Riyadh: Hassana Investment Company (Hassana) and AviLease, a global aircraft lessor and a Public Investment Fund (PIF) company, have formed a strategic partnership to launch a dedicated aircraft leasing joint venture (JV), as announced in a news release by AviLease.

According to Saudi Press Agency, this initiative highlights the increasing involvement of Saudi institutional investors in shaping the future of the aviation sector. The partnership aims to fund the expansion of Saudi carrier fleets through long-term capital and sector-focused platforms, aligning with the objectives of the Saudi National Aviation Strategy.

Hassana will hold the majority ownership in the JV, with AviLease serving as the aircraft service provider. The collaboration is intended to offer both international and local investors access to the aviation financing asset class, leveraging AviLease's technical expertise and operational capabilities to enhance the JV's growth and performance.

The JV's debut transaction involves acquiring a portfolio of 10 aircraft from AviLease, currently leased to Saudi-based airlines. This portfolio includes new technology and fuel-efficient aircraft, supporting the nation's efforts to enhance efficiency and sustainability within its expanding aviation infrastructure.

Hassana's acting chief executive and chief investment officer, Hani Aljehani, stated that the strategic partnership emphasizes the company's commitment to investing in resilient assets that generate sustainable, long-term cash flows. Aljehani noted that the collaboration with AviLease aims to boost exposure to the aviation leasing sector while advancing the Kingdom's broader aviation goals.

Edward O'Byrne, AviLease chief executive, highlighted that partnering with Hassana strengthens their role as a PIF company focused on delivering long-term value through superior asset management and origination. O'Byrne described the proposed JV as a foundational step in creating a scalable platform to support the growth of the Saudi aviation ecosystem. He expressed anticipation for future transactions and expanding their presence in the global aircraft leasing market.