airlines for three De Havilland Dash-8 Q400 aircraft via its subsidiary GOAL, the long-standing joint venture between KGAL and Deutsche Lufthansa AG. The aircraft are part of the KGAL APF 5 fund, which specialises in aircraft leasing and which has to date grown to a volume of well over 400 million euros.

In 2021, the APF 5 fund was launched as an individual mandate for a German occupational pension scheme despite the challenging conditions at the time. GOAL manages the fund as technical asset manager and is also a co-investor in the special AIF. The financed aircraft type, the De Havilland Dash-8 Q400, is a proven twin-engine turboprop aircraft for a maximum of 90 passengers, with more than 1,000 aircraft in service worldwide. Porter Airlines operates one of the largest Dash-8 Q400 fleets in the world.

The forecast return performance of the KGAL APF 5 fund is developing according to plan and is in the double-digit range (IRR). Further transactions are expected to follow soon.

“As we expected, the market for aircraft financing has returned to a stable growth path. The significant increase in demand on the lessee side offers numerous opportunities for institutional investors. Our decades of technical and investment expertise, which we can offer together with our subsidiary GOAL, allows us to actively exploit these opportunities for our investors and generate attractive returns from the favourable conditions,” says Stephan Gundermann, Head of Portfolio Management Aviation at KGAL.

KGAL will offer further customised investment solutions for institutional investors in the aviation sector. A new edition of the successful fund concept is currently under preparation.