Florida-based GA Telesis has launched a specialty finance unit, Structured Credit Products (SCP), to provide structured financial solutions for airline, maintenance repair operations and OEM customers.
It will have an initial focus on inventory leasing to meet growing demand for finance for new aircraft. Looking ahead, SCP will explore other aviation finance products including originated secured lending, trading in public and private debt, and investments in other aviation related financial instruments.
SCP will be led by Stuart Weinroth, vice president, an industry veteran with more than 20 years of experience in the aviation finance and leasing sector.
In its first growth phase, SCP will be enhancing the company’s existing inventory leasing platform with a three-year capital allocation of $1 billion towards providing inventory leasing solutions to airlines around the globe. SCP says the airlines’ transition into new-technology narrowbody and widebody aircraft types has put a significant capital investment burden on operators to procure spare parts to support essential operations.
GA Telesis’ existing inventory leasing product provides medium to long-term financing under a lease structure, allowing airlines complete operational flexibility for a fixed monthly rent amount.
For its part, SCP will focus on spare parts related to Boeing 787 and 737MAX and Airbus A350 and A320NEO families of aircraft; however, lease opportunities for equipment related to other aircraft types will also be considered. Abdol Moabery, president and CEO of GA Telesis, said: “This is an unprecedented time in the history of aviation where all of the aircraft manufacturers are delivering new technology aircraft and engines across four aircraft families simultaneously.
“With over 8,700 new technology 787, 737MAX, A350, and A320NEO aircraft in the current back-log, we are prepared to help our airline customers by providing them a customized financing solution to meet their inventory provisioning needs.”
Earlier this week, GA Telesis, along with its shareholder Tokyo Century Corporation, announced an additional $1 billion joint initiative for the financing of new-technology jet engines.