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.”