Irish aircraft lessor Avolon supplied three Airbus planes to Thomas Cook

UK travel company collapsed after efforts to save it failed at the weekend

Thomas Cook had its own airline, which had around 60 Airbus and Boeing craft leased from a variety of companies. Photograph:  Christopher Furlong/Getty Images

Thomas Cook had its own airline, which had around 60 Airbus and Boeing craft leased from a variety of companies. Photograph: Christopher Furlong/Getty Images

 

Irish aircraft lessor Avolon supplied three Airbus planes to Thomas Cook, the British travel company that collapsed yesterday after efforts to save the business failed at the weekend.

Thomas Cook had its own airline, which had around 60 Airbus and Boeing craft leased from a variety of companies.

It is understood that Dublin-based Avolon had leased three Airbus A 321 craft to Thomas Cook, which are set to be returned to the Irish firm as the British company has ceased trading.

Avolon would not comment yesterday. However, sources say that the company should be able to place the three craft with other airlines, as there is strong demand for models such as the A321, which is used mostly for shorter or medium-length journeys.

No single leasing company has a large number of craft with Thomas Cook. Industry observers say that the travel business leased two or three planes each from a number of lessors rather than doing a lot of business with just one.

Most of the world’s leading aircraft lessors are based in the Republic. Avolon, which owns and manages 530 planes worth a total of $28.3 billion, is one of the top three in the industry. Lessors typically borrow from banks and capital markets to buy craft from manufacturers. They then lease them to airlines, using the rent to pay off the loan used to buy the planes.

Corporate rescue and insolvency specialist Alix Partners is dealing with the airline element of the Thomas Cook liquidation.