# StanChart weighing options, including sale, of aircraft lessor unit
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-11
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Standard Chartered explores sale of aviation finance unit
Meta Description: Discover why Standard Chartered is considering selling its aviation finance unit, representing 2% of its group income. Find out more here.
URL: https://financedigest.com/stanchart-weighing-options-including-sale-of-aircraft-lessor-unithtml

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SINGAPORE (Reuters) -Standard Chartered said it is looking to explore alternative options, including a sale, for its aviation finance unit, which it said represents around 2% of its group income.

The UK-headquartered bank’s aircraft leasing business in Ireland owns and manages a portfolio of more than 120 planes on lease to 30 airlines, according to its website.

“We believe that a new owner can drive the next phase of growth whilst we continue to focus on our commitment to improve shareholder returns and delivering on our 2024 targets,” Simon Cooper, CEO of StanChart’s corporate, commercial & institutional banking business, said in a statement on Wednesday.

StanChart’s aviation [financing business](https://www.financedigest.com/finance-management-for-small-business.html "Finance management for small business") was ranked as the 21st biggest lessor based on the $3.7 billion market value of its fleet in publisher Airfinance Journal’s 2022 rankings.

The global aircraft leasing [business is facing challenges](https://www.financedigest.com/the-maserati-100-one-hundred-business-disruptors-challenging-the-establishment.html " ‘The Maserati 100’ One Hundred Business Disruptors Challenging The Establishment") of inflation and rising borrowing costs even as aviation demand rebounds. The sector has gone through a big consolidation in the last few years, with [private equity](https://www.financedigest.com/4-trends-that-will-have-a-major-impact-on-private-equity-in-2021.html "4 Trends that will have a major impact on private equity in 2021") firms also jumping in to buy smaller lessors and large players bulking up.

StanChart is working with J.P. [Morgan Securities](https://www.financedigest.com/uks-morgan-advanced-materials-reports-cyber-security-incident-on-its-network.html "UK’s Morgan Advanced Materials reports cyber security incident on its network") plc as its financial advisor on the potential transaction.

(Reporting by Anshuman Daga and Radhika Anilkumar in Bengaluru; Editing by Nivedita Bhattacharjee, Jason Neely and Tomasz Janowski)


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