Falko will merge with Chorus Aviation Capital

February 28, 2022. Falko will merge with Chorus Aviation Capital to grow its position as a leading aircraft leasing company focused on the regional sector.

Falko Regional Aircraft (“Falko”) today announced that a definitive agreement has been reached between affiliates of Fortress Investment Group LLC (“Fortress”) and Chorus Aviation Inc. (“Chorus”) for the sale of Fortress’ equity interests in certain aircraft managed by Falko together with Falko’s asset management platform to Chorus.

The combined Falko and Chorus platform will have a total of 353 owned, operated, and managed regional aircraft with 32 lessees in 23 countries and will create new opportunities for growth.

The enlarged leasing business will be led by Jeremy Barnes as Chief Executive Officer and the rest of the existing Falko management team.

“We are very excited about this transaction which is a natural fit as it combines two highly experienced platforms with complementary aircraft portfolios and diversified, high-quality customers worldwide. The enlarged platform will also provide access to the broader range of technical skills and capabilities within Chorus which will benefit customers and help maximize asset returns for the benefit of shareholders and Falko’s fund investors” said Jeremy Barnes, Chief Executive Officer of Falko. “This transaction caps over a decade of growth and success under the sponsorship of Fortress. We are grateful for the resources, expertise and partnership that Fortress provided as we built Falko into a truly best-in-class platform in a competitive industry, and we now look forward to an exciting next phase of success as part of Chorus.”

The acquisition is subject to applicable regulatory approvals and customary completion requirements and is expected to close in the second quarter of 2022.

Goldman Sachs International is acting as exclusive financial advisor to Fortress in respect of the sale of Falko. Milbank LLP is acting as legal advisor to Fortress.