Sumitomo Mitsui Finance and Leasing Company and Sumitomo Corporation reached an agreement through which SMFL will acquire 65% of the shares of Sumisho Aero Engine Lease from Sumitomo Corp, assuming the approval of the acquisition is granted by relevant authorities.

SAEL is a joint venture company established by Sumitomo Corp and MTU Aero Engines, a major German-based company that manufactures and services aircraft engines. Following the transfer of the shares, SMFL plans to make SAEL a consolidated subsidiary effective from April 2019.

Aiming to meet the wide-ranging needs of airline companies, Sumitomo Corp began leasing aircraft engines after jointly establishing SAEL in 2013 with MTU, which has a strong reputation as a provider of maintenance and parts for aircraft engines.

Following this share transfer, SMFL and Sumitomo Corp intend to expand the scale of SAEL’s operations and raise their profile in the airline industry by broadening the scope of their aviation businesses in partnership with other companies in SMFL and its shareholder group including SMBC Aviation Capital Limited, a global aircraft leasing company.