AeroTurbine Inc. has reached an agreement for entering into a new partnership deal with Lufthansa Technik AG, the world’s largest provider of aircraft-related technical services.
AeroTurbine, a wholly-owned subsidiary of the International Lease Finance Corporation (ILFC), has made the transaction public on Monday, as reported by the Business Wire.
Under the terms of agreement, which is still subject to certain antitrust approvals and customary closing conditions, AeroTurbine and Lufthansa Technik are to engage in a myriad of commercial dealings.
AeroTurbine is contracted to cover the supply of materials to Lufthansa Technik and to purchase maintenance services from their new partner. AeroTurbine has one of the world’s largest pools of certified aircraft engines, parts, and supply chain solutions.
Meanwhile, Lufthansa Technik is one of the leading manufacturer-independent providers of technical services for the aviation industry. The company’s portfolio encompasses the entire spectrum of support in the areas of maintenance, repair, overhaul, modification and conversion of aircraft, engines and their components.
As part of the commercial agreement, Lufthansa Technik will also purchase from ILFC an indirect 15% minority interest in AeroTurbine, with an option to obtain additional 4.9%, if the partnership delivers certain results set by the agreement. ILFC will retain the remaining interest in its subsidiary.
The agreement will only serve to strengthen the companies’ business ties and further underline Lufthansa’s interest in developing a strategic alliance with ILCF, which is the world’s largest independent aircraft leasing company.
AeroTurbine President and Chief Executive Officer Michael King expressed his delight at the agreement with Lufthansa and his belief that the alignment will only add to the competitiveness of both companies and make them even stronger.
Lufthansa and ILFC officials were also pleased with the agreement.
“We are very excited about our new relationship with AeroTurbine and ILFC. We believe they have a unique value proposition with products and services that are supporting our cost reduction and growth strategy. This agreement combines one of the largest aircraft portfolios, with a world class supply chain organization, to provide serviceable material to the Lufthansa Technik family of companies,” said August Wilhelm Henningsen, Chief Executive Officer of Lufthansa Technik.
“The agreement is the logical extension of the companies’ established market cooperation. This new partnership is a first step in developing a broader relationship between Lufthansa Technik and ILFC, which will leverage our core products and processes to generate a significant value for our businesses, and will further advance ILFC’s strategy to provide complete aircraft lifecycle solutions to its customers,” said ILFC Chief Executive Officer Henri Courpron.