The deal marks the beginning of a strategic relationship between Republic and Volvo Aero Services in the quest for similar transactions. Volvo Aero Leasing is providing the funding for the purchase of the aeroplane, which is currently on lease to Delta Air Lines for the next year and a half.
“This is a perfect example of [our] strategy to align ourselves with a leader in the aviation industry to seek out mutually beneficial transactions,” said a spokesperson for Republic. “We intend this to be the first of many transactions.”
Claes Malmros, president & CEO of Volvo Aero Services, said, “We see this as the beginning of a strategic partnership. Republic’s expertise is finding value-added transactions for all types of assets. Our expertise is in managing the assets to maximise value. Together we can create a great business relationship.”
Republic will handle the leasing of the aircraft and engine while Volvo Aero Services, the largest independent airframe and engine parts distributor in the world, will manage the teardown and overhaul, with eventual disposal of the aircraft and its parts managed jointly.