20 Mar 2017

China Aircraft Leasing Newsletter 20 March

A CALC Member Company ARI Fully Acquires UAM Aircraft Recycling International Limited a member company of CALC (China Aircraft Leasing Group Holdings Limited) announced it has acquired a 100% equity interest in Universal Asset Management, Inc one of the world's leading global aviation services providers based in Tennessee, USA. ARI Purchases Six Boeing 737-700 Aged Aircraft from Xiamen Airlines Aircraft Recycling International Limited a member company of CALC (China Aircraft Leasing Group Holdings Limited), the first full value-chain aircraft solutions provider in Asia, took delivery of six Boeing 737-700 aged aircraft from Xiamen Airlines. The transaction which marks the first old aircraft acquisition since its establishment. The operating model and financial arrangement of this deal will lay a practical foundation for the asset management of mid-to-late-life fleet to the company, and to the China aircraft recycling industry at large. Boeing, CDB Aviation Lease Finance Announce Order for 30 737 MAX 8 airplanes Boeing and CDB Aviation Lease Finance (CDB Aviation) announced an order for 30 737 MAX 8 aircraft. The order, valued at $3.3 billion at current list prices, was previously unidentified on Boeing's Orders & Deliveries website. Based in Dublin, Ireland, CDB Aviation operates as a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co LTD (CDB Leasing) with registered capital of $US50 million and a fleet of over 200 aircraft, CDB Aviation has over 10 years' experience in the business and is one of the largest and most influential Chinese-owned aviation leasing companies. BOC Aviation Orders Two New Airbus A320 Aircraft BOC Aviation Limited announced that it has added to its investment pipeline by ordering two new Airbus A320-200 aircraft, both of which are committed for lease to an Asian airline. The aircraft are scheduled for delivery in 2017. BOC Aviation is one of Airbus’ top 10 customers globally. Following this latest purchase agreement, BOC Aviation’s cumulative outstanding orders, purchases and deliveries to date for Airbus aircraft total 367 aircraft, including 330 aircraft from the A320 family (of which 67 are A321 aircraft) and 28 A330 aircraft. CDB Aviation seeks growth as it confirms Boeing order China's CDB Aviation Lease Finance may place further jet orders and make . Peter Chang became chief executive in December with a remit to expand. "Our model is very clear: we will become a global leasing platform, which means international, including non-Chinese and Chinese (activities)" selective acquisitions as it expands globally after going public with an order for 30 Boeing airliners. Ireland now China's fifth-largest investment destination in Europe Ireland will seize more opportunities brought by the Belt and Road Initiative, said Zhang Zhewei, China director of the Investment and Development Agency of Ireland. Foreign direct investment from China to Ireland surged in 2016 to $2.9 billion from just $10 million a year earlier. This made Ireland the fifth-largest market in Europe for Chinese investment last year. The massive rise in investment was largely due to HNA Group's purchase of Irish aircraft leasing company Avolon for $2.5 billion. In 2017, Bohai Capital, a subsidiary of HNA Group and Avolon announced the $10 billion purchase of the leasing business of CIT Group, expanding its fleet to 910 aircraft valued at more than $43 billion. Acumen Aviation © 20 March All Rights Reserved.