Engine leasing and asset management at MTU

Netherlands - Amsterdam

06.2018

Background Information Current trend: leasing

Aircraft leasing
The percentage of leased passenger air­craft and freight­ers in the world­wide fleet of air­craft has grown steadily in recent years.

In 1970, less than one percent of air­craft were leased, ten years later that figure was 1.7 percent; by 1990 it was almost ten times that. In the mean­time, the figure is estimated at over 40 percent.

Engine leasing
For the past several years, engine leasing has gained in popu­larity – a trend that is also on the up. Lessors include original equip­ment manu­facturers (OEMs) and independent providers.

MTU is one of the players in this growing market.

Growing trend toward leasing

Emerging from a meeting at 10 a.m., Martin Friis-Petersen, Managing Director of MTU Main­tenance Lease Services B.V. (MLS), sits down at his desk in his Amsterdam office. He has just finalized the details of a leasing contract with a customer. His expertise is in higher demand than ever: “These days, more and more air­lines are leasing air­craft and engines, with demand especially for short-term leases continuing to grow,” Friis-Petersen notes. The ad­vantage with leasing: greater flexibility and lower costs of capital.

Joint ventures pool expertise

In 2013, MTU established two joint ventures with Sumitomo, a leading Japanese trading com­pany, to better meet the increasing demand on the part of air­lines for fi­nanc­ing models: MTU ­Main­tenance Lease Services (MLS), in which MTU holds an 80-per­cent stake, and Sumisho Aero Engine Lease with an MTU interest of ten per­cent. Both companies specialize in engine leasing and are head­quartered in Amsterdam. While MLS focuses on short- and medium-term leasing business, Sumisho Aero Engine Lease provides long-term solutions.