South Korea: 777 Partners negotiates a stake in Eastar Jet and leasing of aircraft

AIP Capital, the aviation asset management arm of 777 Partners, is in talks to acquire a 10% stake in South Korean low-cost carrier Eastar Jet, Reuters reported today.

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777 Partners would lease five Boeing 737 MAX 8 to Eastar Jet

Separately, 777 Partners would also lease five Boeing 737 MAX 8 to Eastar Jet. The Seoul-based airline currently has one such aircraft in its fleet. It also operates three Boeing 737-800.

In doing so, the Miami-based private equity firm would seek to take advantage of the sharp increase in airline operations in Asia following the widespread lifting of mobility restrictions and good growth prospects for the near future. In this context, many carriers are looking to acquire new aircraft and add employees to their workforces.

According to Reuters, the deal could be finalised by mid-July. However, further details on the final terms are not yet known.

See also: Farnborough 2022: 777 Partners closes order for 66 Boeing 737 MAX

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Eastar Jet wants to fully recover

The airline, which began scheduled operations in 2009, declared insolvency in 2021, hit by the impact of mobility restrictions on its business. However, earlier this year it was bought by VIG Partners, a private equity firm that agreed to inject nearly 76 million dollars to boost its operations.

If realised, 777 Partners’ participation and the addition of new Boeing 737 MAX 8s would allow Eastar Jet to increase capacity and meet pent-up travel demand in the region.