Helicopters LCI and SMFL launch helicopter leasing joint venture

LCI, a helicopter lessor company and Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL) have signed an agreement to launch a new helicopter leasing joint venture. The agreement allows the joint venture company to acquire nearly 20 helicopters.

Initially, 19 next generation helicopters will be acquired, and the overall value of the new leasing business is approximately valued at US$230 million. SMFL and LCI are co-investors, while LCI is also managing the project.

The main focus while purchasing the new helicopters has been set on aircraft that are capable of performing Emergency Medical Services (EMS), Search and Rescue (SAR) missions and transportation missions, for example in the offshore industry.

This lessee profile, the companies stated, could be a perfect fit for operators that are looking to lease state-of-the-art aircraft, while also benefitting from by the hour maintenance coverage.

Jaspal Jandu, Chief Financial Officer of LCI, said: “LCI is delighted to be launching this new leasing vehicle with SMFL. Our joint venture with this renowned partner highlights the opportunities available in the helicopter leasing marketplace and demonstrates how these aircraft have now become a proven and attractive asset class.”

Shinichiro Watanabe, Managing Executive Officer of SMFL, added: “LCI’s experience, expertise and reputation makes them a natural business partner for SMFL, and we look forward to working with them and combining our respective financial strengths to jointly and professionally manage a successful and dynamic venture.”

With the new joint venture, the companies will put together their specific strengths to make the partnership as efficient and productive as possible. LCI has years of value in creating a business in the aviation helicopter and fixed wing leasing, while SMFL´s aircraft and engine leasing companies have gained knowledge and experience in this area over the years.

LCI was founded in 2004 and is part of the Libra Group, which wholly-owns LCI. Libra Group is an international business group with 30 subsidiaries across six countries. Its subsidiary LCI has been purchasing rotary and fixed wing aircraft with a value of around US$6 billion.

Mitsui Finance and Leasing Company is a leading Japanese leasing company and has been in the business for more than 50 years. The company is being owned by Sumitomo Mitsui Financial Group. SMFL is offering aircraft and engine leases to customers around the globe.