By Rebecca Rayko,
Farnborough, England - Fairchild Aerospace established an independent leasing company for its regional aircraft customers with Newcourt Capital. Millennium Leasing Co was established to help Fairchild Dornier sell its new and used aircraft line of products, providing operating or finance leasing and remarketing services.
Newcourt previously announced a similar agreement with Aero International (Regional) before the latter disbanded earlier this year. The program never got off the ground, largely due to the internal struggles within AI(R). Newcourt says Millenium Leasing is the first of its kind for a regional manufacturer.
Newcourt will buy Fairchild's existing lease portfolio, valued at $140 million, and will purchase and lease additional aircraft each year. Newcourt projects the Millennium portfolio to reach $400 million in two years.
Fairchild hopes the flexible financing options provided by Millennium and backed by Newcourt will both attract customers and entice them to upgrade to their larger jet products.
Newcourt has also obtained an adivisory services contract from Fairchild for the securitization of the aircraft portfolio.