Bahrain-based MENA Aerospace has launched a regional partnership with US-based CSDS Aircraft.
MENA Aerospace provides comprehensive aviation and aerospace services while California-based CSDS Aircraft is an aircraft trading company. The strategic regional partnership will enable both companies to showcase their expertise and extend their reach in the region.
CSDS Aircraft is active in both commercial and business aviation and primarily focuses on buying, selling and leasing aircraft, helicopters and other materials to global clients. The collaboration will enable MENA Aerospace to provide financial solutions for CSDS Aircraft’s sales and leasing business in the region, using its wide network of clients and service capabilities.
The announcement was supported by two transactions between MENA Aerospace and CSDS: a signed mandate that is ongoing for the sale of an Airbus 321, and second is the potential teardown of the Airbus, subject to the new buyer’s discretion.
400 per cent trading and aircraft sales growth
MENA Aerospace’s spare trading and aircraft sales arm has continued to go from strength to strength. With the two latest transactions, growth is expected to hit 350-400 per cent in one year.
Dr Mohammed Juman, Managing Director and Founder of MENA Aerospace explained the background to the new partnership and said finding innovative methods of aircraft funding were proving valuable for customers in the Middle East market: “CSDS provides some new and very innovative ways of financing those aircraft, keeping them alive for a few years and then tearing them down.“
“So that model seems to be a good model for fitting in with investment and investment requirements in this part of the world. And that’s where we said that this innovative and creative way of dealing with aircraft at the end of their lease period would benefit the area.”
New funding model gaining interest from wider Middle East market
He added that the new funding model was gaining interest from other groups, as well as the regional market as a whole.
“The solution provides them with another way that we can start working with them, and providing them with the sorts of solutions that fit their need for that specific period, which is example and exit for at least, that we can actually take over the rest of the lease and provide them with the balance of the funding for those aircraft. And that I think is quite unique in this part of the world.”
MENA Aerospace also attributes its profit rise of up to 400 per cent to the new funding solutions that they can provide for the market and will be taking the model to the UAE and Saudi Arabia.
Dr Juman explained: “The rise has been mainly in the services and in the trading areas because we have started looking at these unique solutions that are very much required in this part of the world. These unique solutions actually are what the owners are looking for in terms of the non conventional ways of dealing with the businesses. That has created this sudden high rise and the revenue stream that we’ve had. The other part of it is that we’ve already had interest for next year.”