Jetscape Aviation Company And M1 Tie The Knot
A new commercial jet holding company was created Wednesday when
Jetscape Aviation Group completed a merger and restructuring
transaction with M1 Commercial Jets, Ltd. (“M1CJ”). The
Tortola based M1CJ was previously owned by M1 Leasing, a subsidiary
of the private investment holding - M1 Group
(“M1”).
Jetscape and M1CJ have successfully established a new holding
company, Jetscape Aviation Group Ltd. (“JAG Ltd.”)
based in the British Virgin Islands. JAG Ltd is now 57% owned by M1
Leasing, while Jetscape’s original shareholders maintain 43%
of the holding. The shareholders have collectively subscribed to
$37M in new equity capital.
The newly formed group will be run by Jetscape’s existing
management team, lead by John Evans as Chairman and CEO, and will
trade under the Jetscape brand. The JAG Ltd. Board of Directors
will comprise four prior Jetscape directors along with five
directors appointed by M1. As a result of the transaction, Jetscape
has diversified its portfolio and the company’s capital base,
revenue and earnings have more than doubled. With the merger,
Jetscape has solidified its position as a global leader in the
70-120 passenger aircraft leasing market.
The combined group’s balance sheet will have approximately
$560 million in total assets, $405 million in total liabilities and
$155 million in shareholders’ equity.
JAG Ltd. owns and manages 35 aircraft on lease to 18 airline
operators in 15 countries, including the ownership of 18 Embraer
E-Jets on lease to 9 operators in 9 countries with a total average
fleet age of less than 3 years. The group has a remaining firm
order backlog with Embraer for four E-Jets, up to 10 purchase
options and up to 10 purchase rights. All, but one, of the firmly
contracted deliveries is committed for lease.
“M1 is a respected and successful global investor that
brings a wealth of knowledge, experience and considerable capital
resources to Jetscape," said John Evans, Jetscape’s Chairman
and CEO. "The diversity of our shareholding group, which now
includes our management team and high net worth investors from
three continents, reflects the international market that we serve
and remains a differentiating factor for Jetscape. In addition to
their many investments, M1 is the largest private shareholder of
Royal Jordanian Airlines (a Jetscape customer), thus a major
contributor to Jetscape’s future success in the rapidly
developing Middle Eastern and African aviation markets.”