Aircraft leasing sector consolidation continues: Jetscape completes merger with M1 Commercial Jets
Jetscape Aviation Group has announced the completion of the merger and restructuring transaction with M1 Commercial Jets (M1CJ). M1CJ was previously owned by M1 Leasing, a subsidiary of the private investment holding - M1 Group (M1).
Jetscape was founded in 2000 and is engaged in commercial aircraft leasing, management, remarketing and advisory services - providing innovative, custom-tailored solutions to commercial aircraft owners and operators worldwide. Jetscape currently owns and manages 35 aircraft with 18 airline operators in 15 countries. Jetscape is also the exclusive remarketing agent for 7 aircraft on behalf of 2 airline customers.
and M1CJ have established a new holding company, Jetscape Aviation Group Ltd (JAG Ltd) based in the British Virgin Islands. JAG Ltd is now 57% owned by M1 Leasing, while Jetscape's original shareholders maintain 43% of the holding. The shareholders have collectively subscribed to USD37 million in new equity capital.
The newly formed group will be run by Jetscape's existing management team, lead by John Evans as Chairman and CEO, and will trade under the Jetscape brand. The JAG Ltd Board of Directors will comprise four prior Jetscape directors along with five directors appointed by M1.
The combined group's balance sheet will have approximately USD560 million in total assets, USD405 million in total liabilities and USD155 million in shareholders' equity.
JAG Ltd owns and manages 35 aircraft on lease to 18 airline operators in 15 countries, including the ownership of 18 Embraer E-Jets on lease to 9 operators in 9 countries with a total average fleet age of less than 3 years. The group has a remaining firm order backlog with Embraer for four E-Jets, up to 10 purchase options and up to 10 purchase rights. All, but one, of the firmly contracted deliveries is committed for lease.
John Evans, Jetscape's Chairman and CEO, stated: "We are thrilled to welcome M1 Leasing as our new partner. M1 is a respected and successful global investor that brings a wealth of knowledge, experience and considerable capital resources to Jetscape. The diversity of our shareholding group, which now includes our management team and high net worth investors from three continents, reflects the international market that we serve and remains a differentiating factor for Jetscape."
Evans added, "In addition to their many investments, M1 is the largest private shareholder of Royal Jordanian Airlines (a Jetscape customer), thus a major contributor to Jetscape's future success in the rapidly developing Middle Eastern and African aviation markets".
Among the listed lessors, shares in ALAFCO rose 3.9% yesterday, while AerCap gained 3.5% and Aircastle rose 1.5%.
Selected aviation suppliers daily share price movements (% change): 24-Jan-2011
