Showcases Capabilities In Aircraft Full Value-Chain Asset Management

CALC has joined hands with its associate company Aircraft Recycling International Limited (ARI) by utilizing flexible aircraft asset management capabilities and rich international second-hand aircraft market resources, to complete the redelivery, export and lease of China's first Airbus A321 which was imported 20 years ago. The Group has received this end-of-lease aircraft from Sichuan Airlines, and subsequently leased to Danish Air Transport (DAT), showcasing the Group's distinctive capability in aircraft full value-chain asset management.

CALC focuses on the increasing demands for aging aircraft retirement solutions and fleet replacement, making its leasing business even more robust. Since 2010, the Group started aircraft trading and leasing second-hand aircraft, bundling packages of retiring aircraft with new aircraft leases. It is the first Chinese lessor to have accomplished second-hand aircraft asset trading in the global arena. ARI, CALC's associate company, has completed around 20 trading and leasing deals for second-hand aircraft and engines in 2017. In addition, ARI, and its wholly-owned subsidiary company Universal Asset Management (UAM), have jointly created a global platform for aging aircraft solutions with an annual treatment capacity of over 40 second-hand aircraft, a substantial number of components and over 17,000 aircraft parts.

The Group and its associated company have significant experience in trading second-hand aircraft globally, but this is the first time the Group has received an end-of-lease aircraft. CALC's project team sufficiently utilizes its professional experience in aviation engineering management to efficiently complete the redelivery, export and lease of this aircraft. Compared with traditional aircraft lessors, CALC excels at providing flexible leasing solutions, together with ARI's well-established platform of aging aircraft solutions, which can fulfil airlines' various demands in different stages. In this transaction, CALC's asset management team closely worked with Sichuan Airlines to complete each part of the deal in compliance with the requirements on aircraft redelivery and export. ARI assessed the maximized value and solutions of aging aircraft in second-hand market. Subsequently, we have successfully leased this 20-year-old A321 aircraft to DAT as operator. This transaction will extend the operational time limit of the aircraft and increase its residual value, which means the Group has utilized and created value at different stages of the aircraft life-cycle. This aircraft was also the first Airbus A321 to enter the Chinese market, carrying significant meaning in Chinese civil aviation history.

Through this cooperation, CALC and ARI have successfully leveraged the comparative strength of their industry expertise. Not only is CALC able to mitigate the risks arising from the residual aircraft value incurred by airline clients, but it is also able to enhance its fleet's flexibility. Meanwhile, ARI also solidifies the Group's capabilities in aircraft asset management with its international influence. Both CALC and ARI have effectively optimized asset allocation, as well as maximized their overall economic benefits.

Mike Poon, Chief Executive Officer of CALC, said, "It is with great pride that we have successfully accomplished the redelivery, export and lease of this aircraft. As the Group continues its fleet expansion and strategic planning, CALC is making great progress towards its ambition to become a specialized aircraft asset manager. Working with ARI, CALC is capable of customizing full-life solutions in each stage for aircraft to meet various needs with respect to global fleet management. Accordingly, CALC can exert its unique advantages in full value-chain among international players in the global aviation industry."

Jesper Rungholm, President of Danish Air Transport, said, "On behalf of everybody at Danish Air Transport, DAT, we are very pleased to take this A321-200 on lease. No doubt this is the start of an ongoing relationship with CALC/ARI and we look forward to the transition of more aircraft in the future. We are very impressed with the capabilities and professionalism of CALC/ARI throughout the entire transition process. This is a first for DAT, taking an aircraft from PRC and I would like to take this opportunity to thank the Aviation Authorities of both China and Denmark for their assistance in de-registration and registration."

(Source: CALC news release)

FMI: www.calc.com.hk