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[00:00:38] The KKR Strategic Partnership

  • [00:00:38] The KKR Strategic Partnership
  • [00:01:13] The COVID-19 Impact and Crisis Management
  • [00:02:26] Market Execution and Partnership Results

On this page

  • [00:00:38] The KKR Strategic Partnership
  • [00:01:13] The COVID-19 Impact and Crisis Management
  • [00:02:26] Market Execution and Partnership Results
PE/VC/April 15, 2026/2 min read/youtu.be

Here's the Deal | Altavair | KKR

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In this video, leaders from Altavair and KKR discuss their strategic partnership in the aircraft leasing industry, highlighting how they navigated the unprecedented challenges of the COVID-19 pandemic through long-term vision and stable financing.


Overview of Altavair and the Aircraft Leasing Market**

  • Corporate Identity: Altavair is an aircraft leasing operating company that invests in commercial aircraft globally. [00:00:06]
  • Market Prevalence: Every major airline leases a subset of its fleet; statistically, if you take two trips, at least one of those will likely be on a leased airplane. [00:00:15]

References

  1. Original source (youtu.be)

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Published
April 15, 2026
Read time
2 min read
Progress0%
  • Financial Scale: The aircraft transaction market represents $100 billion in annual volume. [00:00:20]
  • Asset Class Evolution: The industry has shifted from an esoteric, "nichy" asset into a mainstream asset class for investors focused on asset-based finance. [00:00:29]

  • [00:00:38] The KKR Strategic Partnership

    • Timeline: Altavair was founded in 2003 and subsequently formed a joint venture with KKR in 2018. [00:00:38]
    • Partner Objectives: Altavair sought a partner with a high level of sophistication, a desire to scale, and a commitment to a long-term partnership with an industry expert. [00:00:50]

    [00:01:13] The COVID-19 Impact and Crisis Management

    • Economic Shock: In March 2020, the pandemic caused top-tier global airlines to lose tens of millions of dollars per day. [00:01:13]
    • The Billion-Dollar Risk: One year into the JV, the partners had committed $1 billion to a 38-airplane deal with a state-owned airline in the Middle East, with deliveries yet to begin. [00:01:18]
    • Financing Advantage: While the timeline for recovery was unknown (3, 6, or 24 months), the partnership held 5+ years of remaining duration on their financing facilities. [00:01:56]
    • Strategic Patience: This long-term debt financing allowed the firm to stay focused on the long term rather than being forced to sell assets at the wrong time or raise dilutive capital. [00:02:10]

    [00:02:26] Market Execution and Partnership Results

    • Capital Deployment: As airlines faced urgent capital needs, the team utilized KKR’s speed and Altavair’s market expertise to execute multiple sale-leaseback investments at compelling entry points. [00:02:41]
    • Project Completion: Altavair successfully took delivery of every one of the 38 airplanes from the initial $1 billion commitment. [00:02:51]
    • Conclusion: The experience of managing the crisis "in the trenches" cemented the partnership and demonstrated the "true colors" of the collaborators. [00:03:04]

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