Max Kingsley Jones/LONDON
Expanding lease management firm Magellan Air has concluded a tie-up with France's TAT Group, and is hunting for further opportunities to boost the 50 aircraft portfolio that it manages.
Magellan was formed last year through hiving off AGES Aircraft Sales and Leasing (Shannon), the Irish arm of aircraft spares specialist AGES Group, which is itself owned by Volvo Aero of Sweden. The leasing company was initially a joint venture between AGES founder Bobby Fessler (through his company Novus Holding) and the AGES (Shannon) management - former GPA executives Ray Tighe and Declan Treacy.
Aircraft leasing and maintenance specialist TAT has taken a 50% shareholding in Magellan, doubling the lease management portfolio to 51 aircraft (46 ATR 42/72s, four Fokker 100s and an A310-300) worth over $400 million. The company manages aircraft on behalf of four leasing companies - three belonging to TAT, and one for GPA-ATR (a joint venture between debis AirFinance, ATR and banks Credit Agricole Indosuez and San Paolo-IMI). The move allows TAT to concentrate on its maintenance business.
"We are looking to boost the portfolio on behalf of our partners," says Treacy. "We are studying niche markets particularly with a view to the expanding freight sector. We have acquired A310-300s, and are looking seriously at the A300-600 and Boeing 767."
Magellan's first A310-300 is undergoing freighter modification at EADS EFW in Dresden, Germany, and discussions are underway with EADS and BAE Systems regarding A300-600 conversion slots. The company is also eyeing the Boeing MD-80, and studying the future cargo role for its ATR fleet. A portfolio expansion will provide the opportunity to raising funding through securitisation packages, says Treacy.
Source: Flight International
