SMBC flying high after rise in deal volumes

Dublin-based aircraft leasing company SMBC Aviation Capital has said deal volume picked up significantly during its third quarter.

In a trading update, the company said it recorded a high volume of activity in the quarter that has resulted in 38 lease agreements, 21 deliveries and six sales. This brings a total of 63 lease agreements, 39 deliveries, and nine aircraft sold for the year to date.

Formerly part of the Royal Bank Scotland Group (RBS), the company owns and manages over 340 aircraft valued at more than $10bn. SMBC, which is reputed to be the world’s third largest aircraft leasing company, is seeking to grow its market share following its sale to a Japanese corporation last year.

After a somewhat tepid start to this year, which saw the company announcing just 11 lease agreements, eight deliveries and three sales in its first quarter, business has picked up.

"Our company has gone through a lot of changes in the last few years and our focus is on growing the business again. This is why there's been increased activity from us in the market," said the company's chief executive Peter Barrett.

“We’ve also been growing staff numbers consistently over the past 12 months and I expect this to continue,” he added.

SMBC has 92 airline customers and over 40 investors in more than 40 countries around the world. It is headquartered in Dublin and has offices in Shanghai, Beijing, Hong Kong, Singapore, Tokyo, New York, Amsterdam, Toulouse and Seattle.

Formerly known as RBS Aviation Capital, the company was established in 2001 by Irishman Domhnal Slattery, who sold it to RBS. SBMC came into existence following the €5.8 billion acquisition of the business last year from RBS to the Japanese consortium led by Sumitomo Mitsui Banking Corporation (SMBC). The leasing company took control of SMFL Aircraft Capital Corporation and Sumisho Aircraft Asset Management (SAAM) in April. Both were already owned by Sumitomo Mitsui.

The business has sold more than 210 commercial aircraft valued at over $7billion. More than 94 per cent of the company's fleet is comprised of Airbus A320 and Boeing 737 Next Generation family aircraft and SMBC has made commitments to purchase a further 56 aircraft worth over $3 billion from Airbus and Boeing in the coming years.