ST Engineering, Temasek set up JV for freighter aircraft leasing

Temasek Head of Industrials, Business Services, Energy & Resources Uwe Krueger said the JV would look to find ways to reduce carbon emisssions.

SINGAPORE: Singapore Technologies (ST) Engineering Ltd and state investor Temasek Holdings said they have set up a joint venture for freighter aircraft leasing to take advantage of strong demand for converted passenger planes.

The JV will aim to build a $600 million portfolio of mostly narrowbody planes over the next five years through a mix of equity and debt, with the partners able to pick up passenger jets for conversions at lower than usual prices due to a fall in aircraft values during the pandemic, they said late on Tuesday.