HI Uplift: Why smaller will be profitable, claims new lessor

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by Mike Stones
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Sameer Rehman (left) and Christopher Lloyd look forward to serving the smaller end of the market.

Small is beautiful – the book setting out big ideas on small thinking by economist EF Schumacher – sold more than 20m copies worldwide. The two partners behind the new aviation lessor, brokerage and consultancy Aerius Group are also hoping to make it big by focusing small.

Specifically, they plan to focus on the smaller end of the financing, leasing and brokerage markets for both helicopters and fixed-wing aircraft. By small, managing partners Sameer Rehman and Christopher Lloyd mean aircraft with an asset value of less than $10m. But both partners, who combine over 50 years industry experience, are keen to stress they are more than willing to take on leasing and brokerage for the bigger rotary and corporate jet assets if asked by customers.

Single-engine helicopters

For now, at least, they plan to focus on single-engine helicopters, such as the Bell 407, Airbus H125 and Leonardo AW09 and light twin-engine models. In the fixed-wing category, they plan to deal with turbo-prop singles and light twins such as PC-12s and King Airs as well as corporate jets. There are no plans to deal with commercial aviation in the form of airliners or freighters.

There’s more that differentiates the new company’s offer, according to Rehman. That is the personal touch delivered by offering bespoke solutions. “Selling money tends to be commoditised,” he says. “We aim to offer an A-to-Z solution. Each one of our finance proposals to customers is bespoke and customised to their needs based on their balance sheets, the operating environment and the lease structure they are looking for.”

The partners have incorporated Aerius Group in Singapore, with two subsidiaries Aerius Financial and Aerius Aviation. The businesses specialise in financing, leasing, asset management, aircraft sales and consultancy. With offices in Singapore and Dubai, they are designed to serve the worldwide aviation industry by being “globally local”. Aerius claims a wide variety of backers – none of whom wish to be named.

The decision to focus on rotary assets with a value of $10m or less suggests in which markets the new lessor will be active. This includes the emergency medical helicopter services (HEMS) and assets serving the utility market and markets such as heli-tourism.

Underserved worldwide

While the company believes the global market for these types of helicopters is underserved worldwide, it sees particularly strong potential outside developed markets. “You have pockets of leasing companies or financiers, say in the US, but if you are looking at pan Asia and Africa, there isn’t that much available,” Lloyd tells us. “We are seeing a lot of interest, a lot of opportunities in these areas, which is why we talk about single engine helicopters.”

But he is quick to add, they would not turn away business – either leasing or brokerage – dealing with heavier twin helicopters or turbo props and corporate jets. However, there are a lot of players in that market, Lloyd acknowledges. “We are looking to serve parts of the market which are underserved now.”

Meanwhile, Schumacher claimed: “Any intelligent fool can make things bigger, more complex … It takes a touch of genius – and a lot of courage to move in the opposite direction.” Rehman and Lloyd are determined to test the truth of that assertion in the general aviation space.

We will leave the last word to Rehman: “We are ready to go. We’ve got the backers and are now looking forward to an active market.”  If you enjoy our newsletters please encourage colleagues to sign up here. Thanks.

 

HI Uplift Dashboard: Helicopters for sale

Multi engine

  • Total for sale/lease: 291 – one fewer than last week
  • Percentage for sale/lease: 3.94
  • Absorption rate: 4.89 months
  • Total fleet: 7,386 – six fewer than last week.

Single engine

  • Total for sale/lease: 442 – four more than last week
  • Percentage for sale/lease: 3.84
  • Absorption rate: 4.84 months
  • Total fleet: 11,504 – five more than last week.

Source: Amstat, November 29th, 2024.

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