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AviationRegister E-Xpert Witness Journal
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Magellan
Sells its
consignment, tear down
and engine leasing concepts
to ACG & Fortis
Aviation Capital Group (ACG) and Fortis Bank bought into Magellan's pitch that consignment, teardown and short term engine leasing would help them add value to older used aircraft in their portfolios.
Fortis Bank is investing though a vehicle called FB Transportation, a company that is a long time ACG investment partner.
Magellan has been searching for a joint venture partner for several years and like its competitors Aeroturbine - was acquired by Avcap, and GA Telesis - received funding from Merrill Lynch; Magellan found a suitable partner in ACG, that compliments its long track record in the aircraft parts aftermarket. AIG has a large portfolio of new and nearly-new aircraft and now that the lessor has the ability to move traded-in older aircraft through Magellan, the lessors marketing capabilities are enhanced. ACG will pass on engine leasing, consignments and tear down aircraft business to Magellan Combining the capabilities of Magellan, ACG and Fortis Bank will launch Magellan into a new $100 million revenue category that will make the company an attractive buy for institutional investors in a few years.
September 2008
