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Saab Aircraft Leasing (SAL) was formed in early 1998, shortly after the decision was made to cease production of Saab 340 and Saab 2000 aircraft at the Linkoping, Sweden facility.
The new leasing company manages the portfolio of aircraft financed to various airlines, which had ordered the aircraft new from Saab Aircraft. These included both finance and operating leases as well as other structures, many of which were off balance sheet financings.
Managing the portfolio of aircraft is second nature to SAL as most of the staff came from the finance arm of Saab Aircraft Credit AB (SACA). The first used aircraft were placed in the late 1980s and some 100 additional used aircraft were placed by the SACA organization. The market preference for regional jets and strong economics, mainly in the United States, made airlines jump on the regional jet bandwagon, despite the much higher cost. With the market for turboprops saturated, Saab and several others decided to cease unprofitable production, being increasingly frustrated by subsidized competition.
This industry change was actually beneficial for the new leasing company. With competition from new production in the turboprop segment very limited and expensive, there was good demand for used Saab 340s and Saab 2000s. The Saab 340 constitutes a more active market, as there is a steady turnover of...