FTAI Aviation Profile
FTAI Aviation Ltd. owns, leases, and sells aviation equipment. The company is externally managed by FIG LLC (Manager), an affiliate of Fortress Investment Group LLC (Fortress).
The company's business has been, and will continue to be, conducted through FTAI Aviation Holdco Ltd. (Holdco) for the purpose of acquiring, managing and disposing of transportation and transportation-related equipment assets.
The company is externally managed by FIG LLC (the Manager), an affiliate of Fortress Investment Group LLC, which has a dedicated team of experienced professionals focused on the acquisition of transportation and infrastructure assets.
The company owns and acquires high quality aviation equipment that is essential for the transportation of goods and people globally. Additionally, the company owns and leases offshore energy equipment.
As of December 31, 2023, the company's operations consisted of Aviation Leasing and Aerospace Products. The company's Aviation Leasing business acquires assets that are designed to carry cargo or people. Aviation equipment assets are typically long-lived, moveable and leased by it on either operating leases or finance leases to companies that provide transportation services. The company's leases generally provide for long-term contractual cash flow with high cash-on-cash yields and include structural protections to mitigate credit risk. The company's Aerospace Products business develops and manufactures through a joint venture, and repairs and sells, through its maintenance facility and exclusivity arrangements, aftermarket components for aircraft engines.
Strategy
In general, the company seeks to own a diverse mix of high-quality aviation assets and equipment within its target sectors. The company takes a proactive investment approach by identifying key secular trends as they emerge within its target sectors and then pursuing what are the most compelling opportunities within those sectors. Within each sector, the company considers investments in aviation and offshore assets, including equipment that it leases to operators.
Portfolio
The company owns and acquires high quality aviation and offshore energy equipment that is essential for the transportation of goods and people globally. The company invests across two market sectors: aviation leasing and aerospace products.
Aviation Leasing
As of December 31, 2023, in the company's Aviation Leasing segment, it owns and manages 363 aviation assets, consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were still located in Russia.
As of December 31, 2023, 76 of the company's commercial aircraft and 175 of its engines were leased to operators or other third parties. Aviation assets off lease are either undergoing repair and/or maintenance, being prepared to go on lease or held in short term storage awaiting a future lease. The company's aviation equipment was approximately 77% utilized during the three months ended December 31, 2023, based on the percent of days on-lease in the quarter weighted by the monthly average equity value of its aviation leasing equipment, excluding airframes.
Aerospace Products
The Aerospace Products segment develops and manufactures through a joint venture, and repairs and sells, through the company's maintenance facility and exclusivity arrangements, aircraft engines and aftermarket components primarily for the CFM56-7B, CFM56-5B and V2500 commercial aircraft engines. The company's engine and module sales are facilitated through The Module Factory, a dedicated commercial maintenance program, designed to focus on modular repair and refurbishment of CFM56-7B and CFM56-5B engines, performed by a third party. Used serviceable material is sold through its exclusive partnership with AAR Corp, who is responsible for the teardown, repair, marketing and sales of spare parts from its CFM56 engine pool. The company also holds a 25% interest in the Advanced Engine Repair JV which focuses on developing new cost savings programs for engine repairs.
Corporate and Other
The company's Corporate and Other segment includes offshore energy related assets which consist of vessels and equipment that support offshore oil and gas activities and are typically subject to operating leases.
Asset Management
The company's Manager actively manages and monitors its portfolios of assets on an ongoing basis, and in some cases engages third parties to assist with the management of those assets. The company's Manager frequently reviews the status of all of its assets, and in the case that any are returning from lease or undergoing repair, outlines its options, which may include the re-lease or sale of that asset. The company's Manager plays a central role in developing and executing operational, finance and business development strategies.
The company and its Manager maintain relationships with operators worldwide and, through these relationships, hold direct conversations as to leasing needs and opportunities. Where helpful, the company reaches out to third parties who assist in leasing its assets. As an example, the company often partners with Maintenance, Repair and Overhaul (MRO) facilities in the aviation sector to lease engines and support airlines' fleet management needs.
Customers
The company's customers primarily consist of global operators of transportation networks and global industrial companies, including airlines and offshore energy service providers.
