$320m Boeing order at Pembroke Capital

Pembroke Capital, the aircraft management company in which Mr Dermot Desmond's International Investments & Underwriting has a 50 per cent stake, has signed a $320 million order with Boeing for ten new B717-200 aircraft. When deliveries are completed by May 2001, the order will boost the size of Pembroke's fleet of aircraft to 55.

Pembroke has an existing $540 million order with Boeing for the supply of 13 B-737 aircraft with deliveries due to be completed by the middle of next year. Lessors of these aircraft include Air France and SAS. Lessors for the new order have not yet been lined up, but Pembroke director Mr Brian Goulding, said that the group is confident of having customers in place by the time deliveries of the B-717 aircraft begin in March 2000.

The 110-seater B-717 is targeted for the short-haul high frequency where over 700 ageing DC-9 aircraft are still in service, said Mr Trevor Henderson of EVP Marketing. "We believe the B-717, powered by BMW Rolls Royce engines, represents an excellent aircraft and a welcome upgrade opportunity for operators in this market," said Mr Henderson.

Pembroke Capital was founded in 1993 by three former GPA executives, Mr Goulding, Mr Michael Dolan and Ms Margaret Clandillon. In 1995, IIU invested $15 million for a 50 per cent stake in the company and it was IIU which made the pre-delivery funding arrangements for Pembroke for the first Boeing order. Mr Goulding declined to go into detail on funding for the new order, apart from saying it would be a combination of equity and debt.

Pembroke is based in the International Financial Services Centre and is more an aircraft management company than an aircraft leasing company. It is involved in the management of the aircraft leases, marketing, arranging releases and selling the aircraft.

Previously, the group has packaged aircraft as a group and sold on shares to investors while maintaining a stake and managing the portfolio of aircraft.