Mitsubishi HC Capital Inc. announced Engine Lease Finance Corporation (ELF), its subsidiary engaging in the aircraft engine leasing business based in Ireland, purchased 25 new generation fuel-efficient aircraft engines from Pratt & Whitney, a division of Raytheon Technologies Corporation in the U.S., an aircraft engines vendor. The agreement, including the engines and associated maintenance, is valued at more than $400 million.
ELF has expanded its business field and revenue by developing the aircraft engine leasing business mainly in highly liquid narrow-body aircraft and by entering the aircraft parts out business through making INAV LLC its subsidiary in 2017.
Recently, existing narrow-body aircraft have been shifting to new aircraft with new generation engines. Therefore, ELF has been vigorously increasing its ownership of new generation engines which will become mainstays of the fleet. ELF purchased Pratt & Whitney GTF engines to power Airbus A220 and Airbus A320neo family aircraft.
GTF engines have improved fuel efficiency by approximately 16 percent compared to existing narrow-body aircraft and reduce CO2 emissions by the same amount. In addition, the engines have greatly reduced the aircraft noise footprint by controlling the rotation of the engine fan with an advanced gear system. Through this purchase, ELF has enhanced its ownership ratio of new generation engines to approximately 30 percent. ELF will continue establishing a portfolio which consists of mainly new generation engines, as well as contributing to reducing environmental impact by the aviation industry through its investment in them.
Moreover, the GTF engine for the A320neo family is a collaboration between P&W, Japanese Aero Engines Corporation and MTU Aero Engines AG. Through this transaction, ELF will therefore also contribute to the aircraft market in Japan by increasing the engine type.
“Global Assets” is one of the five areas of focus for Mitsubishi HC Capital group, and it has been developing globally, such as leasing business for aircraft, aircraft engine, marine container and freight car. In the aviation business, Mitsubishi HC Capital invested in Universal Hydrogen Co., a developer of modular capsules for hydrogen storage and the powertrain for hydrogen-powered aircraft based in the U.S. and concluded an MOU with them for the collaboration on hydrogen value chain pilot activities in October.