Aircraft Spare Engine Leasing Affiliates - Rolls-Royce & Partners Finance
The Rolls-Royce & Partners Finance companies (collectively, the “RRPF Affiliates”) are a collection of 50%-owned domestic and foreign joint ventures with Rolls-Royce plc (or affiliates thereof, collectively, “Rolls-Royce”), a leading manufacturer of commercial aircraft jet engines. The RRPF affiliates are primarily engaged in two business activities: leasing of aircraft spare engines to a diverse group of commercial aircraft operators worldwide and leasing of aircraft spare engines to Rolls-Royce for use in their engine maintenance programs..
Aircraft spare engine leasing is separate from aircraft leasing because engines require more intensive technical management. Since engine overhauls are one of the largest airline operating cost segments, each overhaul must be closely managed. Engine lessors work with airline customers to optimize the cost and availability of spare engines.
Due to the high capital value of aircraft, commercial airlines generally maintain a number of spare engines to ensure aircraft are not grounded when engines are removed for normal maintenance, or as a result of failure, resulting in a loss of revenue. Prior to development of the aircraft spare engine leasing business, airlines had to manage engine removals via spare engine ownership, or expensive emergency engine leasing.
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