Dynam Aviation eyes two-pronged acquisition strategy.

Three months after its first aircraft acquisition, Dynam Aviation plans to develop its activity via two channels, according to chief executive officer Katsuhiko Ando.

The newly formed Irish aircraft leasing platform has acquired one Airbus A320 on lease to Vueling Airlines while two more acquisitions are planned in the final quarter of this year.

The lessor intends to grow its portfolio to 30 aircraft.

“We will grow the business via aircraft acquisitions with lease attached as well as purchase and leaseback transactions,” Ando tells Airfinance Journal.

Ideally, Dynam Aviation would like to close more purchase and leaseback deals but Ando admits the market is still “very competitive”.

“We have set up some criteria for each transaction and we will stay with our policy,” he says.

“We still consider the market to be overheated but we are generally seeing better returns from purchase and leasebacks.”

For now, Dynam Aviation will focus on two to three aircraft deals and the Irish lessor will expand its activity using both purchase and leaseback as well as novation of aircraft with leases attached.

“We have a preference for new-generation aircraft over current-generation aircraft,” Ando says, observing that airlines generally plan to keep their new-generation aircraft for longer than current-generation aircraft.

Ando says the lessor has not yet closed a Boeing 737 Max transaction, however once deliveries resume this will change. “No doubt the Max will be considered,” he says.

Dynam Aviation Ireland is fully owned by Dynam Japan Holdings, a Hong Kong-listed company and the leading operator of Pachinko slot machines in Japan. Sato Aviation Capital, an Irish aircraft leasing company, owns 34% of Dynam Japan Holdings.