GA Telesis engine services GA Telesis

Japanese Investors Build Aftermarket Presence

Investors in Japan are also increasing their stake in the engine leasing market not connected to OEMs.

Japanese penetration of the maintenance and engine leasing markets has deepened following investment by Tokyo Century and All Nippon Airways Trading Company (ANATC) in Florida-based GA Telesis.

Once the deal is complete, Tokyo Century will increase its stake in GA Telesis, which focuses on parts, maintenance and asset management services, to 49%, while ANATC will own 10%.

Furthermore, the three parties have revealed plans to set up a joint venture engine leasing business that will operate under GA Telesis’s management and focus on current-technology engines.

This would add another string to Tokyo Century’s bow in the aviation finance market, where it already owns one-fifth of aircraft lessor Aviation Capital Group, as well as 16.7% stake in Jetstar Japan.

While aircraft leasing has many participants, the engine leasing business is split between OEM-connected lessors and a only a handful of independents. Thus more Japanese investment is significant in a market where one of the biggest players, Engine Lease Finance, is already owned by a Japanese company: Mitsubishi UFJ Lease & Finance.

“Our initial investment in GA Telesis from 2012 has performed well and proven our initial investment thesis,” says Koichi Nakajima, deputy president of Tokyo Century. “We have made a commitment to our customers and the industry to provide the best services in aviation.”

ANATC’s investment is also interesting because it marks the latest stage in the development of an aftermarket company that receives relatively little attention, despite having operations in three countries--Japan, Singapore and France--and a workforce of 2,300. It was founded in 1970 to provide aircraft parts services, but has since expanded to cover retail, digital marketing, food and electronics as well.

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