The investment will see AIP Capital inject capital in a VIG fund for the Eastar Jet investment with the new MAX placements allowing the airline to launch international routes.
SEOUL, DUBLIN AND STAMFORD, September 5th, 2023 – AIP Capital (“AIP”), a global aviation asset management and investment firm, announces the closing of an LP investment in a VIG Partners (“VIG”) fund which holds a control investment in Korean low-cost carrier, Eastar Jet, and placement of five new Boeing 737 MAX 8 aircraft. Two aircraft delivered to Eastar Jet in August with one more scheduled for September and a final two in Q3 2024. This investment and aircraft placement follows the recent joint-venture announcement with Dreamstone Aviation Partners.
Established in 2007, Eastar Jet is a low-cost airline based in Seoul, South Korea. The airline is currently flying three daily flights between Gimpo International Airport (GMP) in Seoul and Jeju International Airport (CJU). Eastar Jet was recently acquired by the South Korean-based private equity fund VIG Partners which will see the airline expand its scale and presence in the region. AIP’s 737 MAX 8 aircraft will form the core of the international network and fly from Seoul (GMP and ICN) to Tokyo, Osaka, Bangkok, and Taipei initially.
Jared Ailstock, Managing Partner of AIP commented, “We are pleased to be a first mover with Eastar Jet immediately following the acquisition by VIG Partners. AIP’s commitment of five 737 MAX aircraft and concurrent financial investment was key in Eastar continuing as a Boeing operator as they seek to grow the airline. We are grateful for the trust placed in AIP by both the Eastar management team and VIG Partners and look forward to growing our partnership in the region.”
Changhoon Shin, Managing Partner of VIG Partners commented, ““We are pleased to establish and build our relationship with AIP through this large transaction. Five aircrafts for EastarJet will be the foundation of the airline’s network and allow us to initiate substantial growth with the operational efficiency of the Boeng 737 MAX.”
Gibson Dunn acted as legal advisor to AIP in the U.S. with Kim & Chang advising in Korea. PwC provided tax advice.
About AIP Capital
AIP Capital (“AIP”) is a differentiated global aviation asset management and investment firm with offices in Dublin, Ireland and Stamford, Connecticut. The company was founded in 2023 by an established team with nearly three decades of combined experience and ~$10bn of capital deployed across debt and equity in the aviation sector. AIP Capital currently owns and manages ~30 aircraft which totals ~$1.68bn along with an orderbook of ~68 aircraft. For more information about AIP Capital or to speak with company executives, please contact info@aipcapital.com.
About Eastar Jet
Eastar Jet is a South Korean low-cost airline with its headquarters in Banghwa-dong, Gangseo-gu, Seoul. The airline was founded in 2009 and currently operates 7 aircrafts on a scheduled passenger network to 14 destinations in six countries. In 2023 the airline was acquired 100% by VIG Partners.
About VIG Partners
VIG Partners, founded in 2005, has comprehensive experience and expertise in the Korean mid-market buyout sector, with successful track records across a diverse range of industries, including financial services, consumer goods, online and mobile commerce, and household appliances. Since its inception in 2005, VIG Partners has invested approximately $3.0bn of capital across 27 portfolio companies in Korea, with shareholding control in 24 of these companies.