Dublin-based Airborne Capital has entered into a capital and business joint venture (JV) in the aircraft leasing sector with Daiwa Securities Group subsidiary Daiwa Securities on November 22, 2024.
Airborne Capital CEO Ramki Sundaram said the JV will expand its existing business in Japan, stating that Daiwa Securities' “deep market reach and innovative solutions” makes the company “an ideal partner”.
As part of the JV, Daiwa Securities Group will contribute its extensive customer base, including high net-worth individuals and corporate clients, while Airborne Capital will provide its expertise in aircraft asset management.
“This formalises our existing collaboration and aims to merge Daiwa Securities' strength in delivering tailored high-value solutions with our aviation expertise, enabling the expanded offering of specialised aircraft leasing products in Japan, a key market in Airborne's global growth strategy,” commented Sundaram.
“In the aircraft leasing sector, we offer products through introductions to major leasing companies in collaboration, targeting high-net-worth individuals and corporate clients," added Daiwa Securities Group CEO and president Akihiko Ogino. "We have built a solid track record of collaboration with Airborne Capital, one of the world's leading aircraft asset management companies. We believe that their business model, which provides tailored solutions to meet customer needs, supports our group’s ‘customer-first operations’.”
The JV will offer comprehensive support to clients through the proposal of Japanese operating lease (JOL) products and the management of leasing services. In addition, the companies plan to implement personal exchanges, including secondments.
All of Airborne Capital's business related to JOL products going forward will be consolidated into the joint venture company.
Airborne Capital's Japanese subsidiary Airborne Capital Japan will undergo a reorganisation into a corporation. Subsequently, Daiwa Securities Group will acquire common shares and non-voting preferred shares of the target company through a third-party allotment. Post-capital increase, the ownership ratio will be split 50/50 between Airborne Capital and Daiwa Securities. The subsidiary is expected to later change its name to ‘Daiwa Airborne’.
The final contract was signed on November 22, 2024, and the payment for the third-party allotment is scheduled for January 2025.
Airborne Capital had entered into a joint venture agreement with Mercuria Investment Group in 2021, forming a new entity in Japan called ‘Mercuria Airborne Capital’. The JV provides Airborne with increased access to Japanese aviation investors. The JV will still continue with the Daiwa partnership acting as a tax product complement.
In addition, an Airborne Capital spokesperson also confirmed to Airline Economics that Airborne Capital had advised MRO Japan on its recent partnership with Elbe Flugzeugwerke GmbH (EFW) for Airbus A320/A321 passenger-to-freighter conversion programme, which was announced earlier in November. Airborne Capital are clearly solidifying their presence in the often-difficult to penetrate Japanese corporate market.
Norton Rose Fulbright's team in Tokyo advised Airborne Capital on the joint venture with Daiwa Securities.