Aviation Lease Finance (ALF), a major new engine leasing and support business, has been set up by Volvo Aero and the Bank of Tokyo-Mitsubishi Capital (BTMCC), which are pooling the resources of their respective AGES Group and Engine Lease Finance (ELF)subsidiaries.
The deal involves a network of cross-shareholdings essentially designed to give ELF and AGES with a vehicle to handle larger transactions and act as a one-stop shop in the engine aftermarket.
ELF, based in Shannon, Ireland, and majority owned by BTMCC, handles long-term leasing for large spare engines, while Florida-based AGES, 60% owned by Volvo Aero, is a major provider of short-term leases and supplies spares.
Although each of the units will continue to provide their own services, new business will be channelled through ALF, which starts with available capital of $210 million. That will be used to acquire engines and spares. Operations will begin with the lease of four General Electric CF6-80C2s to an unidentified airline in Asia-Pacific.
ALF's ownership will be divided between ELF,with 46%, AGES with 44% and the two parent groupings taking another 5% each. Volvo Aero and BTMCC have also taken cross-shareholdings in each other's subsidiaries.
Source: Flight International
