SoftBank-owned Fortress weighs sale of U.K. jet lessor Falko

Fortress Investment Group LLC, owned by SoftBank Group Corp., is exploring a sale of British plane-leasing firm Falko Regional Aircraft Ltd., according to people familiar with the matter.

Falko, which has a portfolio of 131 aircraft, has attracted interest from suitors including Canada’s Chorus Aviation Inc., the people said, asking not to be identified as the discussions are private. New York-based Fortress is working with an adviser on the potential sale, they said, though no final decision has been made and a transaction may not be completed.

A representative for Fortress declined to comment. Chorus didn’t respond to calls and emails seeking comment.

Aircraft leasing emerged as a crucial source of financing for the airline industry during the Covid-19 pandemic and ensuing travel restrictions, which hammered demand for flights. Airlines sold and leased back their fleets to raise vital cash, while lessors allowed planemakers to continue deliveries. 

Fortress set up Falko in 2011 following a management buy-in of BAE Systems Plc’s asset-management unit. The private-equity firm has been active in the U.K., agreeing to buy Punch Pubs & Co. late last year, two months after losing to rival Clayton Dubilier & Rice LLC in a takeover battle for WM Morrison Supermarkets Plc.