Germany's MTU Maintenance has created two new Dutch-based joint ventures with Japan's Sumitomo Corporation aimed at broadening their activities in commercial aircraft engine leasing.
The two sides have established MTU Maintenance Lease Services, which is 80%-owned by the German side, as well as Sumisho Aero Engine Lease, in which Sumitomo holds a 90% share.
MTU says the former will provide short- and medium-term leasing options to airlines, lessors and maintenance providers while the latter will concentrate on long-term leasing.
“The increased demand for engine leasing calls for an expansion of our existing lease business," says MTU Aero Engines commercial maintenance president Stefan Weingartner.
He says the ventures bring together MTU's specialist maintenance knowledge - covering several powerplant types, among them the CFM International CFM56, International Aero Engines V2500 and General Electric GE90 - with Sumitomo's "excellent" leasing market position.
"I am very confident that we will be able to benefit from each other’s competence immensely," he adds. Both ventures are subject to regulatory approval.
Sumitomo's aerospace and transport systems division general manager, Masao Tabuchi, says the tie-up is a "natural progression" of the two sides' previous partnerships.
“This platform gives us new options in expanding our leasing business and we are confident that this cooperation will benefit both companies," he adds.
MTU expects the new Maintenance Lease Services venture to generate more than $100 million in annual revenues in the mid-term.