Global aviation asset management and investment firm, AIP Capital (AIP), announced the closing of an LP investment in a VIG Partners fund. This fund holds a control investment in Korean low-cost carrier, Eastar Jet, and will facilitate the placement of five new Boeing (NYSE:BA) 737 MAX 8 aircraft. Two of these aircraft were delivered to Eastar Jet in August, with another scheduled for September and the final two set for Q3 2024. This significant step follows AIP's recent joint-venture announcement with Dreamstone Aviation Partners.
Established in 2007, Eastar Jet is a Seoul-based low-cost airline that currently operates three daily flights between Gimpo International Airport (GMP) in Seoul and Jeju International Airport (CJU). South Korean private equity fund VIG Partners recently acquired Eastar Jet, setting the stage for the airline to expand its scale and presence in the region. The inclusion of AIP’s 737 MAX 8 aircraft will form the core of Eastar Jet's international network, initially flying from Seoul (GMP and ICN) to Tokyo, Osaka, Bangkok, and Taipei.
Jared Ailstock, Managing Partner of AIP, expressed his satisfaction with the developments. “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," he said. "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, echoed these sentiments. “We are pleased to establish and build our relationship with AIP through this large transaction. Five aircraft for EastarJet will be the foundation of the airline’s network and allow us to initiate substantial growth with the operational efficiency of the Boeing 737 MAX,” he stated.
Legal advice for this transaction was provided by Gibson Dunn for AIP in the U.S., while Kim & Chang offered counsel in Korea. PwC provided tax advice.
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