AerCap, Safran Agree Shannon JV
After the closing its acquisition of GECAS earlier this week, AerCap has signed a joint venture agreement with Safran Aircraft Engines related to Shannon Engine Support (SES), a provider of spare engines for CFM International.
The 20-year deal will see SES, the world’s largest lessor of CFM56 and LEAP engines, become a joint company of AerCap and Safran under a 50-50 ownership structure. Both parties say the business will continue to provide lease engine support to CFM, a JV between GE and Safran, and CFM operators.
Headquartered in Shannon, Ireland and with marketing offices in Beijing and Budapest, SES has a portfolio of more than 350 CFM56 and LEAP spare engines. It previously operated as a GE-Safran JV.
“The SES business is a great fit within the AerCap portfolio, with similar expertise, common assets and a complementary customer base to our wholly owned engine leasing business,” says Aengus Kelly, CEO of AerCap.
Jean-Paul Alary, CEO of Safran Aircraft Engines, adds: “The SES joint venture with AerCap is a key asset of supporting our CFM operators, especially as the CFM56 and the LEAP engines continue to achieve strong success in the marketplace.”
The AerCap-GECAS merger is estimated to be four times the size of its nearest rival with assets ranging from more than 2,000 aircraft to more than 900 engines on its books.
Plans for the acquisition were confirmed in March 2021 and AerCap eventually acquired GECAS from its GE parent company for 111.5 million new AerCap shares, which amounted to $23 billion in cash a $1 billion of AerCap notes.