US fund Castlelake to buy planes from AirAsia in $800 million deal: sources

US private investment firm Castlelake LP has struck a deal to buy a portfolio of about 30 narrowbody planes from AirAsia Group for a total price of roughly $800m, people familiar with the transaction said. The deal underscores the strong appetite of funds to invest in the global aircraft leasing sector, which is benefiting from growing demand on the back of a rise in low-cost carriers and passenger traffic. For AirAsia, the deal marks another move to monetise its assets as Asia’s biggest budget airline seeks to transform itself into an asset-light, digitally focused firm. The carrier is cashing in on a booming leasing sector after ordering hundreds of Airbus planes at bargain prices in recent years to become one of Airbus’ biggest customers. Castlelake, a global fund focused on alternative investments, has been stepping up its exposure to aviation assets. In June last year, it raised $1 billion from investors including family offices, sovereign wealth funds, endowments and pension funds. “Castlelake is growing at a fast pace and looking to buy aviation assets,” said one of the people. “This is one of their biggest deals in Asia with one airline.” Castlelake clinched the deal from Malaysia’s AirAsia after edging out US lessors, funds and leasing units of major Chinese banks in a tightly contested deal, said the people.<br/>