Aircraft Parts Joint Venture

In 2006, Summit was approached by the management team of an aftermarket aircraft parts company. The company had identified two MD 90-30 aircraft in Taiwan for purchase, but needed a financial partner capable of closing this international transaction quickly. In less than three weeks, Summit developed a financial and operating agreement with the company, resolved international tax and legal issues associated with the transaction and recertified the aircraft with the FAA. 

In connection with the closing, the aircraft were flown to California for inspection by all parties and the transaction closed successfully. The V2525-D5 engines were immediately sold to another financial institution, and Summit’s operating partner began to part out the aircraft and pre-market the nacelles, avionics and other flight control surface parts.

Both Summit and the operating partner continue to share in the economic profits of this transaction. The plane has been fully parted out and Summit has some inventory remaining for sale.