Hawaiian Airlines – Case Study

Hawaiian Airlines: Trent 700 spare engine sale and lease-back

Taking Hawaii to the world

Hawaiian Airlines was founded in 1929 and is Hawaii's largest and longest serving airline today and also the 8th largest U.S. carrier. On average, Hawaiian Airlines carries 10 million passengers a year and offers a non-stop service to Hawaii from more U.S. gateway cities than any other airline. Hawaiian Airlines also services Japan, China, South Korea, Australia, New Zealand, American Samoa and Tahiti. The authentic Hawaiian hospitality is embedded in everything Hawaiian Airlines does, from the moment you board one of their aircraft your vacation has already begun as they entice you with the sights, sounds and tastes of Hawaii. This has been continuously recognised and Hawaiian Airlines has been rated the best carrier serving Hawaii by many publications including TRAVEL+LEISURE and Conde Nast Traveller.

Trusted partners

Hawaiian Airlines and Rolls-Royce & Partners Finance (RRPF) have been working together since 2001 when the airline introduced the Rolls-Royce BR715 powered Boeing 717 for inter-island flights. As Matt Baumgarth, Director, Fleet Acquisition, explains, one of the reasons Hawaiian Airlines initially went to RRPF is that, "[we] value greatly dealing with partners that are intelligent about their products both from a financing side and a technical side." Spare engine leasing has enabled the airline to have greater flexibility to manage their fleet and utilise their assets. As the airline expanded they turned again to RRPF to assist them with their spare engine requirements on their new Trent 700 powered Airbus A330.

Working together to finance expansion

In 2010, Hawaiian Airlines started replacing its existing wide-body aircraft with new Airbus A330-200s. The airline looked for financing options for the new aircraft and spare engines. Hawaiian Airlines engaged RRPF to find a solution for their spare engine financing. After a process of working together RRPF considered the airline's specific requirements and proposed several tailored options for them. This way of working produced a unique sale and lease-back solution for two Trent 700 spare engines. Indeed, as Baumgarth states "there were elements of the transaction that benefited Hawaiian Airlines that other lessors could not provide."

The road ahead

RRPF and Hawaiian Airlines have enjoyed working together for over 13 years. Long-term customer relationships are very important to RRPF and Hawaiian Airlines has continued to trust RRPF for their spare engine requirements. As Baumgarth explains, "We felt throughout the entire process that we were dealing with a partner and not a financial counter-party…we are very happy where we have come over the last 13 years and we look forward to future opportunities together."

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