Falko acquires two E170 aircraft from Azorra

Falko has announced the acquisition of two Embraer E170 aircraft from Azorra, a U.S.-based commercial aircraft lessor. These aircraft, currently leased to American Airlines and subleased to its subsidiary, Envoy Air, will be integrated into Falko's managed fund, the Falko Regional Aircraft Opportunities Fund II (Fund II). This addition increases Fund II's portfolio holdings with American Airlines, where it already leases three CRJ700 aircraft, further strengthening Falko's strategic footprint in the North American market.

Mark Hughes, Chief Commercial Officer of Falko, expressed his enthusiasm for the transaction with Azorra, acknowledging its collaboration and anticipating future partnership opportunities. He pointed out that the acquisition not only enhances Fund II's exposure to a major U.S. airline but also adds two E170s to its portfolio, bringing the total to eight E170 aircraft in Fund II and sixteen across Falko's entire portfolio. Demand for the E170 remains robust, particularly within North America, due to the aircraft's compliance with scope clauses in airline contracts and its suitability for connecting secondary airports and feeder routes to major hubs across the U.S. This adaptability makes the E170 a valuable asset for Falko's portfolio, given its high demand for regional and crossover markets.

Falko's acquisition aligns with its strategic vision to grow its portfolio within the 70-130 seat aircraft sector, a niche where it holds a significant position. The company's focus is on expanding its portfolio and enhancing services in support of its lease management activities for regional jets, which serve essential connectivity roles in the aviation sector. As a wholly owned subsidiary of Chorus Aviation Inc., based in Halifax, Nova Scotia, and listed on the Toronto Stock Exchange, Falko benefits from a stable parent company, further supporting its ability to secure and manage a growing portfolio of aircraft.