ST Engineering, Temasek to set up joint venture for freighter aircraft leasing

Singapore Technologies Engineering's aviation asset management unit has agreed to set up a joint venture with Temasek for freighter aircraft leasing, amid growing demand for freighter aircraft as e-commerce and air cargo volumes rise. The joint venture aims to build a portfolio valued at about US$600m within five years, said ST Engineering Tuesday. The joint venture will invest in passenger aircraft to be converted into freighters. Global airline industry body IATA said on Tuesday that the outlook for cargo remains positive and demand is likely to be strong this year. The air freight business has been a bright spot in aviation during the COVID-19 pandemic. Air cargo traffic is expected to expand 13.1% this year, it said. ST Engineering will provide the associated maintenance, repair and overhaul services to these aircraft. In addition, ST Engineering will be the asset and lease manager to the joint venture.<br/>