Leasing Firm Formed by Newcourt Capital, Fairchild Aerospace

Fairchild Aerospace and Newcourt Capital have established Millennium Leasing as an independent company providing aircraft operating and finance leases for Fairchild Aerospace customers. Millennium, based in San Antonio, is designed to boost sales of new and used Fairchild turboprop and jet aircraft and to provide a means for re-marketing used aircraft.

The company will initially acquire Fairchild's existing portfolio of leases valued at approximately $140 million and will acquire and offer additional aircraft for lease each year. Its portfolio is expected to reach $400 million within two years, the company said.

Frank Raponi, managing director of Newcourt's aerospace finance unit, said his company was engaged by Fairchild to structure the new leasing company and provide the necessary financial backing. Newcourt also will provide ongoing financial services to Millennium, including advisory services for the securitization of the aircraft portfolio through a financial services contract.

"Newcourt Capital has established itself as a major player in regional aircraft financing," said company president David McKerroll. "This transaction strengthens our position in the industry and reflects our capabilities to service the needs of global manufacturers such as Fairchild Aerospace."

The establishment of Millennium "is an integral part of our continued expansion in the aircraft industry," said Fairchild chairman Carl Albert.

"Airlines are increasingly demanding flexible financing structures and the ability to upgrade to larger aircraft," he said. "Newcourt Capital's structuring expertise and financial backing helped us establish a leasing company that allows us to meet those demands."

Newcourt has offices in Toronto, Montreal and New York.

By Arnold Lewis