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FTAI Aviation Closes the Acquisition of LMCES

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FTAI Aviation (NASDAQ: FTAI) has successfully completed the acquisition of Lockheed Martin Commercial Engine Solutions (LMCES) from Lockheed Martin Canada. The acquisition includes a 526,000-square-foot aircraft engine maintenance repair facility in Montréal, Québec. This strategic move strengthens FTAI Aviation's Maintenance, Repair, and Exchange (MRE) business, enhancing its ability to provide additional maintenance services to airline customers.

The integration of LMCES with FTAI's existing QuickTurn facility in Miami, Florida, significantly boosts the company's capacity to perform up to 1,350 CFM56 module overhauls and over 500 engine tests annually. Both facilities will be rebranded as FTAI Aviation Canada and FTAI Aviation USA, respectively. CEO Joe Adams stated that this acquisition is a major step towards FTAI Aviation becoming the unrivaled leader in MRE, aiming to provide high-quality, flexible solutions to their global customer base.

FTAI Aviation (NASDAQ: FTAI) ha completato con successo l'acquisizione di Lockheed Martin Commercial Engine Solutions (LMCES) da Lockheed Martin Canada. L'acquisizione include un stabilimento di manutenzione e riparazione di motori aerei di 526.000 piedi quadrati a Montréal, Québec. Questa mossa strategica rafforza il business di Manutenzione, Riparazione e Scambio (MRE) di FTAI Aviation, migliorando la sua capacità di fornire servizi di manutenzione aggiuntivi ai clienti aerei.

L'integrazione di LMCES con l'esistente struttura QuickTurn di FTAI a Miami, Florida, aumenta significativamente la capacità dell'azienda di effettuare fino a 1.350 revisioni di moduli CFM56 e oltre 500 test di motori all'anno. Entrambi gli stabilimenti saranno rinominati FTAI Aviation Canada e FTAI Aviation USA, rispettivamente. Il CEO Joe Adams ha dichiarato che questa acquisizione rappresenta un passo importante verso il posizionamento di FTAI Aviation come leader indiscusso nel settore MRE, con l'obiettivo di fornire soluzioni di alta qualità e flessibili alla loro clientela globale.

FTAI Aviation (NASDAQ: FTAI) ha completado con éxito la adquisición de Lockheed Martin Commercial Engine Solutions (LMCES) de Lockheed Martin Canada. La adquisición incluye un instalación de mantenimiento y reparación de motores de aeronaves de 526,000 pies cuadrados en Montréal, Québec. Este movimiento estratégico fortalece el negocio de Mantenimiento, Reparación e Intercambio (MRE) de FTAI Aviation, mejorando su capacidad para ofrecer servicios de mantenimiento adicionales a los clientes de aerolíneas.

La integración de LMCES con la instalación QuickTurn existente de FTAI en Miami, Florida, incrementa significativamente la capacidad de la empresa para realizar hasta 1,350 revisiones de módulos CFM56 y más de 500 pruebas de motores anualmente. Ambas instalaciones se renombrarán como FTAI Aviation Canada y FTAI Aviation USA, respectivamente. El CEO Joe Adams declaró que esta adquisición es un paso importante hacia el objetivo de FTAI Aviation de convertirse en el líder indiscutido en MRE, apuntando a proporcionar soluciones de alta calidad y flexibles a su base de clientes global.

FTAI Aviation (NASDAQ: FTAI)는 Lockheed Martin Canada로부터 Lockheed Martin Commercial Engine Solutions (LMCES)의 매입을 성공적으로 완료했습니다. 이번 인수에는 몬트리올, 퀘벡에 위치한 52만6천 평방피트 규모의 항공기 엔진 유지보수 및 수리 시설가 포함됩니다. 이 전략적 움직임은 FTAI Aviation의 유지보수, 수리 및 교환(MRE) 사업을 강화하여 항공사 고객에게 추가적인 유지보수 서비스를 제공할 수 있는 능력을 향상시킵니다.

LMCES와 플로리다 마이애미에 있는 FTAI의 기존 QuickTurn 시설의 통합은 연간 최대 1,350개의 CFM56 모듈 오버홀과 500개 이상의 엔진 테스트를 수행할 수 있는 회사의 능력을 크게 증가시킵니다. 두 시설은 각각 FTAI Aviation Canada와 FTAI Aviation USA로 이름이 변경됩니다. CEO Joe Adams는 이 인수가 FTAI Aviation이 MRE 분야에서 독보적인 리더가 되기 위한 중요한 단계라고 밝혔으며, 전 세계 고객에게 고품질의 유연한 솔루션을 제공하는 것을 목표로 하고 있습니다.

FTAI Aviation (NASDAQ: FTAI) a réussi à acquérir Lockheed Martin Commercial Engine Solutions (LMCES) de Lockheed Martin Canada. L'acquisition comprend une installation de maintenance et de réparation de moteurs d'avion de 526 000 pieds carrés à Montréal, au Québec. Ce mouvement stratégique renforce l'activité de Maintenance, Réparation et Échange (MRE) de FTAI Aviation, améliorant sa capacité à fournir des services de maintenance supplémentaires à ses clients aériens.

L'intégration de LMCES avec l'installation QuickTurn existante de FTAI à Miami, en Floride, augmente considérablement la capacité de l'entreprise à réaliser jusqu'à 1 350 révisions de modules CFM56 et plus de 500 tests de moteurs par an. Les deux installations seront rebrandées sous les noms FTAI Aviation Canada et FTAI Aviation USA, respectivement. Le PDG Joe Adams a déclaré que cette acquisition représente une étape majeure vers le leadership incontesté de FTAI Aviation dans le domaine de MRE, visant à fournir des solutions de haute qualité et flexibles à leur clientèle mondiale.

FTAI Aviation (NASDAQ: FTAI) hat die Akquisition von Lockheed Martin Commercial Engine Solutions (LMCES) erfolgreich abgeschlossen, die von Lockheed Martin Canada übernommen wurde. Die Akquisition umfasst eine Wartungs- und Reparatureinrichtung für Flugzeugtriebwerke mit einer Fläche von 526.000 Quadratfuß in Montréal, Québec. Dieser strategische Schritt stärkt das Wartungs-, Reparatur- und Austauschgeschäft (MRE) von FTAI Aviation und verbessert die Fähigkeit, zusätzliche Wartungsdienste für Fluggesellschaftskunden anzubieten.

Die Integration von LMCES mit der bestehenden QuickTurn-Einrichtung von FTAI in Miami, Florida, steigert die Kapazität des Unternehmens, jährlich bis zu 1.350 CFM56-Modulüberholungen und über 500 Motorentests durchzuführen. Beide Einrichtungen werden künftig als FTAI Aviation Canada und FTAI Aviation USA umbenannt. CEO Joe Adams erklärte, dass diese Akquisition einen großen Schritt in Richtung der unbestrittenen Führungsposition von FTAI Aviation im MRE-Bereich darstellt, mit dem Ziel, qualitativ hochwertige und flexible Lösungen für die globale Kundenbasis anzubieten.

Positive
  • Acquisition of a 526,000-square-foot aircraft engine maintenance repair facility
  • Increased capacity to perform up to 1,350 CFM56 module overhauls annually
  • Enhanced ability to conduct over 500 engine tests per year
  • Strengthened position in the Maintenance, Repair, and Exchange (MRE) business
  • Expansion of service offerings to airline customers
Negative
  • None.

Insights

The acquisition of LMCES by FTAI Aviation is a strategic move that significantly expands their Maintenance, Repair and Exchange (MRE) capabilities. This deal enhances FTAI's service offering, potentially leading to increased revenue streams and market share in the aircraft engine maintenance sector. The combined capacity of 1,350 CFM56 module overhauls and over 500 engine tests annually positions FTAI as a major player in the industry. However, investors should consider the integration costs and potential synergy realization timeline. The rebranding of facilities suggests a unified approach, which could streamline operations and enhance brand recognition. While this acquisition appears positive for FTAI's growth strategy, its financial impact will depend on successful integration and market demand for these expanded services.

FTAI's acquisition of LMCES is a significant development in the aviation maintenance sector. The CFM56 engine, targeted by this expanded capacity, is one of the most widely used aircraft engines globally, powering many narrow-body commercial aircraft. This strategic move positions FTAI to capture a larger share of the lucrative engine maintenance market. The addition of the Montréal facility complements FTAI's existing Miami operations, creating a robust North American presence. This geographical diversification could lead to operational efficiencies and improved service for airlines across the continent. The increased capacity for module overhauls and engine tests could potentially reduce turnaround times for customers, a critical factor in the aviation industry where aircraft downtime is extremely costly.

This acquisition aligns with the growing trend of consolidation in the aviation MRO (Maintenance, Repair and Overhaul) market. As airlines seek to optimize their operations post-pandemic, there's an increasing demand for comprehensive, efficient maintenance solutions. FTAI's expanded capabilities position it to meet this demand, potentially leading to increased market share. The rebranding of facilities under the FTAI name suggests a unified market approach, which could strengthen brand recognition and customer loyalty. However, success will depend on FTAI's ability to integrate operations smoothly and leverage synergies between the two facilities. The company's claim of becoming the "unrivaled leader in MRE" is ambitious and will require careful execution to fulfill. Investors should monitor FTAI's performance in the coming quarters to assess the acquisition's impact on revenue and profitability.

NEW YORK and MONTRÉAL, Sept. 09, 2024 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) announces the successful completion of its acquisition of Lockheed Martin Commercial Engine Solutions (“LMCES”), a 526,000-square-foot aircraft engine maintenance repair facility located in Montréal, Québec, from Lockheed Martin Canada. The completion of the acquisition strengthens FTAI Aviation’s Maintenance, Repair, and Exchange (MRE) business with the ability to provide additional maintenance services to airline customers.

The integration of LMCES’ maintenance capabilities with FTAI’s current maintenance capabilities at QuickTurn, in Miami, Florida, gives FTAI capacity to perform up to 1,350 CFM56 module overhauls and over 500 engine tests annually. Both facilities will rebrand as FTAI Aviation Canada and FTAI Aviation USA.

"Completing the acquisition of LMCES is a major step towards FTAI Aviation becoming the unrivaled leader in MRE. We look forward to continuing to serve our global customer base by providing readily available, flexible, high-quality power while savings owners and operators time and money," said Joe Adams, CEO of FTAI.

About FTAI Aviation Ltd.

FTAI owns and maintains commercial jet engines with a focus on the Maintenance, Repair, and Exchange (MRE) of CFM56 and V2500 engines. FTAI’s propriety portfolio of products, including the Module Factory and a joint venture to manufacture engine PMA, helps make CFM56 and V2500 engine maintenance simpler, more cost-effective, significantly faster, and more environmentally friendly. Additionally, FTAI owns and leases jet aircraft which often facilitates the acquisition of engines at attractive prices. FTAI invests in aviation assets and aerospace products that generate strong and stable cash flows with the potential for earnings growth and asset appreciation.

Cautionary Note Regarding Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to expectations regarding FTAI’s ability to further enhance our MRE business, ability to provide additional maintenance services to airline customers, expected synergies across the shops and cost efficiency. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this communication are based upon our historical performance and on our current plans, estimates and expectations in light of information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements, including, but not limited to, the risk factors set forth in Item 1A. “Risk Factors” of FTAI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and FTAI’s Quarterly Reports on Form 10-Q, as updated by annual, quarterly and other reports FTAI files with the SEC.

For further information, please contact:

Alan Andreini
Investor Relations
FTAI Aviation Ltd.
(646) 734-9414
aandreini@fortress.com


FAQ

What company did FTAI Aviation acquire in September 2024?

FTAI Aviation acquired Lockheed Martin Commercial Engine Solutions (LMCES) from Lockheed Martin Canada in September 2024.

Where is the acquired LMCES facility located?

The acquired LMCES facility is a 526,000-square-foot aircraft engine maintenance repair facility located in Montréal, Québec.

How will the LMCES acquisition affect FTAI's maintenance capacity?

The acquisition increases FTAI's capacity to perform up to 1,350 CFM56 module overhauls and over 500 engine tests annually.

What will the acquired facility be rebranded as?

The acquired facility will be rebranded as FTAI Aviation Canada, while the existing Miami facility will be rebranded as FTAI Aviation USA.

How does this acquisition align with FTAI's strategic goals?

According to CEO Joe Adams, this acquisition is a major step towards FTAI Aviation becoming the unrivaled leader in the Maintenance, Repair, and Exchange (MRE) business.

FTAI Aviation Ltd.

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