KLIM, Arena Aviation Plan $1.5 Billion Aircraft Leasing Venture

Kennedy Lewis Investment Management is teaming up with Arena Aviation Capital to take advantage of Covid-19’s disruption of the airline industry.

KLA Aviation Finance will seek to buy aircraft and lease them to airlines around the world, according to a statement reviewed by Bloomberg. The $1.5 billion joint venture will initially focus on young and new narrow-body aircraft.

The Covid-19 pandemic sent a shockwave through airlines, pushing carriers like Latam Airlines Group SA and Groupo Aeromexico SAB into bankruptcy. The sector still hasn’t fully recovered; passenger volumes in the U.S. remain sharply lower compared to a year ago.

The venture ...