Estonian maintenance provider Magnetic MRO and US-based Crestline Investment have established a joint venture to trade aircraft parts and engines.
Magnetic Parts Trading will acquire aircraft and engines for immediate partout or short-term lease and subsequent disassembly, says its Estonian parent.
It adds that the venture "will aim to invest in the most popular narrowbody aircraft", with the first transactions to be completed by September.
Magnetic MRO's base maintenance activities are focused on Airbus A320-family and Boeing 737 jets. The Tallinn-based service provider has line maintenance approvals for other types too.
It says Crestline Investors – a Fort Worth-based financier that describes itself as an "institutional alternative investment management firm" – will provide the new venture with "the majority of its capital needs". Magnetic MRO will meanwhile manage asset acquisitions and technical operations.
"The agreed capital structure will allow for immediate investments into a significant number of new-generation aircraft and engines, as well as the flexibility to purchase fleets of aircraft, or assets with remaining leases attached," adds Magnetic MRO.
Founder and chairman Jonas Butautis states: "Strategically this is a huge step for Magnetic MRO, getting us firmly into the aviation asset management area, which is yet another way to differentiate from the low-cost, labour-intensive regional MROs."
He adds: "The joint venture with Crestline Investors was formed as a result of a strategic search for similar-minded global financial partners who share [our] views on opportunities to be gained through disciplined investments into mid-life aviation assets."
Source: Cirium Dashboard