Caisse de dépôt et placement du Québec is investing $2.6 billion to create an aircraft leasing and financing platform with GE Capital Aviation Services.
The two companies will use the platform to acquire modern aircraft from airline companies and lease them back to the same companies under long-term leases. GE Capital Aviation Services will source and manage the platform’s transactions.
“This platform will provide financing solutions to airlines to help support the growth of their fleet and answer essential industry needs,” said Michael Sabia, president and chief executive officer at Caisse, in a release. “The high-quality aircraft will be chosen for their ability to withstand short-term cyclicality in a sector underpinned by strong long-term growth drivers.”
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The partnership benefits both Caisse and GE Capital Aviation Services by allowing the former to enter the aircraft leasing and financing industry and by helping the latter grow its business, according to the press release.
“Through this platform, CDPQ’s stable capital and GECAS’ extensive expertise and network will combine to identify the best opportunities globally,” said Sabia. “Working with world class operators such as GE is a fundamental part of our investment strategy, and this announcement is yet another example of this strategy in action.”