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Engine Lease Finance Corporation
News & Press
Press Release January 13th 2012
Another Major Deal for Engine Lease Finance
Engine Lease Finance Corporation (ELF), a wholly owned subsidiary of BTMU Capital Corporation, recently co-financed a $367-million transaction for Etihad Airways, the national airline of the United Arab Emirates. This is the second large transaction for the company in a short period. In December, ELF closed a deal to acquire substantial engine assets from Macquarie Bank Limited.
The current deal, co-financed with Sanad Aero Solutions (Sanad), finances 16 in-service spare engines for Etihad Airways and seven future spare engine deliveries. ELF will purchase and lease back to the carrier six Rolls Royce Trent 700 engines and six International Aero engines. Sanad will purchase and lease back five General ElectricGE90 and six Trent 500 engines. Both transactions are for a 10-year operating term.
The spare engines are for Etihad Airways' entire fleet of passenger and cargo aircraft.
“We are particularly pleased to extend our already strong relationship with Etihad Airways, which continues to set the pace for airline performance,” says Jon Sharp, President and Chief
Executive Officer of ELF. “This transaction is a perfect illustration of how two innovative companies can work together to mutual advantage.”
James Hogan, Etihad Airways President and CEO, says: “These spare engine sales and lease back transactions provide the airline with a long-term financing solution for its entire spare engine fleet while mitigating residual value risk and providing competitive cost of ownership over the long term.”
Press Release – January 11 2012
ETIHAD AIRWAYS SEALS $367 MILLION SPARE ENGINE SALE DEAL WITH SANAD AND ELF
Etihad Airways, the national airline of the United Arab Emirates, has mandated sale and lease back transactions to the value of $367 million to Sanad Aero Solutions (Sanad) and Engine Lease Finance Corporation (ELF), for the financing of its 16 in-service spare engines and seven future spare engine deliveries.
Sanad will purchase and lease back to Etihad Airways five GE90 and six Rolls Royce Trent 500 engines and ELF will purchase and lease back to Etihad Airways six Rolls Royce Trent 700 and six IAE V2500 engines. Both transactions are for a 10-year operating lease term.
The spare engines are for Etihad Airways' entire fleet of passenger and cargo aircraft.
James Hogan, Etihad Airways President and Chief Executive Officer, said: “These spare engine sales and lease back transactions provide the airline with a long-term financing solution for its entire spare engine fleet while mitigating residual value risk and providing competitive cost of ownership over the long term.
“We are delighted with the support that we were shown by the market in a very competitive bidding process, and we are pleased to mandate such strong partners as Sanad and ELF.”
Troy Lambeth, Sanad Chief Executive Officer, said: “We are excited to expand our relationship with Etihad Airways through this transaction. It is another significant milestone in our shared mandate to establish Abu Dhabi as a global aerospace hub and expands the foundation for further cooperation and partnership between our companies.”
Jon Sharp, President and Chief Executive Officer of ELF, said: “We are particularly pleased to extend our already strong relationship with Etihad Airways, which continues to set the pace for airline performance. This transaction is a perfect illustration of how two innovative companies can work together to mutual advantage.”
28/9/11 – Engine Lease Finance
to Acquire Aircraft Engine Leasing Assets from Macquarie
Engine Lease Finance Corporation (ELFC) has entered into an agreement with Macquarie Bank Limited (Macquarie) to acquire 47 aircraft engine assets. Upon completion of the transaction, ELFC’s owned and managed portfolio will include close to 300 modern aircraft engines. The transaction will also extend ELFC’s existing customer base to more than 80 airlines and maintenance, repair, and overhaul companies. Subject to the necessary consents, ELFC will also assume the servicing of a portfolio of seven additional engines owned by a third party, which will further enhance ELFC’s substantial portfolio of managed assets. ELFC President and CEO Jon Sharp said, “The acquisition of these engines allows ELFC to immediately enhance our near-term strategies for growth. We continue to pursue revenue and portfolio growth through sale and leaseback transactions, engine order positions, and other portfolio opportunities in line with our strategic business objectives. We are also pleased to note the continued and substantial support ELFC enjoys from our parent companies.”
27/9/11 – Bank of Tokyo-Mitsubishi UFJ to Acquire
Deal Strengthens BTMU Subsidiary’s Global Top 3 Industry Position
NEW YORK, September 27, 2011 – Bank of Tokyo-Mitsubishi UFJ (BTMU) today announced that its leasing and structured asset-based financing subsidiary BTMU Capital Corporation (BTMUCC) – through BTMUCC’s subsidiary Engine Lease Finance Corporation (ELFC) – has entered into a definitive agreement with Macquarie Bank Limited (Macquarie) to acquire certain aircraft engine assets. The transaction is expected to be completed in the fourth quarter of 2011
Spare Engine Leasing June 2010
Availability – Risk = Peace of Mind
Scheduled engine maintenance, foreign object damage, faults, campaigns and other unscheduled engine removals – all are among the reasons that airlines need to access spare engines to keep their fleets in the air.
In the past, airlines owned their own spare engines, and many still do. But over the last two decades, operators have increasingly turned to leasing as the most cost-effective way of accessing spare engines, and as the business has grown, so have the variety and scope of programs available to them. As recently as 20 years ago, only around 1 per cent of spare engines were leased. By the turn of the century, that number had grown to 10 per cent and now stands at close to 25 per cent of the total spare engine population.
DVB Bank, Mitsubishi Corporation (UK) & ELF
24.03.2010
DVB Bank SE (DVB), the Frankfurt-based bank that specialises in transport finance, Mitsubishi Corporation (UK) Plc (MCUK), the London subsidiary of Mitsubishi Corporation (MC), the global trade and investment company and Engine Lease Finance Corporation (ELF), the world’s largest independent aero-engine lessor, have formed a joint venture company, Deucalion MC Engine Leasing Limited, incorporated in Ireland, for the purpose of investing in commercial aircraft engines subject to leases with airlines worldwide.
Engine Leasing Specialist of the Year 2010 Award
ITM
Many airlines are also finding that their funding options have been curtailed through the withdrawal of finance, and this situation has led them to conserve cash in any way they can, disposing of assets which are lying idle. As a result many are re-examining funding options – including leasing – to support their operations. One company which has been providing first-rate asset management solutions to airlines throughout the world since 1989 is Engine Lease Finance Corporation (ELF).