Reuters – By Abhijith Ganapavaram
June 29th (Reuters) – AIP Capital said it was in talks to pick up a 10% stake in Eastar Jet as the aviation asset management arm of U.S.-based private equity firm 777 Partners seeks to tap into the travel resurgence in Asia.
AIP would also lease five Boeing 737 MAX 8 jets to the South Korean low-cost airline, it said without disclosing the additional terms of the deal, which is expected to close mid-July.
This comes as Asian airlines recover from the depths of the pandemic, banking on pent-up travel demand that has sent carriers scrambling for jets and staff.
In 2021, Eastar Jet had filed for court receivership as the COVID-19 pandemic battered the travel industry.
Earlier this year, South Korean private equity firm VIG Partners bought the airline and agreed to inject 100 billion Korean Won ($75.98 million) into the carrier, according to a DealStreet report.
Separately, AIP announced that it has closed a minority investment and joint venture agreement with consulting and investment firm Dreamstone Aviation Partners.
The Dreamstone deal would allow AIP to capitalize on rising investment opportunities in the country, its Managing Partner Jared Ailstock said.
AIP would hold about 30% of the shares in Dreamstone and join its board of directors. ($1 = 1,316.2100 won)