Lufthansa Technik takes share in ILFC's AeroTurbine

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Lufthansa Technik is to take a 15% share in US lessor ILFC’s parts subsidiary, AeroTurbine, as part of a deal under which the German maintenance provider will supply technical services in exchange for components.

While the acquisition has yet to be approved by regulators, Lufthansa Technik says the agreement allows it to increase its shareholding to just under 20%.

Miami-based AeroTurbine will supply aircraft and engine parts to the maintenance company which, in turn, will provide technical services for components and channel surplus material for resale.

ILFC says Lufthansa Technik will purchase an "indirect" minority share in AeroTurbine while the lessor will continue to own the remaining interest.

Lufthansa Technik has not indicated the financial terms of the acquisition. But it says the deal builds on its "close relationship" with AeroTurbine and "will strengthen" its co-operation with ILFC.

ILFC bought AeroTurbine from lessor AerCap for $228 million two years ago.

"Both companies hold leadership positions in their sectors of the aftermarket, and this alignment will serve to make us both even stronger," adds AeroTurbine chief Michael King.

Any increase in the Lufthansa Technik shareholding is conditional on certain performance targets being met under the commercial pact.