The recent bankruptcy of Air Canada is likely to take its toll on Oasis International Leasing, a United Arab Emirates (UAE)’s firm who in February 2003 has signed a large Airbus finance lease agreement with the troubled carrier.
The recently concluded agreementprovides for the long-term leaseback of three planes—two Bombardier CRJ-100ER aircrafts and one Airbus A321. The value of the aircraft financed by the Abu Dhabi-based leaser for Air Canada remains undisclosed.
Although Oasis owns the plane and may relet it to another airline if Air Canada does not honor its lease agreement, at a time of weak market demand, airlines interested in letting aircrafts can be hard to come by.
Montreal-based airline Air Canada, the world's 11 largest carrier, has filed for bankruptcy protection on Tuesday, April 1, 2003 before a Toronto court. The filing allows a firm to keep operating while it tries to devise a restructuring plan and renegotiate its debt and leases.
Oasis International Leasing formed in 1997. Its principal business is to identify, structure, manage and invest in high value leasing transactions. The objective is to deliver sustainable shareholder investment returns.
The original Oasis Leasing concept, aimed at promoting the creation of new financial services' clusters in the United Arab Emirates (UAE) economy, was developed by the Offsets Department of the UAE Government. Leasing is viewed as an attractive and sustainable economic sector to develop. Oasis Leasing also seeks to promote leasing in the UAE and to provide a catalyst for the expansion of the financial services sector.
Oasis Leasing's asset portfolio includes 16 aircraft on long-term lease to major regional and international flag carriers and a 50 percent stake in a cape size bulk carrier ship, acquired in 2001. Clients include Air Canada, Malaysia Airlines, Virgin, Air New Zealand and Easy Jet. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
