Norton Rose Fulbright advises JALUX on aircraft engine leasing joint venture

Global law firm Norton Rose Fulbright has advised leading Japanese trading company JALUX Inc. (JALUX) on a new joint venture agreement (JV) with BeauTech Power Systems LLC (BPS) to acquire and lease IAE V2500-A5 and Pratt & Whitney GTF PW1100G engines.

IAE V2500 engines are used on the Airbus A320 family of aircraft and Pratt & Whitney GTF PW1100G engines are used on the Airbus A320neo family of aircraft.

This JV will combine BPS's proficiencies in the leasing business with JALUX's strengths and expertise in V2500 and PW1100G MRO relationships. It will also unite the two brands’ customer networks to gain a competitive advantage in the engine leasing market.

BPS and JALUX will each own 50 percent of the new JV, BVJ Engine Holdings LLC (BVJ Engine Holdings), which will be a US entity with offices in Dallas, Texas. BVJ Engine Holdings will initially seek to purchase assets of up to US$150 million.

The cross-border Norton Rose Fulbright team advising on the deal was led by partner Akihiko Takamatsu, with support from senior associates Mai Tezuka and Yosuke Nomura, and trainee solicitor Bea Byrne Hill in Tokyo. New York-based Co-Head of Corporate, M&A and Securities Kessar Nashat, along with partners Ryan L. Waggoner and Michael P. Flamenbaum in New York, and senior associate George Khoukaz in Dallas, advised on US aspects of the transaction. Partner Marc Waha, counsel Nicolas Cassauba and associate Joe Lee advised on antitrust aspects.

Norton Rose Fulbright’s global team of aviation lawyers works with airlines, banks and financiers, lessors, manufacturers, insurers, export credit agencies, governments and regulatory bodies on the full range of aviation legal services. This includes fleet selection programs; partnering arrangements with fellow carriers, travel companies and other third parties; restructurings; competition law compliance; and a range of employment issues. The firm also advises on major aircraft financing and leasing transactions, including acting on significant ‘first-of-their-kind’ matters.