Total Engine Asset Management (TEAM) has signed a contract, through an unnamed affiliate, to lease three pairs of CFM International CFM56-7B26E engines to Indonesian airline Lion Air, a source close to the matter said. The airline has already begun leasing a pair of engines to use on its Boeing 737-900ERs.
TEAM, the joint venture between Japanese industrial conglomerate Marubeni and Singapore's ST Aerospace, is currently bidding for new deal opportunities and aims to have acquired 10 pairs of engines by the end of this year.
Marubeni and ST Aero each committed $50 million towards TEAM's fund. The combined $100 million investment will be used to acquire new and used engines during the first two years.
The group's decision to start with CFM56 engines was determined by the fact that ST Aero already specialises in the maintenance of this engine type, Koichi Tagei, manager of Marubeni's aviation business section said.
The engines will be leased out ideally on around a five-year basis, but TEAM will also carry out shorter or longer lease agreements. In addition to Asia, TEAM will be tackling other markets such as those in Europe and in the USA.
TEAM was set up in August last year, barely seven months after Marubeni launched the aircraft leasing outfit, MD Aviation Capital, in a JV with DVB Bank's aviation investment fund Deucalion.