Global Leaders Directory
Every year we compile a guide to sources of aircraft finance for airlines and lessors. The following was compiled in September 2006. Please email jduchenne@euromoneyplc.com if you would like to make any changes to the directory. Please also email if you would like your company to be included or us to link to your site. Subscribers recieve a hard copy and can access the online supplement, which also includes contact names.
Airfinance banks
Includes aviation finance banks, airport finance finance banks, aircraft finance banks, aerospace finance lenders, aircraft financiers, airfinanciers
ABN Amro's aircraft finance business has been transformed by SovRisc, a $25 billion innovative export credit conduit that it launched in December 2005. SovRisc gives the bank an extremely low funding cost when financing government-guaranteed deals and the bank has used this to win a number of mandates, including a $1.3 billion deal from Air India.
ABSA
Most of ABSA's activities are in smaller aircraft deals, but the bank is keen to work on larger aircraft. Barclays acquired the bank in early 2006.
Alliance & Leicester
A relatively new entrant (it only changed from a building society to a bank in 1995) but it is being increasingly well known and tackling innovative deals. The bank focuses on assets first and it likes working with operating lessors.
Arab Banking Corporation
One of only a few banks that are able to offer both Islamic and conventional finance. The Abu Dhabi bank is not just restricted to Middle Eastern deals.
ANZ Investment Bank
Becoming more active, having worked on a number of deals for Qantas and Allco in the past 12 months. European office specializes in arranging, rather than financing, leases – but is also prepared to lend to Australian and Asian carriers.
Babcock & Brown may be best known for its aircraft leasing subsidiary, but the bank is still active in advising and arranging deals, and on retstructurings.
Banca Intesa
The bank's management team is focused on its merger with São Paulo, preventing major policy decisions. It is believed to be planning to increase its international business. Its airfinance team has stayed busy managing Leonardo, its innovative loan securitization, and is working on a successor – Da Vinci.
Bank Austria Creditanstalt
Focuses on corporate jets.
Bank of America
The bank's international portfolio is managed by Montrose Capital, a boutique that the bank has a stake in. It is active is US aircraft trading.
This experienced aircraft finance team is increasingly prepared to take asset risk and is targeting more structured deals. Is keen to close deals with Asian and Latin American carriers.
Bank of China
China's second-largest bank is still focused on its home market, but will consider foreign deals.
Bank of Tokyo-Mitsubishi UFJ
The merger of Bank of Tokyo and UFJ has left the bank with two Japanese leasing companies – Diamond Lease and UFJ Central Lease. While uncertainty about the product has stopped it from structuring deals in the past 12 months, 2007 looks set to be a very busy year for the bank.
Barclays
Export credit specialist that benefits from the bank's large number of international branches. Very experienced team.
Bayern LB
Bayern LB is back. The German bank, formerly Bayericshe Landesbank, has finished dealing with bankruptcies at Air Canada and Sabena and has started lending again using this experience.
The bank is more asset focused than before and is participating in other banks' transactions rather than arranging deals.
BBVA
Looking to expand in aviation finance, having hired Iberia's head of finance.
Very strong and visible French bank. BNP offers a wide range of products to airlines including export credit, French optimized products (FOP), securitization, loans, bonds and predelivery payments.
Caja Madrid
A key player in Spanish operating lease market.
Calyon
Calyon was formed by the merger of Crédit Agricole Indosuez and Crédit Lyonnais, the bank has a strong aviation finance heritage and loyal clients. It is keen to expand into engine and freighter finance.
China Construction Bank
The bank has strong ties with Chinese carriers, but increasingly active abroad.
Citigroup
A consistent and reliable lender to airlines – it was one of Boeing's first lenders – the bank takes relationships seriously. It prefers advising to lending, but is prepared to use its balance sheet. The large aviation team is also able to tap in to specialists in other departments, such as hedging. It has strong capital markets knowledge.
CIC
CIC is active in aircraft finance as a debt provider, but rarely arranges.
Commerzbank
Commerzbank likes to lead deals. Has strong links with German airlines, but is active in other European countries and Asia.
Credit Suisse First Boston
Credit Suisse First Boston focuses on capital markets – particularly operating lease securitizations.
DBS
Singapore's largest bank is one of the biggest aircraft finance lenders in Asia and has strong relationships with the region's airlines. It is growing its portfolio quickly.
Deka Bank
Deka has a strategy of participating rather than leading deals. It is keen to expand in Asia, particularly in India and China.
Deutsche Bank
Deutsche Bank is split into capital markets and global banking and both are active in aviation.
The US-based capital markets team is an active trader in aircraft and aircraft bonds, while the European and Asian office is keen to return to structuring and lending to airlines after a couple of quiet years.
Dubai Islamic Bank
The bank is believed to be working on an Islamic retail fund.
DVB is not able to compete on simple-vanilla debt, so specializes in financing assets rather than credits.
EastMerchant
Specialist asset finance bank. It took a break from aircraft finance in 2003, but is becoming more active.
Erste Bank
Specializes in secondary market deals and has a good reputation for understanding aircraft.
EBRD
The European Bank of Reconstruction and Develoment is a popular source of back-up financing for in eastern Europe, Russia and central Asia.
European Investment Bank
Was a useful source of finance for eligible airlines during the downturn.
Fortis Bank
Fortis has split its aviation commitments into two: one focusing purely on aircraft and engine operating lessors, with the other concentrating on airline clients.
One of the first banks to invest time in understanding how aircraft values behave, PK Airfinance specializes in complicated asset-backed deals.
Heleba
Aircraft finance mainly handled out of Dublin office.
HSBC
Has strong relationships with Asian carriers and able to offer French optimized product leases to Chinese airlines through its French subsidiary, CCF.
Aircraft finance is a key market for HSH Nordbank and the bank is keen to take asset risk. The bank also has a Dublin operating lessor to help it manage aircraft.
HVB
Firmly back in the market after a short break. Mainly participating, rather than leading.
IFC
Regular financier of emerging market airlines, the World Bank's private bank is prepared to finance deals that other banks would not consider – but will only invest in good business plans.
ING Bank
After a couple of quiet years ING came back in 2006 and is planning to grow its portfolio even more in 2007. ING is a strong Ex-Im loan provider and is looking to expand its European export credit business.
Specialist bank that has closed a number of innovative aircraft deals in South Africa.
Industrial and Commercial Bank of China
One of China's largest banks, mainly focuses on domestic carriers.
Investec
Very active in aircraft finance, Investec was one of the first banks to finance new Indian airlines. Specializes in emerging market deals and is keen to syndicate debt.
JP Morgan
Mainly focused on US airlines but also has strong relationships with lessors – very involved in Terra Firma's bid for Awas. Strong in capital markets.
KBC
Relatively quiet but still active.
KFW Ipex Bank
Long-term player and committed to aviation. Growing its portfolio and is keen to diversify.
Kuwait Finance House
Strong in Islamic finance and a key investor in Millennium Aircraft Finance Leasing, it is the first Shariah-compliant aircraft leasing company.
LB Baden-Wuttemburg
Has a long track record in aviation but it is not a key part of the bank's strategy.
Lehman Brothers
Lehman specializes in financing leasing companies and represented Cerberus in its acquisition of debis Airfinance (now AerCap).
LloydsTSB
Has taken a strategic decision to exit aircraft finance but still managing its own portfolio.
Macquarie
Was a leading arranger of tax leases until regulatory changes. Now usually a principal investor.
Merrill Lynch
The shortage of EETCs means that Merrill Lynch is far less visible than it was in 2000 and 2001, but the bank is more active than it was then. It has closed a number of loan transactions for US airlines.
Mizuho Corporate Bank
Covers airlines in Europe and the Middle East with both aircraft finance and general corporate finance products.
Morgan Stanley
Morgan Stanley's ownership of Awas meant that it was difficult for it to market to lessors and the sale has been a welcome relief for the capital markets team.
Natixis Transport Finance continues to grow and offer a wide range of aircraft finance products.
NordLB
Active financier of operating leases. NordLB is a committed aviation lender.
Rabobank
Active Dutch bank. Rabobank has strong relationships with KLM, but is also regularly involved in the Ex-Im market.
RBC Capital Markets
Niche player in aircraft finance but very active in airport finance.
The Royal Bank of Scotland subsidiary offers both financing and operating leases. Since it was established five year ago, RBS Aviation Capital has been one of the most active lenders and has been involved in a variety of structures, including tax leases, European aircraft bonds and export credit.
Sachsen LB
Aircraft finance handled by EastMerchant.
Scotia Capital
Conservative lender with strong airline and lessor relationships.
Société Générale
More selective than the other French banks, Société Générale is most interested in structured deals than plain loans. The bank has won French optimized product mandates in China.
Sumitomo Mitsui Banking
Active Japanese lender, offering Japanese operating lease equity and debt.
Standard Bank
Large South African bank that is keen to work with African carriers.
The bank focuses on Asia, Middle East and Africa – and the aircraft finance portfolio reflects this. Increasing its exposure to aviation.
UBS
UBS closed its first two aviation leasing deals in 2005 and has continued this good run in 2006 by winning a number of impressive mandates and by closing an innovative engine securitization for Gecas.
Wachovia
Strong focus on lease portfolio deals.
WestLB
WestLB has had a good year and is planning to be more active in 2007. Offers a wide range of products – including structuring Japanese operating leases – and is committed to long-term relationships.
Aircraft lessors
Includes aircraft leasing companies/aircraft operating lessors/aircraft operating leasing companies
AerCap
AerCap, formerly known as debis AirFinance, is actively involved in aircraft trading and acts as servicer and/or administrative agent for several large aircraft securitizations. A key highlight for the group was the acquisition of 22 aircraft portfolio from GATX in August. The portfolio represents a mix of A320 and A319, 737-300 and 757-200 and includes aircraft with a diversified age profile. The fleet is on lease to 10 airlines based in nine different countries in the Americas, Europe, Middle East and Asia.
Aergo
Since its formation in late-1999, Aergo has acquired a substantial fleet of aircraft both owned and under management, leased to airlines in Europe, South America, Asia and Africa. Aergo specializes in mainstream narrowbody aircraft.
Airbus Asset Management
Airbus Asset Management was established in September 1994 to remarket and manage used aircraft by Airbus. It has responsibility for the commercial and financial management of the Airbus portfolio, handles the risk management of the portfolio and is responsible for helping to enhance the residual values of Airbus aircraft. Airbus Asset Management has remarketed most Airbus aircraft types via cash sales and medium- or long-term leases. Its fleet comprises of 12 A310s, one A330 and 10 A340s with 10 operators. Since 2005 the company has seen its portfolio reduced from 41 aircraft to 23 because of freighter conversions and purchases.
Aircastle
Aircastle is an aviation company that acquires, owns and leases high-utility commercial jet aircraft to airlines throughout the world. As of August 3, Aircastle had acquired and committed to acquire $1.7 billion of aviation assets, including 66 aircraft leased to 32 lessees located in 23 countries. The company recently completed a successful initial public offering of 9,090,900 common shares priced at $23.00 per share.
Aircraft Leasing and Management
Aircraft Leasing and Management (ALM), which was formed in 1987, is fast expanding its operations, in part because of the return of Japanese investors after the post-September 11 2001 downturn. The company specializes in aircraft remarketing, aircraft acquisition advisory services, lease advisory services and technical management.
ALM only manages aircraft for third parties and has key relationships in Japan, Europe and the Middle East. It has a joint venture with Mitsubishi Corporation, which manages aircraft for a number of Japanese investors. More than 50% of its managed fleet is operated in Europe.
Allco
Allco has a sound history in leveraged leasing. The company merged with Record Investments Limited in July. Allco has acquired 34 aircraft in the past three years and is planning to add another eight by the end of this year.
Aviation Capital Group
Aviation Capital Group (ACG) is a subsidiary of Pacific Life Corp, the US insurance company. ACG has grown its market share and asset base after the acquisition of Boullioun, the Seattle-based lessor, in June 2005. The lessor focuses on leasing new narrowbody commercial aircraft and on providing third-party aircraft and aviation asset management.
AWAS
There is a lot of change taking place at AWAS. A few top managers have left and some have joined since the high-profile acquisition by Terra Firma, the UK investment company, for $2.5 billion. Insiders say that the new owners are searching for sweet spots in the company and also trying to find the best approach to maximizing profits.
The lessor recently hired Franklin Pray, from CIT, as chief executive officer. The company provides wet and dry leasing, financial services such as sale/leasebacks, and operational services.
Babcock & Brown Aircraft Management
Babcock & Brown Aircraft Management (BBAM) is a wholly owned subsidiary of Babcock & Brown. It specializes in fund and asset management, aircraft remarketing, aircraft sales and acquisitions, lease advisory and arrangement. BBAM typically holds aircraft for as long as necessary to reposition the asset before selling it to trade buyers either through syndication or securitization. The lessor recently closed a $1.2 billion warehouse aircraft acquisition syndication arranged by Credit Suisse First Boston and Babcock & Brown. It also has an exclusive joint marketing arrangement with Nomura Babcock & Brown that allows it access to deals in the Japanese market.
BAE Systems
BAE Systems Regional Aircraft trading portfolio consists of 66 BAe 146s, 82 Avro RJs, 40 ATPs, 40 Jetstream 41s and 67 Jetstream 32s. During the 13-year custodianship of this portfolio, BAE has secured more than 1,400 transactions, worth more than $2.6 billion. During this same period about 700 aircraft have been refurbished, customized and redelivered lessees or purchasers. During 2005 it secured lease and sales transactions on 110 aircraft valued at $242 million.
In 2006 it has secured seven new customers for its leasing portfolio.
Bavaria International Aircraft Leasing
Bavaria has been involved in the leasing market for 26 years, serving airlines around the world. Particular highlights include the leasing of the 737-700/-800 and 737-300 and 717 aircraft. Bavaria has been involved in 10 transactions so far this year. It is confident that the market is improving.
BCI Aircraft Leasing
BCI Aircraft Leasing is one of the world’s largest privately held aircraft leasing companies. Its rapidly growing business focuses on the acquisition of high utility commercial jet aircraft that are less than 15 years old for sale/leaseback with leading airlines, and the acquisition of these aircraft for general sale and lease.
The portfolio consists of 737s, 747s, 767s, A320s, A330s, A340s and Bombardier CRJ-900s. The company is an active buyer of used aircraft and is looking to continue to grow the portfolio aggressively in the future.
Boeing Capital Corporation
Boeing Capital is a wholly owned subsidiary of The Boeing Company. Its main business is providing financing solutions for Boeing aircraft and business units.
This includes arranging, structuring and/or providing asset-backed financing – mainly third-party financing – to assist in the sale and delivery of Boeing products and services. Boeing Capital works closely with the US Ex-Im Bank and other commercial financing institutions to provide financing for its products.
CIT Aerospace
CIT specializes in providing operating leases, single investor leases, equity portions of leveraged leases, sale/leaseback arrangements and asset-backed financing.
The company has been involved in aircraft financing for more than 30 years. In 2005 it opened an aircraft leasing operation in Dublin to take advantage of the favourable US tax concessions for companies that establish offshore leasing operations. CIT has purchase commitments for 66 aircraft, which will be delivered through to 2013, valued at $3.3 billion.
Fuyo General Lease
Fuyo General Lease (FGL) is one of the key players in the Japanese operating lease (JOL) market. FGL Aircraft Ireland is a subsidiary and is active in providing operating leases and JOLs. Its portfolio mainly consists of 737 and A319/A320 aircraft on lease to carriers worldwide.
Gecas
Owned by GE, Gecas is one of the top-two global aircraft lessors. It acquired much of its portfolio, and staff, from GPA.
Gecas has diversified its portfolio. It recently closed a securitization for 50 of its engines. The lessor offers airlines secured loans, structured deals, sale/leasebacks, engine finance, inventory management and pilot training.
German Operating Aircraft Leasing
German Operating Aircraft Leasing (Goal) is a joint venture between KG Allgemeine Leasing and Lufthansa. Goal offers pre-owned narrowbody and some widebody aircraft from Lufthansa fleets on operating leases. During September 2005 to August 2006 the company acquired mandates to finance 14 aircraft (eight Bombardier Dash 8 Q400s and six A320s). Five of those aircraft have already delivered, while the remaining will be delivered in 2006 (four) and 2007 (five).
Guggenheim Aviation Partners
Guggenheim Aviation Partners is a privately held US aircraft leasing and aviation investment company. It is owned by the Guggenheim family, several private investors and senior management. The company is fast expanding its operations and has purchased 19 aircraft. It has 16 lessees in 12 countries.
ILFC
International Lease Finance Corporation (ILFC) is the world’s largest leasing company for commercial aircraft. It specializes in leasing new and used commercial aircraft and remarketing aircraft for airlines and financial institutions. About 90% of ILFC’s fleet is leased to non-US carriers and it has an average age of 6.6 years. In 2004 and 2003, the lessor concluded securitizations for 34 and 37 aircraft, respectively. ILFC started the operating leasing market with the first lease in 1973 of a DC-8-51 to Aeromexico.
Itochu AeroTech Corporation
Established in 1990, Itochu AeroTech Corporation is active in providing aircraft on short- and long-term operating leases through its affiliated companies in the US and Europe. The company also provides financing operations, aircraft sale and lease brokerage, technical support and engineering services. It also takes part in Japanese operating leases.
Jetscape
Jetscape is an aircraft lessor and provider of management and advisory services and remarketing solutions. The company’s owned and managed portfolio consists primarily of A320s, 737s and 747s, with a focus on narrowbodies. Over the past year Jetscape acted as adviser to Macquarie Bank for its potential acquisition of AWAS and remarketing agent for jetBlue in the sale of five A320s.
Magellan
Magellan Air is mainly in the business of selling aircraft and manages 44 leases. It specializes in regional and turboprop aircraft. Others include the 737 and A320 family. The lessor had close to 20 aircraft on leases in the past year before they were sold. Magellan is marketing aircraft for Air Vanuatu, based in the South Pacific. The airline is interested in disposing of the aircraft. It is looking at buying regional aircraft and asset management activities for aircraft on lease.
Orix Aviation Capital
Since 2004 Orix aviation has changed its strategy from a Japanese operating lease (JOL) equity provider with a portfolio of A320s to a diversified aviation company. Under the leadership of David Power, the lessor has more than doubled its aircraft fleet and expanded to provide a range of aviation services. Its core services include asset management, fleet acquisitions, sales and marketing, structured finance and capital markets, deal structuring and technical support services. Orix, founded in 1991, is based in Dublin, Ireland, and has key relationships in the US, Latin America, Europe and Asia. It considers itself to be an opportunistic buyer of aircraft of more than 10 years old as these provide a good yield and cash flows.
Pegasus Aviation
Pegasus was formed in 1988 and is one of the world’s largest privately held commercial aircraft lessors. It has refocused its business and it concentrates on buying next-generation narrowbody aircraft. It has added more than $2.5 billion to its portfolio in less than two years and intends growing it by a further $1 billion to $2 billion per year. A partnership with the US private investment firm, Oaktree Capital Management, has added to its new emphasis on providing off-balance-sheet services, such as sale/leaseback and other financial solutions. Other core services include lease advisory, structuring and management services, remarketing, technical support, and aircraft acquisitions.
Pembroke
The recent management buy-out from the Rolls-Royce and GATX Air joint venture has given Pembroke capital to acquire more aircraft. It is expected to return to profitability this year after a period of losses caused by impairment provisions. The lessor does remarketing and asset management for third parties and manages its own portfolio.
The Pembroke Group was founded in 1993. In 1998 Rolls-Royce became a shareholder when the engine manufacturer’s aircraft leasing activities were merged with those of the Irish leasing company. GATX Capital acquired 50% of the lessor in 2001 when it purchased Pembroke equity from International Investment and Underwriting Limited, members of Pembroke management and other parties.
Q Aviation
Founded in 2003, Q Aviation is owned by Q Investments and is based in Fort Worth, Texas. It has additional representatives in Toulouse, France, and Mumbai, India. It purchases and leases aircraft, and provides technical services for its clients. Its fleet contains both narrowbody and widebody aircraft.
Republic Financial
Republic began operations in 1971 and has been involved in traditional aircraft and engine leasing since 1991. Led by Paul Mason and Ian Massey (both formerly of Airbus) Republic’s aviation division invests in a portfolio of companies and has 21 aviation industry professionals, who are based in London, Denver, Washington, DC, and San Francisco. The Denver office supports the market analysis and asset management group.
Republic generates lease returns by taking into account the long-term intrinsic value of aircraft.
At the end of 2005, Republic had a portfolio of 36 aircraft and eight engines. This portfolio was valued at $367.7 million. At the end of 2006, after a change in the types of aircraft it leases, Republic expects to have 17 aircraft and eight engines in its portfolio. This portfolio will be valued at $400.6 million. In addition to narrowbody aircraft, it has aggressively entered the widebody market and expects to acquire 10 A340-300 aircraft. Republic’s focus on widebody aircraft is driven by an increase in lease rates for these aircraft.
“Widebody aircraft are good value opportunity for the next five to six years,” says Stu Weinroth, its managing director. As of February this year, Republic had sold 20 aircraft and acquired six A340-200s. It has also leased four 757 aircraft to UK charter company MyTravel.
RPK Capital Management Group
RPK Capital Management Group acquires, manages, leases and trades commercial aircraft and engines, as well as secured and also unsecured public and private debt instruments.
In addition, RPK Capital actively trades and provides asset management services through its affiliates, AerGlobe Leasing and Management and Halsted Capital Management. Through Halsted Capital, RPK has created the first collateralized debt obligation bond secured by enhanced equipment trust certificates. The company is converting several 737-300/-400s to freighters for Futura Airlines (Spain).
Safair
The lessor celebrates its 45 birthday this year as a subsidiary of Imperial, the logistics company. Its core business is and has always been the leasing of narrowbody aircraft to airlines around the world. Its current favourite is the 737-200, 13 of which have just come off leases. The lessor will look to sell those aircraft and renew the fleet.
It is trying to source 737-300/-400 aircraft. So far this year it has sold five 737-200s and is in the process of renewing wet leases on other aircraft. Existing leases include the 737-200, the 727-200 (freighter and passenger) and the Hercules aircraft. It has just bought a 727-200 freighter. All aircraft acquisitions are financed through Imperial Bank, a subsidiary of Imperial. Safair is based at Johannesburg International Airport, South Africa, with additional facilities at Cape Town International Airport, as well as Singapore, the UK and Ireland.
Sale
Sale’s shareholders – Singapore Airlines (35.5%), WestLB (35.5%), Temasek Holdings (14.5%) and the Government of Singapore Investment Corporation (14.5%) – have mandated Citigroup to look at strategic options for the business. Potential buyers have approached Citigroup, although an IPO is a possibility. Either way, WestLB will leave the company.
Sale has one of youngest fleets in the market, a respected management team and good relationships in the Asian market. The lessor provides direct operating leasing services, sale/leasebacks, structured finance, aircraft remarketing and technical management.
SkyTech-AIC
Skytech-AIC’s widebody aircraft portfolio of five 747-400s and two 777-200s is set to increase because of its equity-raising attempts. In the past 12 months the company has arranged: operating lease/debt funding for four new A321s for GB Airways and BMed; a sale/ leaseback for a GB Airways A320; and disposal/ disposal with leases for eight 737-700s for Maersk. Skytech-AIC is marketing a 737-800 for Pegasus Airlines, disposing of leases for three 737-500s and selling three CRJ700ERs for Maersk. The group has recently been awarded management of two Q400 turboprops on lease to South African Express Airways.
Sojitz Aircraft Leasing
Sojitz Corporation is developing an aircraft operating lease presence through a 100% Dutch subsidiary, Sojitz Aircraft Leasing. SAL placed nine new 737-800 aircraft to Chinese airlines on behalf of FL Group last year. SAL also formed a joint venture with Icelandair, UFJ Central Leasing and Kaupthing Bank in owning and leasing the nine aircraft. It also leased four aircraft (one 767-300ER and three 737 classics) to Varig.
Sumisho Aircraft Asset Management
Sumisho Aircraft Asset Management was established in 2001 by the Sumitomo Corporation to act as a European marketing liaison office from its base in Amsterdam. The lessor’s owned and managed aircraft are leased to operators in the US, Europe and Asia on behalf of Japanese investors. The company specializes in remarketing, operating leases, engine leasing, lease management and advisory, and technical advisory services. It is planning to establish an office in the US.
Tombo Aviation Netherlands
Tombo Aviation Netherlands has not placed any aircraft in the past year. Its main aircraft include the 737-700/-800 NG and the MD-11. A spokesman says demand has not been good but will pick up. The MD-11 freighter business has been very good.
Volito Aviation
Volito has more than doubled its fleet in the past year. The lessor has 22 aircraft in its portfolio and has sold one. Aircraft types include the A319, the A320, the classic 737 and the 737 next-generation. Its clients include Copa, SilkAir, CCM, Indian Airlines, Sichuan Airlines, Taca and TAP.
Aircraft Engine Leasing Companies
Engine lessors, aircraft engine lessors, engine operating leasing, spare engine leasing companies, spare engine lessors
In March Aercap bought Aeroturbine, which specializes in aftermarket commercial aircraft engines and parts sales. Aeroturbine was co-founded in 1997 by its existing chief officers Nicolas Finazzo and Robert Nichols. Key highlights for the company this year include the sale of its last 737-200 (powered by the JT8D) to Westjet in Canada and the acquisition of its first CFM56-5C engine (A340).
Engine Lease Finance Corporation
ELF is a veteran in the aero-engine business and is the largest independent engine lessor. Engine Lease Finance Corporation is owned by BTMU Capital Corporation of Boston, US, a wholly owned subsidiary of Bank of Tokyo-Mitsubishi UFJ – the world's largest financial institution. ELF has its headquarters in Shannon, Ireland. It also has offices in San Francisco and representatives in Boston, London. Hong Kong, Dubai and Singapore.
GA Telesis
GA Telesis is a fast-expanding specialist commercial aircraft, jet engine finance and leasing company. Founded in 2002 by Abdol Moabery and Andrew Toutt, it owns and manages engines for a range of customers from its operations in the US, Brazil, the UK and Dubai. The company recently became the exclusive manager and remarketing agent for ART's fleet of engines. It has a portfolio of CFM International, General Electric, Pratt & Whitney, Internal Aero Engine and Rolls-Royce engines. Its strategy is to move into the regional engines market with the purchase and lease of Embraer engines to add to its fleet of GE regional jet engines.
GE Engine Leasing
GE Engine Leasing is a joint venture between GE Engine Services and GE Capital Aviation Services (Gecas). Itis the leading global provider of aircraft engines and is mainly responsible for the engine leasing activities of Gecas and its affiliates. The company provides GE, Rolls-Royce, Pratt & Whitney and IAE engines. Its services include operational and financial services, short-term rentals, operating leases, sale/leasebacks and structured long-term finance options. Gecas owns and manages aircraft engines for third-party lessors.
MTU Aero Engines
MTU is represented in all thrust and power categories, from the smallest propulsion system for business jets to the world's most powerful engine flying. In August MTU Maintenance Hannover delivered its first PW6000 production engine to customer Pratt & Whitney.
Contact: Bernd Kessler
Orix
Orix's primary area of focus is aircraft, but it does look at some engines. Major transactions include the purchase of six engines from Engine Lease Finance Corporation in 2004 and the subsequent sale of these engines to Willis Lease Finance in 2005.
Pratt & Whitney Engine Leasing
Pratt & Whitney Engine Leasing is a wholly owned subsidiary of United Technologies Corporation working under the direction of the Pratt & Whitney management team.
Rolls-Royce & Partners Finance
Rolls-Royce and Partners Finance was established in 1990 to provide engine leasing services for the Rolls-Royce and IAE engines customer base. It owns and leases commercial aircraft engines across the range of the Rolls-Royce product portfolio, from the AE 3007 to the Trent. The company has recently expanded to include leasing of industrial engines.
Royal Aero Services
Royal Aero Services is active in the purchasing and servicing of engines. The company purchases CFM56-3, -5 and -7 engines, as well as CF6-50s and -80s. It has acquired more aircraft in the past year with the intention of leasing them. It is in the market to acquire about 30 more engines and is a candidate for leasing or parting out.
Shannon Engine Support
Shannon Engine Support (SES) is a wholly owned subsidiary of CFM International, a joint venture between Snecma Moteurs and General Electric. The company was formed in 1998 to support the CFM56 fleet entering into service and also to provide spare engines solutions for small and start-up airlines. SES has grown from a three-person company with a fleet of 13 CFM56 engines to employing more than 20 staff managing 160 engines. Europe and China are the company's two largest markets, with the remaining customers in North America, Asia and Africa.
TES
Total Engine Support opened a new engine disassembly unit in February and transferred into the facility the RB211 535, an E4, a CF6 and two CFM 56-5B engines. In the past 12 months TES has disassembled 74 engines, including eight CF6s, four 535 E4s and two CFM-5B engines.
Portfolio size (number of engines): 14
Contact: Robert James
Volvo Aero Services
Volvo has had an engine division since 1987 but its operations in this field have been created under a new subsidiary company, Volvo Aero Services. VAS sells and leases APUs, regional engines (turboprops) and commercial engines to clients. Its portfolio has been reduced because most of the long-term leasing has been given to Volvo Aero Leasing and also a preference for selling rather than disassembling engines.
Portfolio size (number of engines): 27
Contact: Jeff Plas, Charlie Little [short-term leasing] and David Hornyak [long-term leasing] (all Florida)
Industry Associations
AWG is a not-for-profit legal entity comprising major aviation manufacturers, leasing companies and financial institutions. The purpose of AWG is to contribute to the development and acceptance of policies, laws, regulations and rules that facilitate advanced international aviation financing and leasing.
European Regions Airlines Association (ERA)
ERA is the principal body that represents the interests of organisations involved in intra-European air transport by: influencing regulatory and environmental conditions, facilitating technical cooperation and advancement and gaining public and political support.
International Society of Transport Aircraft Trading (ISTAT)
ISTAT establishes and promotes standards for many aspects of the purchase or sale of commercial transport aircraft and serves as the official voice for the entire commercial transport aircraft secondary marketplace.
Useful links to other Euromoney sites
Euromoney Institutional Investor PLC (corporate website)
Institutional Investor (Americas Edition)
International Financial Law Review
International Securities Financing
Managing Intellectual Property
Trade Finance Magazine
