Willis Lease Finance Corporation Completes Delivery of 4th ATR 72-500 Aircraft under its ConstantThrust® Engine Maintenance Program
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The delivery of the fourth ATR 72-500 aircraft by Willis Lease Finance Corporation to TAG Airlines is a strategic move that exemplifies the company's commitment to expanding its footprint in the regional airline market. This transaction not only bolsters WLFC's portfolio but also reinforces its ConstantThrust® program, which provides airlines with comprehensive engine maintenance and replacement solutions.
From an industry perspective, the integration of new Pratt & Whitney Canada PW127M engines into the ATR 72-500 aircraft represents a significant upgrade in terms of performance and reliability. This could potentially lead to improved operational efficiency for TAG Airlines, which in turn may enhance the airline's competitiveness in the Central American aviation market. The fact that WLFC will oversee maintenance is a testament to the growing trend of leasing companies offering bundled services, thereby adding value and creating a predictable cost structure for their clients.
The announcement by Willis Lease Finance Corporation regarding the completion of a lease agreement with TAG Airlines for four ATR 72-500 aircraft is a notable development for investors. This deal is indicative of WLFC's ability to secure contracts that promise recurring revenue streams through their ConstantThrust® program. The inclusion of maintenance and care for the engines, along with the provision of replacement engines, suggests a long-term service relationship with TAG Airlines.
For shareholders, the implications of such agreements are twofold. Firstly, they offer a degree of revenue predictability, which is highly valued in the volatile aviation industry. Secondly, they reflect the company's strategic emphasis on service integration and asset management, which could lead to increased market share and potentially higher margins due to the economies of scale and scope. Investors should monitor WLFC's ability to replicate such deals, as they could be a bellwether for the company's future financial performance.
The lease of ATR 72-500 aircraft fitted with new engines to TAG Airlines by Willis Lease Finance Corporation is a clear indication of the demand for modernized and efficient regional aircraft in the aviation market. The Central American market, in particular, is experiencing growth in regional air travel and the move by WLFC to establish a foothold in this region could be seen as a strategic endeavor to capitalize on emerging market opportunities.
Moreover, the ConstantThrust® program is an innovative approach to engine maintenance that could set WLFC apart from its competitors. By offering this program, WLFC is not only enhancing its service offering but also potentially setting a new industry standard for engine maintenance and leasing. The success of this program could influence future trends in the aviation leasing industry, where value-added services become a key differentiator among leasing companies.
COCONUT CREEK, Fla., March 21, 2024 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC”) announces it has successfully delivered its fourth ATR 72-500 aircraft to Transportes Aéreos Guatemaltecos (TAG Airlines) (“TAG”) as part of its lease agreements with the airline for four ATR 72-500 aircraft. The aircraft were overhauled and refurbished and fitted with new Pratt & Whitney Canada PW127M engines.
Under the lease agreements, the aircraft are included in WLFC’s ConstantThrust® program for PW127M engines. WLFC will oversee the maintenance and care for the engines and will provide replacement engines as applicable. “We are thrilled to support TAG, our first regional ConstantThrust® airline partner, with a fourth aircraft delivery,” said Austin C. Willis, Chief Executive Officer of WLFC. “We value the relationship we continue to build with TAG, as it expands its service in Central America.”
WLFC provides unique leasing solutions and programs to its global large-fan and regional airline customers to help them navigate today’s complex engine maintenance and supply chain issues, reducing maintenance costs while providing predictability to keep its customers flying.
Willis Lease Finance Corporation
Willis Lease Finance Corporation (“WLFC”) leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair, and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.
Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, and terrorist activity; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission.
| CONTACT: | Lynn Mailliard Kohler |
| Manager Corporate Communications | |
| lkohler@willislease.com | |
| 415.328.4798 |
FAQ
What aircraft model did WLFC deliver to TAG Airlines?
What engines were fitted on the aircraft by WLFC?
What program are the aircraft included in for PW127M engines?
Who will oversee the maintenance and care for the engines?
What services does WLFC provide to its global airline customers?
