LOIs Also Inked With HNA Group’s Lucky Air And West Air For Leases Of Four Aircraft

China Aircraft Leasing Group Holdings Limited has entered into the second Aircraft Purchase Agreements with Airbus S.A.S. for two more Airbus A320-200 CEO series aircraft, in addition to the agreement for acquiring two aircraft signed on 31 December 2015, in order to cater for the strong airline customers' demand of the Group's aircraft.

The Group also announced that it has signed Letters of Intent (“LOI”) with two subsidiaries of HNA Group, Lucky Air and West Air, on 5 January 2016 for the leases of two A320CEOs respectively. These four aircraft are expected to be delivered in 2016.
 
“We are seeing strong demand for our aircraft, especially for those with near term deliveries," said Chen Shuang, Chairman and Chief Executive Officer of CALC. "Along with the LOIs with Lucky Air and West Air, as well as our recent lease agreements signed with Sichuan Airlines for three A320s, the team is in active discussions with various airline customers. Thanks to our close relationship with Airbus and diversified financing sources in the global market, CALC is able to place new aircraft under quick delivery schedule to support our airline customers with capital management efficiency and operating flexibility which they required in the dynamic and competitive aviation market.

"The Group will continue to capitalize on the favorable conditions of the aircraft leasing market through proactive enhancement and management of our aircraft portfolio, to bring sustainable growth to our business.”
 
The acquisition of additional aircraft supports CALC’s growth strategy and fleet expansion plan. The second purchase agreement with Airbus brings CALC’s order book to 144 A320 series aircraft. It is estimated that the newly acquired aircraft will be delivered to the lessor by January 2017, and CALC’s fleet will expand to 172 aircraft by 2022. CALC will purchase the two aircraft at an aggregate consideration of no more than $196 million (equivalent to approximately HK$1.53 billion). The consideration will be partly settled by the Group’s internal resources and partly by financing arrangements with banking institutions.
 
CALC’s current portfolio consists of 63 current generation Airbus and Boeing aircraft with an average age of less than 4 years. The Group is speeding up its international expansion plans while strengthening its cooperation with Chinese carriers, and targets to build a balanced portfolio of Chinese and non-Chinese airlines client by 2020.

(Source: CALC news release. Image from file)

FMI: www.calc.com.hk