Air India and Willis Lease Finance Corporation Ink Historic ConstantThrust® Engine Sale & Leasebacks
September 21 2022 - 3:15PM
Air India has signed definitive sale and lease back agreements with
Willis Lease Finance Corporation (NASDAQ: WLFC) (“Willis Lease”)
for 34 CFM56-5B engines installed on its Airbus A320 family fleet.
The engines will be covered under Willis Lease’s
ConstantThrust® program, which will deliver
significant reliability and cost savings versus a traditional MRO
shop visit program. This is the first
ConstantThrust® sale and leaseback agreement for
aircraft engines by any Indian carrier.
Under the sale side of the transaction, Willis
Lease will purchase from Air India 34 engines powering 13 Airbus
A321 aircraft and 4 Airbus A320 aircraft. Through its
ConstantThrust® program, Willis Lease will provide
replacement and standby spare engines, allowing Air India to avoid
potentially costly and unpredictable shop visits on engines
powering a transitioning aircraft fleet. Willis Lease will also
have an in-country team to coordinate and manage the entire program
and all logistics and transportation
involved. Headquartered in Florida, USA,
Willis Lease is a leading aviation finance company, specializing in
the lease, finance and management of aircraft, spare commercial
aircraft engines and auxiliary power units. Willis Lease’s
ConstantThrust® program leverages those
capabilities and its spare parts, engine and aircraft technical
management services, as well as its aircraft engine maintenance,
repair and overhaul (MRO) services, to deliver programmatic support
to airlines and lessors worldwide.
Speaking on the agreement, CCO of Air India, Mr.
Nipun Aggarwal said, “This is a very unique and landmark
transaction which will enable Air India to eliminate the
maintenance burden and fully de-risk itself from the maintenance
cost uncertainty associated with the engines which were not covered
under any “Power by the Hour” program with the OEMs. This
transaction will allow Air India to de-risk itself operationally,
improve fleet reliability, reduce cost, and optimize cash
flows.”
“Air India ran a rigorous process to evaluate
all options for managing the substantial maintenance, operational
risk and logistical burden these engines would have created, and we
are proud that all the benefits of our
ConstantThrust® program rose to the top in the
end,” said Brian R. Hole, President of Willis Lease. “Air India’s
selection of ConstantThrust® validates our
longstanding belief that traditional options are not the only
options for airlines willing to spend the time to fully investigate
the benefits of our programmatic solutions.”
Willis Lease Finance
Corporation
Willis Lease Finance Corporation leases large
and regional spare commercial aircraft engines, auxiliary power
units and aircraft to airlines, aircraft engine manufacturers and
maintenance, repair and overhaul providers in 120 countries. These
leasing activities are integrated with engine and aircraft trading,
engine lease pools and asset management services supported by
cutting edge technology through its subsidiary, Willis Asset
Management Limited, as well as various end-of-life solutions for
engines and aviation materials provided through its subsidiary,
Willis Aeronautical Services, Inc.
Except for historical information, the matters
discussed in this press release contain forward-looking statements
that involve risks and uncertainties. Do not unduly rely on
forward-looking statements, which give only expectations about the
future and are not guarantees. Forward-looking statements speak
only as of the date they are made, and we undertake no obligation
to update them. Our actual results may differ materially from the
results discussed in forward-looking statements. Factors that might
cause such a difference include, but are not limited to: the
effects on the airline industry and the global economy of events
such as war, terrorist activity and the COVID-19 pandemic; changes
in oil prices, rising inflation and other disruptions to world
markets; trends in the airline industry and our ability to
capitalize on those trends, including growth rates of markets and
other economic factors; risks associated with owning and leasing
jet engines and aircraft; our ability to successfully negotiate
equipment purchases, sales and leases, to collect outstanding
amounts due and to control costs and expenses; changes in interest
rates and availability of capital, both to us and our customers;
our ability to continue to meet changing customer demands;
regulatory changes affecting airline operations, aircraft
maintenance, accounting standards and taxes; the market value of
engines and other assets in our portfolio; and risks detailed in
the Company’s Annual Report on Form 10-K and other continuing
reports filed with the Securities and Exchange Commission.
CONTACT: |
Scott B. FlahertyChief Financial Officer(561) 349-9989 |
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