Air Lease Corporation (NYSE:AL) leases commercial aircrafts to airline companies. Prior to its IPO, Air Lease owned 46 aircrafts, 9 new and 37 used. The company has entered agreements to purchase an additional 153 new airplanes through 2017 and 10 used airplanes through 2011. AL makes money through its lease agreements with the airlines, which are at minimum 6 years for narrow body planes (aircrafts with one aisle) and 9 years for wide body planes (aircrafts with two aisles).
Air Lease longterm leases allow airline company's to expand their fleet without the large, upfront cost of purchasing an aircraft. As a result, their services are particularly demanded by startup or low cost airlines. Leasing aircrafts allow these companies to grow without the overhead that larger airlines encounter. In addition, leasing aircrafts has gained popularity in developing regions which do not yet have an established or consistent demand for air travel.
The company's initial public offering of stock on the NYSE occurred on April 18, 2011. The company offered 30.3M shares each for $26.50. This was within the $25-$28 initial price range. This offering raised a total of $803M. The company had originally planned to sell 25M shares. The lead managers of the IPO were J P Morgan Chase (JPM) and Credit Suisse Group (CS).
For the full year 2010, Air Lease's total revenue was $57M. The company reported a net loss of $58M.