Andrew Doyle/MUNICH
Rolls-Royce is to transfer its regional jet aircraft and aero-engine leasing activities into a pair of joint venture companies, following the signing of separate deals with Ireland's Pembroke Capital and GATX of the USA.
R-R chief executive John Rose says the restructuring of its lease portfolio will allow the company to "-expand its business opportunities with the most effective utilisation of its capital".
Under the agreement with Pembroke, the Irish leasing company will be merged with R-R's wholly owned Aircraft Financing and Trading (AFT) subsidiary, which was originally set up as a joint venture with Fokker Aircraft before the latter's bankruptcy.
The new company, which will trade as Pembroke Group, will be 50%-owned by R-R, with Pembroke Capital and other Irish investors holding the rest. It will own a portfolio of 60 aircraft worth $950 million, and manage another 65 on behalf of third parties.
The deal comes a few days after Pembroke announced it was buying 10 Boeing 717s, powered by BMW Rolls-Royce BR715s.
Rose says the merger will allow the UK company to take advantage of Pembroke's "considerable expertise in buying, leasing and financing aircraft".
Shane Cooke, Pembroke chief executive, describes his company's recent order for 717s as "one example of business development where R-R and Pembroke Capital can benefit from mutual co-operation".
GATX, meanwhile, is buying half of Rolls-Royce and Partners Finance (RRPF), one of the world's largest engine leasing companies, with a portfolio of around 90 R-R, International Aero Engines and BMR R-R powerplants.
The US company's executive vice president, Alan Coe, says the deal provides GATX with access to the "deep knowledge and industry ties that R-R has developed". Rose describes GATX as "a partner with a strong balance sheet, an independent credit rating, excellent contacts and a long standing commitment to equipment finance in the airline industry".
GATX is the world's third-largest aircraft lessor, behind International Lease Finance and General Electric Capital Aviation Services. It recently formed an aircraft leasing joint venture with SAirGroup's leasing arm Flightlease.
Source: Flight International
