LCI and Sumitomo Mitsui Finance and Leasing Company (SMFL) have acquired and committed to a further five next generation helicopters.
These additional aircraft bring their total Joint Venture (JV) portfolio to 38 units valued at over US$420 million – a doubling in size in less than two years from when the JV was launched in September 2020 with 19 aircraft.
The most recent helicopters consist of two Airbus H145 D3, two Airbus H145 T2, and one Leonardo AW139. They will be deployed in mission-critical roles in Europe and Asia.
More than 75% of the JV’s total fleet is now deployed on ESG-focused missions such as emergency medical services (EMS), search and rescue (SAR), and serving offshore wind farm operations. The fleet is in operation across various countries including the UK, Germany, France, Spain, Italy and Norway, as well as Australia.
Jaspal Jandu, Chief Executive Officer at LCI, said: “Our continued expansion is a clear demonstration of the initial success and long-term potential of LCI’s partnership with SMFL. Using our collective expertise, I am confident that we can achieve further growth with an increasing focus on socially-aware helicopter missions across the globe.”
Shin Watanabe, Managing Executive Officer at SMFL, said: “The synergy between LCI and SMFL’s shared values and respective strengths continues to deliver impressive results. We will maintain our dynamic and proactive approach so as to contribute positively to society.”
LCI has consistently grown in scale and value as it has diversified over time. The lessor’s highly experienced management team has built strong relationships with aircraft and engine manufacturers, customers, and leading financial institutions.
Since its inception in 2004, LCI has undertaken in excess of US$8 billion of transactions in the fixed-wing and helicopter markets.
Meanwhile, Investec has extended its existing relationship with LCI, financing three Leonardo aircraft that provide offshore transportation services.
The financing is for two AW189 helicopters on lease to an Asian operator, with one operating in Namibia and the other in Malaysia, and one AW139 helicopter on lease to a long-standing African operator operating in Namibia.
“These transactions mark a continuation of Investec’s expansion into strategic helicopter financing and a strengthening of the relationship with LCI,” says Bradley Gordon, Head of Aviation Finance - Africa at Investec Bank. It also represents the first helicopter the bank has financed in Asia.
Gordon notes that the helicopter industry was largely resilient to the impact of Covid-19, due to the essential nature of the work done, including EMS / SAR, fire-fighting, offshore oil and gas services and VIP transportation.
“It’s also a sector with good growth fundamentals. Helicopters are a safe and cost-effective option over shorter distances, with a growing number of applications across sectors, such as offshore renewable installations,” adds Gordon.
Praveen Vetrivel, CFO at LCI, says the financing of the three helicopters further cements the relationship with Investec. “This is the latest chapter in our growing relationship with Investec, which we launched in early 2020 with the financing of an AW169 aircraft. Investec has proven to be a committed and flexible financial partner, and we look forward to continuing to grow our work with them in the future,” says Vetrivel.