Regional Aircraft Lessor NAC Expands ATR Portfolio
Nordic Aviation Capital inks a LOI for up to 105 ATR 42/72-600s

Tuesday proved to be a good day for ATR at the Paris Air Show, with the signing of a letter of intent (LOI) with Nordic Aviation Capital (NAC) for up to 105 of the European OEM’s turboprops. The deal covers 35 firm ATR 72-600s, with options for a further 35 and purchase rights for another 35.


Speaking at the signing ceremony, NAC chairman Martin Møller indicated the LOI would result in a detailed contract in the “next weeks,” and pointed out that the lessor and ATR boast a long history. For NAC, he said, “It does not take a letter of intent [to buy ATR aircraft], it takes a handshake. The deposits have been paid.”


NAC is “fully committed” to take on the firm orders covered in the LOI, and deliveries of the initial 35 aircraft will begin in 2020 and run up to 2025, he said. The Copenhagen-based leasing company has firm dates on the options, while no timing is attached to the purchase rights.


“To plan for a successful future, it is vital for us to invest in the very best technology, so that we can offer flexible and efficient solutions to our clients,” Møller noted. “The ATR72-600, with a significant fuel burn advantage drives lower costs and emissions making it the optimal choice for many of our clients. We love the ATR. More importantly, the operators truly love this aircraft.”


Møller told AIN that Europe has “been consistently good” for NAC, accounting for about 50 percent of the lessor's portfolio of regional aircraft. NAC’s current fleet of almost 500 aircraft includes types such as the ATR 42, ATR 72, Bombardier (now De Havilland of Canada) Dash 8, Airbus A220, and Embraer E-Jets.


The other half of its fleet is in other world regions. “Since late 2015 until now, we have seen some economies in South America and parts of Asia slow down and they have not ordered as many aircraft," said Møller. Some of these economies are doing better, he added, indicating he expects demand to pick up there.


ATR chief executive Stefano Bortoli described NAC’s deal as “a smart business move and one very much in line with the trends in regional aviation to connect communities and develop businesses across the globe in the most responsible and cost-efficient way." This agreement, he asserted, “clearly shows where the trend in regional aircraft is going.”