Irish aviation executives enter aircraft leasing market with Saudi backing

Two senior figures in Irish aviation circles, Rob Murphy and Edward O’Byrne, are behind a new entrant into the aircraft leasing sector that is wholly owned by Public Investment Fund (PIF), a Saudi-backed investment firm that bought Newcastle United last year.

Mr O’Byrne, who was chief investment officer at AerCap, and managing director at the Carlyle Group, is the company’s chief executive. His Linkedin profile states he is “building the next big thing in aviation leasing”.

Mr Murphy, who is co-chairman of Arthur Cox’s aviation group, is acting as an adviser and director for Avilease.

The company will offer leasing, trading, and asset management services for the latest generation of leading manufacturers’ aircraft.

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Speaking at the launch of Avilease in July, Mr O’Byrne said: “Our company has global ambition and the robust financial backing of PIF. We are ready to capitalise on the strong and growing Saudi market to scale rapidly and become a leading aviation lessor.

“Our plan is to invest in the most technologically-advanced aircraft to enable airlines operate the most fuel-efficient and environment-friendly fleet.

As the company announced its first deal – the purchase of 12 Airbus A320neo jets this year and next and their lease to low-cost Saudi carrier, Flynas – Mr O’Byrne said: “We appreciate the confidence placed in us by the Flynas team and wish them continued success as we start our partnership with them.”

Arthur Cox filed incorporation papers for the company in Ireland with the registrar of companies in June. Other papers were filed by the company in the Cayman Islands in recent weeks.

The business will seek to scale through purchase-and-lease-back transactions, secondary portfolio acquisitions, direct orders from aircraft manufacturers and corporate acquisitions.

Mr Murphy is listed on his Linkedin page as a “senior adviser” on a part-time basis for the new entrant into the market, but company records show he is also listed as a director. He also acts as an adviser to Air Astana, the national Kazakh airline.

Mr Murphy advised on the formation of leasing giant Avolon and advised the company subsequently on a variety of strategic projects, including on the acquisition of the aircraft leasing business of CIT Group, according to his profile on Arthur Cox’s website. He has also worked on a variety of matters for a number of aircraft companies including Ryanair, Easyjet, Virgin Atlantic, Lufthansa and Etihad.

PIF is one of the largest sovereign wealth funds in the world. By the end of the first quarter of this year it had $620 billion (€608bn) in assets under management across a diversified portfolio spanning 13 sectors in Saudi Arabia and globally.

PIF purchased Newcastle United last year, which led to accusations the fund was attempting to sportswash Saudi Arabia’s reputation.

Amnesty International has argued that some countries invest in sport as a distraction from poor human rights records. The human rights charity pointed to Saudi Arabia’s poor treatment of women, use of the death penalty and anti-LGBT stance as examples of poor human rights.

Crown prince Mohammed bin Salman, who rules the country, is also widely believed to have ordered the execution of Jamal Khashoggi, a dissident Saudi journalist, in 2018.

Ireland is the leading centre for aircraft leasing globally representing over $100 billion of assets.

A spokesman for Arthur Cox said the company did not comment on client or staff-related matters. “Arthur Cox assesses prospective clients on their individual merits and bona fides, informed as appropriate by trade policies and custom and practice of the Irish State and State bodies, whilst also complying fully with any applicable sanctions.”

PIF did not return a request for comment.