Singapore's ST Aerospace has made its first foray into the leasing business after forming a joint venture with Japan's Marubeni that will offer the CFM International CFM56 family of engines to customers globally.

The new Singapore-based company, Total Engine Asset Management (Team), will be equally owned and jointly managed by the partners. It is expected to begin operations in the second half of 2011.

Team's initial engine leasing portfolio will include the CFM56-3, CFM56-5B and CFM56-7B engines that are used to power the Airbus A320 and Boeing 737 family of aircraft. ST Aero, which has several maintenance, repair and overhaul facilities for aircraft and engines globally, said the joint venture is an extension of its existing expertise and adds a "new dimension" to its capabilities. It would be able to use its technical knowledge and Marubeni's financial and marketing knowledge to offer more options to both existing and potential customers, it added.

"Marubeni has an extensive track record in the investment of engine development programmes and aircraft leasing, as well as in providing sales agency services for commercial aircraft, engines, business jets and various other services including aircraft components and airport ground handling services," said Gentaro Toya, senior operating officer at Marubeni's Transportation Machinery Division.

"We are delighted to partner Marubeni in this joint venture and leverage their strong financing knowledge. Over the last few years, there has been significant growth in the engine leasing market. We believe that this growth will be further propelled by the increased rate of new aircraft deliveries," said Choo Han Khoon, executive vice-president, Engine Total Support at ST Aero.

"This collaboration is our first formal foray into the leasing business, and it now allows us to extend our engine total support expertise to better meet our customers' needs for integrated engine solutions."

Source: Air Transport Intelligence news