KKR Expands Aviation Exposure with $1.4 Billion Commitment, Reuters Says

KKR & Co. Inc. (NYSE:KKR) is included among Billionaire Mario Gabelli’s Top 12 Dividend Stocks.

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On June 18, Reuters reported that KKR & Co. Inc. (NYSE:KKR) disclosed a new $1.4 billion investment in aircraft leasing through its partnership with Altavair. The move comes as ongoing production delays at Airbus and Boeing continue to limit aircraft availability across the industry.

Aircraft leasing companies and private equity firms have taken on a larger role in financing aircraft purchases. Airlines are dealing with higher costs, recovering travel demand, and a shortage of available planes, making leasing an increasingly important option.

Airlines now lease roughly half of the global aircraft fleet rather than owning the planes outright. KKR has invested more than $12 billion in the aviation sector since 2015. Altavair specializes in acquiring new and used commercial aircraft and leasing them to passenger and cargo airlines worldwide. According to a person familiar with the transaction, most of the newly committed capital remains available and is expected to be deployed over the next four years.KKR plans to acquire aircraft directly from airlines looking to free up cash, as well as from manufacturers such as Airbus and Boeing, and through secondary market transactions.

These transactions often involve purchasing aircraft and leasing them back to airlines under multi-year agreements. This allows carriers to generate cash while continuing to operate their existing fleets.

KKR & Co. Inc. (NYSE:KKR) is a global investment firm that provides alternative asset management, capital markets, and insurance solutions. The company operates through its Asset Management, Insurance, and Strategic Holdings segments.

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