Lufthansa Technik to acquire 15% minority interest in AeroTurbine

Kalendercover 2009Lufthansa Technik AG and AeroTurbine Inc., a subsidiary of the International Lease Finance Corporation (ILFC) that markets engines and aircraft parts, have announced their intention to enter into a partnership. Under the terms of the agreement AeroTurbine will supply Lufthansa Technik AG with aircraft and engine components, while Lufthansa Technik will provide technical services for aircraft components of AeroTurbine and additionally supply the Miami-based company with surplus material for resale.

To this end, subject to the agreement of the cartel authorities, Lufthansa Technik AG will acquire a 15 percent interest in AeroTurbine. If the partnership proceeds to the satisfaction of both partners, Lufthansa Technik can exercise the option to increase its holding to 19.9 percent. This new partnership builds on the Hamburg-based company’s already close relationship with AeroTurbine and will strengthen its strategic collaboration with the world’s largest independent aircraft leasing company, ILFC.

“We could not be happier about our new partnership with Lufthansa Technik,” said AeroTurbine President and Chief Executive Officer Michael King. “Both companies hold leadership positions in their sectors of the aftermarket, and this alignment will serve to make us both even stronger.”

“We are very excited about our new relationship with AeroTurbine and ILFC,” added August Wilhelm Henningsen, Chairman of the Executive Board of Lufthansa Technik. “Both companies offer products and services that support our strategy of growth and further cost reductions. With this agreement we will be able to further expand the support offerings of the entire Lufthansa Technik Group.”

The Chief Executive Officer of ILFC, Henri Courpron, described the agreement as the logical extension of the companies’ established market cooperation. “This new partnership is a first step in developing a broader relationship between Lufthansa Technik and ILFC, which will leverage our core products and processes to generate a significant value for our businesses and will further advance ILFC’s strategy to provide complete aircraft lifecycle solutions to its customers.”

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