Private equity news korea Korea's Eastar Jet Owner Secures Capital Injection from AIP Capital

Korea’s Eastar Jet Owner Secures Capital Injection from AIP Capital

South Korean low-cost carrier, Eastar Jet, has received a capital injection from AIP Capital, an aviation asset management and investment firm. AIP Capital has agreed to lease five Boeing 737 MAX 8 aircraft to Eastar Jet, with two already delivered in August and one scheduled for delivery this month, followed by two more in the third quarter of 2024.

Private Equity News Korea

The lease agreement was key in Eastar Jet’s decision to continue as a Boeing operator as they seek to grow the airline.

The joint-venture announcement follows VIG Partners’ acquisition of Eastar Jet, in which the private equity fund and controlling owner received a financial investment from AIP Capital.

With this investment, Eastar Jet aims to expand its network and improve its operational efficiency. The move comes as Asian airlines experience a travel resurgence and pent-up travel demand.

Korea's Eastar Jet Owner Secures Capital Injection from AIP Capital

Changhoon Shin, Managing Partner at VIG Partners, said the company was pleased to establish and build its relationship with AIP Capital through this large transaction. The five aircraft leased to Eastar Jet will be the foundation of the airline’s network and allow them to initiate substantial growth with the operational efficiency of the Boeing 737 MAX.

Frequently Asked Questions

What is the Significance of Eastar Jet Receiving a Capital Injection from AIP Capital?

Eastar Jet’s capital injection from AIP Capital is significant because it will help the airline to weather the financial challenges that it has been facing. The injection will enable the airline to pay off its debts and improve its liquidity, which will help it to continue operating and growing.

What is AIP Capital and How are They Involved with Eastar Jet?

AIP Capital is an aviation asset management arm of USA-based private equity firm 777 Partners. They are involved with Eastar Jet as they have recently acquired a 10% stake in the airline and agreed to lease five 737 MAX 8s to the airline.

Can You Provide More Information About AIP Capital and Their Investment in Eastar Jet?

AIP Capital is a recently launched leasing platform that manages approximately 30 aircraft with a further sixty-eight B737 MAX aircraft on order. Their investment in Eastar Jet includes acquiring a 10% stake in the airline and leasing five 737 MAX 8s to the airline.

How Will Eastar Jet Use the Capital Injection from AIP Capital?

Eastar Jet will use the capital injection from AIP Capital to pay off its debts and improve its liquidity. This will help the airline to continue operating and growing.

What Impact Will AIP Capital’s Investment Have on Eastar Jet’s Future?

AIP Capital’s investment in Eastar Jet will have a positive impact on the airline’s future. The capital injection will help the airline to weather the financial challenges that it has been facing and improve its liquidity. This will enable the airline to continue operating and growing.

How Does AIP Capital’s Investment in Eastar Jet Fit into Their Overall Investment Strategy?

AIP Capital’s investment in Eastar Jet fits into their overall investment strategy of investing in the aviation sector. The investment will enable AIP Capital to tap into the travel resurgence in Asia and expand their aviation interests across the Asia Pacific region.


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