ST Engineering, Temasek Incorporate Cargo-Focused Lessor Juniper

Seletar
ST Engineering is currently converting the first A320P2F at its Seletar facility.
Credit: Chen Chuanren

MRO company Singapore Technologies (ST) Engineering and Temasek have incorporated Juniper Aviation Investments Pte. Ltd., a leasing business focusing on freighter aircraft. 

Both parties signed a joint-venture (JV) agreement in May to create Juniper and hold equal numbers of shares. 

Juniper plans to build a portfolio valued at about $600 million within five years consisting of 20-25 freighters, depending on the mix of narrowbodies and widebodies. The JV will finance the aircraft through a mix of equity and debt.  

ST Engineering said the leasing business was expected to “address the growing demand for freighter aircraft as e-commerce and air cargo volumes expand across the globe.” Collaborating with Airbus under the brand name Elbe Flugzeugwerke (EFW), it is the only passenger-to-freighter conversion program for A320 family aircraft. 

In May, ST Engineering signed a LOI with Global Crossing Airlines to lease up to five converted Airbus A321P2F aircraft, making it one of Juniper’s initial clients. The first A321 will join the fleet in April 2022 and placed on lease in the fourth quarter of 2022. ST Engineering also will provide maintenance services for the lease period.

Chen Chuanren

Chen Chuanren is the Southeast Asia and China Editor for the Aviation Week Network’s (AWN) Air Transport World (ATW) and the Asia-Pacific Defense Correspondent for AWN, joining the team in 2017.