30 Oct 2019

China Aviation Industry Newsletter 30 October

Air Lease Corporation Announces Lease Placement of Six New Airbus A321neo Aircraft with China Airlines Air Lease Corporation announced 24 October long-term lease agreements with China Airlines (Taiwan) for six new Airbus A321neo aircraft.  The aircraft will deliver to the airline beginning in 2021 through 2022 from ALC’s order book with Airbus. "We are honoured to have been chosen by China Airlines to provide their first six new A321neos in their single-aisle fleet transformation,” said John L. Plueger, Chief Executive Officer and President of Air Lease Corporation.  “The A321neo will provide significantly expanded capabilities which will benefit China Airlines and its passengers far into the future." Beijing's New US$63 Billion Mega-Airport Begins International Flights Beijing's new US$63 billion Daxing airport began its first scheduled international flights as it ramped up operations to help relieve pressure on the city's existing Capital airport. It has four runways and is expected to handle up to 72 million passengers a year by 2025, eventually reaching 100 million. China Southern Airlines and China Eastern Airlines will be the main domestic carriers at Daxing, though Air China will provide a small number of flights too. About 50 foreign airlines, including Finnair, plan to move all or part of their China operations to the airport in the coming quarters. The relocation of all the airlines which will use Daxing is to due to be completed by the winter of 2021. CALC's FL ARI Becomes China's First CAAC Accredited Aircraft Disassembler CALC announced that the Group's MRO joint venture company, FL ARI Aircraft Maintenance & Engineering Company Ltd, has obtained accreditations for aircraft disassembly from Civil Aviation Administration of China making it China's first accredited aircraft disassembler under the CAAC's CCAR 145 Civil Aircraft Maintenance Organization Certificate Regulations. China Eastern, Virgin Atlantic, Air France and KLM Announce Intention to Launch a Joint Venture China Eastern has announced its intention to enter into a joint venture with Virgin Atlantic, Air France and KLM, providing more valuable and attractive joint commercial propositions for customers between Europe and China. The carriers in the joint venture stand to profit from trade with China as the world's second-largest market for pharmaceuticals and the fastest-emerging market for the sector. And China has ambitions to become a powerhouse in exporting generic medication. Fifth C919 Jet Completes Maiden Test Flight The fifth prototype of China's large passenger airliner C919 completed its maiden flight at an airport in Shanghai last week. The domestically made trunk jet took off at around 1000 local from Shanghai Pudong International Airport and returned after 1 hour and 37 minutes. The prototype is mainly undertaking tests covering temperature tolerance, the environment control system, electricity generation and full-aircraft draining. Norwegian to establish a joint venture for parts of its aircraft fleet with China Construction Bank Leasing Corporation The purpose of the joint venture (JV) between Norwegian and China Leasing International Corporation DAC (CCBLI) will be to finance, own and lease aircraft that Norwegian has on order. The agreement will strengthen Norwegian’s financials considerably. Initially, the JV comprises 27 Airbus A320 NEO aircraft to be delivered from 2020 to 2023. CCBLI will also provide aircraft financing for aircraft within the JV. Acumen Aviation © 30 October 2019 All Rights Reserved.