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The China Aircraft Leasing Company (CHD) was formed in 2006 in Hong Kong. It has regional offices in Beijing, Shenzhen, Tianjin, Germany, and Ireland.
Hong Kong on July 1st, 1997 became a semi-autonomous territory within Mainland-China. It covers an area of 1,071 sq km, its population is 6.5 million, and its official languages are Chinese and English.
(COMAC) (CCC) announced at the 2010 China International Aviation and Aerospace Exhibition in Zhuhai that 4 Chinese airlines and 2 leasing companies have placed orders and commitments for up to 100 C919s. The airlines comprise Air China (BEJ), China Southern Airlines (GUN), China Eastern Airlines (CEA), Hainan Airlines (HNA); the lessors are (GE) Capital Aviation Services (GECAS) (GEF) and China Development Bank Leasing Company (CHD).
August 2011: The China Aircraft Leasing Company (CHD) signed a Letter of Intent (LOI) with (COMAC) (CCC) to purchase 20 (CFM) (Leap-X)-powered C919 airplanes.
Hong Kong-based (CHD) plans to lease the C919s mainly to Air China (BEJ), China Eastern Airlines (CEA) and China Southern Airlines (GUN).
The C919 will enter the final design definition phase this year. Detailed design will be completed by 2012 and 1st flight is slated for 2014. According to (COMAC) (CCC)'s timeline, the airplane should receive type certification by 2016, followed shortly thereafter by first delivery.
Wu Guanghui, Chief Designer of the 150 to 170-seat C919, predicted earlier this year that total C919 sales will reach 2,000 over the next 20 years, accounting for >50% of narrow body demand in China.
July 2012: At the Farnborough Air Show, China Aircraft Leasing Company (CHD) signed a Memo of Understanding (MOU) for 36 A320 family airplanes including 8 A321s in a deal valued at $3.1 billion at list prices. The deal did not include any A320neos.
(CHD) Chief Executive Officer (CEO), Mike Poon said the new airplanes would be part of the lessor's plan to grow its fleet from 60 to 100 airplanes by 2015.
September 2012: Merpati (PNM) has reached a Memorandum of Understanding (MOU) with Hong Kong based China Aircraft Leasing (CHD) to lease a total of 60 A320-200s, ERJ-145s and E190s with deliveries scheduled over the next 5 years. According to Merpati (PNM)'s Executive VP Commercial, Sutan Banuara, (PNM) plans to reach a market share of 20% of the Indonesian domestic market by 2017.
March 2013: China Aircraft Leasing Company (CALC) (CHD) chose (CFM56-5B) engines to power 25 new Airbus A320 airplanes. The firm order is valued at $500 million at list prices with deliveries scheduled from 2014 - 2016. “We believe that forming this strategic partnership with (CFM) will be instrumental in helping us expand our business globally,” (CHD) (CEO), Mike Poon said.
The 25 A320s are part of a previously announced order for 36 A320 family airplanes in July 2012. They will initially be placed with Chinese lessees, though (CALC) (CHD) noted it intends to expand into the rest of Asia and build a presence in Europe and the USA.
(CFM) International said its (CFM56-5B) has been chosen to power nearly 60% of all A320 airplanes in service or on order. Two engines are available for A320 airplanes; the (CFM56) and the (IAE) (V2500).
November 2014: Hong Kong-based lessor, the China Aircraft Leasing Company (CALC) (CHD) has signed a memorandum of understanding (MOU) covering 74 Airbus A320neos, 16 A320ceos and 10 A321ceos.
If firmed, this will mean (CHD) has ordered a total of 140 A320 family airplanes. “This new commitment to the A320 family confirms the airplane’s popularity and appeal, offering customers the best value for money, high reliability and best-in-class passenger comfort,” (CHD) (CEO) and Executive Director, Mike Poon said.
In 2012, Poon outlined plans to grow (CHD)’s fleet from 60 to 100 airplanes by 2015.
December 2014: China Aircraft Leasing Group Holdings Ltd (CALC) (CHD) on December 2nd said it has finalized a $10.2 billion deal to buy 100 planes from Airbus (EDS), subject to shareholder approval.
The jets will be delivered over the period 2016 - 2022, and will be funded by bank loans, debt, equity financing and working capital among other means, (CALC) said in a stock exchange filing.
The deal, first announced on November 6, includes 74 A320neo planes. The A320neo is a revamped version of the bestselling 150-seat A320, offering fuel savings of -15% and due to enter service late next year.
Hong Kong-based (CALC) is part of an expanding breed of Chinese leasing companies focusing on medium-haul airplanes for the country’s crowded domestic routes.
June 2015: News Item A-1: China Aircraft Leasing Group (CALC) (CHD) has completed delivery of its fifth Airbus A320 airplane to Qingdao Airlines (QDA) on May 29, at Airbus facilities in Toulouse, France. (CALC) (CHD) also signed a leasing agreement with Air Macau (MCU) to lease 4 Airbus A320s for 144 months. They will be delivered in 2015 and 2016.
News Item A-2: China Aircraft Leasing Group (CALC) (CHD) named Christian McCormick as Managing Director Finance. He spent 14 years with French bank Natixis as (CEO) of Natixis Transport Finance and Global Head of Aviation Finance of the bank. He also held senior roles at Crédit Lyonnais Aviation Group, Aérospatiale, and Société Générale.
July 2015: News Item A-1: "Successful Issuance of First Medium Term Notes in China Broadens Domestic Financing Channels" by WCARN.com July 20, 2015.
The largest independent aircraft lessor in China (China Aircraft Leasing Group Holdings Limited ("CALC" or "the Group") (CHD) is pleased to announce that the Group's wholly-owned subsidiary, China Asset Leasing Company Limited ("CALC (TJ)") has successfully issued its first medium term notes (the "Medium Term Notes") in the Peoples Republic of China (PRC). The five-year RMB340 million Medium Term Notes was a relatively longer term arrangement, comparing with the (RMB)-denominated notes issued in the market. It was rated "AA" by China Cheng Xin International, the leading Chinese credit rating agency which is partly owned by Moody's Investors Service.
Mr Barry Mok, Chief Financial Officer of (CALC) (CHD) said, "(CALC) (TJ) is the 1st aircraft leasing company in the (PRC), as well as the 1st enterprise in the Tianjin Free Trade Zone to issue the Medium Term Notes. We are pleased to have obtained an (AA) rating for the Medium Term Notes from China Cheng Xin International. With a maturity for 5 years, the Medium Term Notes was a relatively long-term arrangement for the aircraft leasing industry. The Group has been actively exploring diversified financing channels and innovative ways to increase its working capital and enhance its financial liquidity. The issuance of the Medium Term Notes has opened up a domestic financing platform for the Group, and has established a new financing channel for short-term financing and ultra-short-term financing in the future. This has further strengthened (CALC)'s credibility in the financial market, laying a stronger foundation for the Group's development to become a full-life aircraft solution provider. The funds raised will be used on aircraft acquisition and fleet expansion, in order to continuously promote the rapid development of the Group's aircraft leasing business."
News Item A-2: China Aircraft Leasing Group Holdings Limited ("(CALC)" or the "Group"), the largest independent operating aircraft lessor in China, announced that its wholly-owned subsidiary registered in Tianjin, China Asset Leasing Company Limited ("(CALC) Tianjin"), was enlisted 1 of the 9 pilot enterprises for the Centralized Operation of Forex Capital of Multinational Companies Program in Tianjin, approved by the State Administration of Foreign Exchange (SAFE). According to the circular issued by (SAFE) concerning the Newly Selected Multinational Enterprises for the Pilot Program for the Centralized Operation of Forex Capital (Integrated Circular  No 301), (CALC) Tianjin is the first ever leasing company in China, which is allowed to form a cross-border foreign currency fund pool. (CALC) Tianjin is also the only leasing company in China which is qualified for the program.
By setting up a master account for domestic funds and international funds respectively, (CALC) Tianjin opens up its link for onshore and offshore capital, which in turn facilitates the use of foreign debts, as well as cross-border flows of capital. It significantly optimizes the Group's flexibility in allocating Forex capital on shore and off shore, facilitating the management and utilization of Forex capital, and lays the foundation for the Group's further international development.
According to the circular concerning the Manual of Procedures for the Centralized Operation of Forex Capital by the Multinational Enterprises in Tianjin (Tianjin Circular  No 66), the policy would allow the business development of the Group and its member companies for the collection and centralization of offshore Forex capital, such as the centralized management of onshore Forex capital, allocation of foreign debt quotas as well as fund collection and payment for ordinary business operations, as well as the settlement netting.
The initiation of the pilot program by Tianjin Free Trade Zone for the leasing company marks a significant step for the innovation in Forex management system, symbolizing the capability and capacity of its financial innovation. (CALC) Tianjin, part of the (CALC) Group, is shouldering the role as the pioneer in internationalization of China's leasing business. It is committed to facilitating industry development, and to sharing its experience in new policies setting and implementation, in order to assist the government for its innovative development of new policies.
Mr Pitney Tang, Senior VP of (CALC), said "(CALC) puts a strong emphasis on enhancing exchanges between the government and enterprises. Since its establishment in the Dongjiang Free Trade Zone in 2010, (CALC) Tianjin has been actively practicing government's new policies in regards to the innovation of leasing industry. We are a forerunner of adopting new models, and the projects we launched have established the showcases for the industry, which helped promote the industry development with our practical experience. Being among the first batch of pilot enterprises and the only company from the leasing industry for the Centralized Operation of Forex Capital of Multinational Companies Program, it has demonstrated the government's recognition of (CALC)'s effort and achievement over the years. It also shows the government's strong support of (CALC)'s future development. We are pleased to be able to further leverage the competitive advantages of (DFTZ) for its favorable policy environment and industry resources, to promote the steady development of our aircraft leasing business and structure innovation. We are honored to have actively participated in the progress of opening up of capital transactions for cross-border activities. We will continue to devote ourselves in assisting the acceleration of the internationalization of China's aircraft leasing industry, and are looking forward to witnessing Tianjin to further enhance its status as an international aircraft leasing center."
In additional to (CALC) Tianjin, the (SAFE) approved pilot enterprises for the Centralized Operation of Forex Capital of Multinational Companies Program in Tianjin, include Motorola and Kerry Oils & Grains (China) Limited.
News Item A-3: China's first airplane disassembly plant, in northeastern Heilongjiang Province, will start operation this year, the city government of Harbin said.
Involving investment of US$2 billion, the plant will become one of the world's biggest centers for the dismantling of retired civil airplanes, with a designed annual capacity of 50 airplanes, according to the city government.
The plant will be operated by the China Aircraft Leasing Group Holding Ltd (CHD), which has purchased a 30-hectare plot near the city's airport for the plant, it said.
Launched in late 2014, the project aims to meet the rising demands from the country's booming aviation industry. Due to a lack of facilities, China sends retired airplanes to the USA to be dismantled.
News Item A-4: China Aircraft Leasing Group Holdings Limited (CHD), the largest independent operating aircraft lessor in China, announced today that Patrick Trant has joined (CHD) as VP Technical. Mr Trant will be responsible for technical oversight of (CHD)'s growing portfolio of aircraft, with a primary focus on aircraft placement, transitions and on-lease management for (CHD)'s overseas clients. He is based in (CHD)'s Dublin office.
Mr Trant joins (CHD) from the Air Lease Corporation (ALE), where he served as Technical Asset Manager. He possesses a solid track record in a variety of senior management, leasing and consultancy roles in the aviation industry. Mr Trant spent the past 17 years working for aircraft lessor, airlines and aviation services companies.
Mr Jens Dunker, Senior VP Aircraft Trading & Global Marketing of (CHD) said, "We are pleased to welcome Patrick to the (CHD) team. Patrick's extensive experience in aircraft management and negotiating leasing agreements in the European market will definitely add value to us, especially as we are continuously building up our fleet and expanding our international business. Our recent partnerships with Pegasus Airlines (PGS), Air India (AIN) and Air Macau (MCU), as well as the completion of our first European export credit financing in February 2015, emphasize our growth into the international aviation market. We look forward to achieving more with Patrick's support."
(CHD) is a publicly listed company on the main board of the Stock Exchange of Hong Kong, and is the first aircraft lessor listed in Asia. Its portfolio is made up of 51 current generation Airbus and Boeing aircraft with an average age of 2.5 years. In December 2014, (CHD) placed a large order of 100 Airbus A320 series aircraft, bringing its order book to 140 A320 series aircraft.
News Item A-5: China Aircraft Leasing Group (CHD) delivered the second new Airbus A320 aircraft to Air India (AIN)/(IND) under a 12-year operating lease agreement for five aircraft. The first delivery was completed February 3 and the remaining aircraft will be delivered by the end of 2015. The delivered A320 aircraft (configured with maximum takeoff weight (MTOW) of 77 tons and Required Navigation Performance (RNP) Authorization Required (AR)) is equipped with Sharklets (2.4-meter tall new wingtip devices, which enhance the fuel-efficiency and payload-range performance of the A320 family resulting in up to -4% lower fuel burn over longer sectors).
News Item A-6: "China Aircraft Leasing Company ((CHD) Signed Lease Agreements with China Eastern Airlines (CEA) for Six A320 Aircraft"
by WCARN.com, July 17, 2015.
News Item A-7: "China Aircraft Leasing Company (CALC) (CHD) Signs Strategic Cooperation Agreement with Eastern Airlines Technic Company, Ltd" by WCARN.com, July 27, 2015.
The largest independent aircraft lessor in China, China Aircraft Leasing Company (CALC) (CHD) has signed a strategic cooperation agreement with Eastern Airlines (EAL) Technic Company, Ltd ("Eastern Airlines Technic") regarding the maintenance and technical consulting services for (EAL)'s current fleet. Based on a mutual beneficial agreement with complementary advantages, (CALC) and Eastern Airlines Technic will explore and establish a long-term strategic cooperation along the aircraft value chain, with quality services.
Based on the agreement, (EAL) Technic will provide (CALC) with aircraft/engine maintenance services and technical advisory services that facilitate the lessor to meet applicable airworthiness requirements. Other services include on-site emergency support, aircraft maintenance cost analysis, parts solutions and training, etc. The cooperation agreement is valid for 3 years. The strategic partnership will promote (CALC)'s standards for aircraft asset management, and lay a foundation for the Group's expanding international business as well as for its aircraft disassembly center project which is progressing by stages. It will, in turn, further enhance (CALC)'s strategy to become a "full value-chain aircraft solutions provider" to offer one-stop aircraft solutions for domestic and international airlines.
Stronger demand for maintenance and repair services for commercial aircraft is expected due to increasing fleet size and average aircraft age of the major Chinese airlines. Industry forecast shows that the aircraft maintenance industry should peak in 2015. By the end of 2015, the China aviation maintenance market will reach 45 billion yuan with considerable profits. However, this high growth market, in particular the high-end segment, is dominated by foreign capital.
Mr Jerry Duan, Senior VP Technical & Asset Management of (CALC) said, "Since our establishment, (CALC) has been pursuing professionalism and specialization, while developing into a full value-chain aircraft solutions provider. Leveraging the core competence of Eastern Airlines Technic in terms of a comprehensive aircraft portfolio and extensive maintenance experiences, the partnership will bring (CALC) better resources and will provide advanced and all-rounded technical support. In return, (CALC) will provide Eastern Airlines Technic with overseas market information, and bridge it with our overseas customers. China Eastern Airlines (CEA) is an important customer, which motivated us to create an innovative business model. Our partnership started in 2013, when (CALC) became the first company in China to complete a bundled package deal of new aircraft leasing and old aircraft trading. Not only does this maintenance and technical consulting collaboration deepen our cooperation with the China Eastern Airlines Group, but it also adds value to our positioning as a full value-chain aircraft solutions provider; and facilitates the further development of China's aviation industry. We look forward to further cooperation with (CEA) and to creating more win-win models."
Eastern Airline Technic Company Ltd was established in 2014. It was formerly known as Eastern Airlines Engineering Technology Company. Serving domestic and international customers, its main business includes airframe maintenance, line maintenance, affiliated parts repair, engine maintenance, maintenance training, engineering services, business jet maintenance, aircraft parts supply chain, aviation equipment maintenance, and other aviation maintenance services. It also offers aircraft maintenance related consulting, as well as agency and investment services. Eastern Airlines Technic aims to develop from an aircraft maintenance unit under China Eastern Airlines (CEA) to an independent and influential aviation maintenance company in the Asia Pacific with extensive presence in 3 to 5 years.
November 2015: News Item A-1: China Aircraft Leasing Group (CHD) has completed delivery of the fifth Airbus A320 aircraft to Air India (AIN)/(IND), marking the 56th delivered aircraft of (CALC) (CHD)’s fleet.
News Item A-2: China Aircraft Leasing Group Holdings (CALC) (CHD) delivered the first of 6 Airbus A320 aircraft to China Eastern Airlines (CEA), marking the 58th delivered aircraft of (CALC)’s fleet.
December 2015: News Item A-1: China Aircraft Leasing Group (CALC) (CHD) delivered the second of 6 Airbus A320 aircraft to China Eastern Airlines (CEA) in Toulouse, France, marking the 59th delivered aircraft of (CALC)’s fleet.
News Item A-2: The China Aircraft Leasing (CHD) Group appointed Barry Mok and Winnie Liu as deputy Chief Executive Officers. Liu has also been appointed (CCO), while Mok will continue his responsibility as (CFO). Also, Pitney Tang has been promoted to (COO).
News Item A-3: China Aircraft Leasing Group (CALC) (CHD) completed its second delivery to Air Macau (MCU) in Hamburg, Germany. The aircraft is financed by The Korea Development Bank, (KDB) Asia Limited, and (KEB) Hana Bank. The newly delivered A321 aircraft is the 61st delivered aircraft of (CHD)’s fleet.
January 2016: News Item A-1: China Aircraft Leasing Group (CHD) signed a letter of intent (LOI) with Jetstar Pacific Airlines (PAH) for two Airbus A320 aircraft, in addition to the agreement for two aircraft signed in November 2015. All 4 A320 aircraft are scheduled to be delivered in 2016. (CHD) also signed lease agreements with Sichuan Airlines (SIC) for the lease of 3 A320s on a 144-month lease term. The 3 aircraft are expected to be delivered in 2016.
News Item A-2: "Chinese Lessor to Buy +2 More A320-200s" by (ATW) Linda Blachly, January 4, 2016.
China Aircraft Leasing Group (CALC) (CHD) has agreed to buy 2 Airbus A320-200ceos, bringing its order book to 142 A320 series aircraft. According to (CHD), the deal is worth “no >$194 million.” Deliveries are estimated to be in November 2016.
(CHD) Chairman & (CEO), Chen Shuang said, “The acquisition of additional aircraft supports (CHD)'s growth strategy and fleet expansion plan. It also reflects our close relationship with Airbus (EDS) and the Group’s ability to source new aircraft to match customer demand under dynamic market conditions. We are seeing strong demand for our aircraft in 2016, and the near term deliveries perfectly match with such demand. 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, while providing our airline customers with capital management efficiency and operating flexibility.”
The Hong Kong-based lessor said its portfolio comprises 63 current generation Airbus (EDS) and Boeing (TBC) aircraft with an average age of less than <4 years. “With the newly signed purchase agreement, (CHD)’s fleet is expected to expand to 170 aircraft by 2022,” it said. “The Group is speeding up its international expansion plans and has strengthened its cooperation with fast-growing carriers from the expanding emerging markets in order to diversify its portfolio. (CHD) targets to build a balanced portfolio of Chinese and non-Chinese airlines clients by 2020.”
News Item A-3: China Aircraft Leasing Group (CALC) (CHD) has entered into the second aircraft purchase agreements with Airbus for +2 more Airbus A320-200ceo series aircraft, in addition to the agreement for acquiring 22 aircraft signed December 31, 2015, to cater to strong customer demand of the Group’s aircraft. (CHD) also announced it has signed letters of intent (LOI)s with 2 subsidiaries of the (HNA) Group: Lucky Air (LKY) and West Air (CHO), on January 5, 2016, for the leases of 2 A320ceos, respectively. These 4 aircraft are expected to be delivered in 2016.
News Item A-4: "(CALC) (CHD) Signs Strategic Cooperation Framework Agreement with China Construction Bank" by China Aviation Daily | January 29, 2016.
China Aircraft Leasing Group Holdings Limited ("CALC" or the "Group"), the largest independent aircraft operating lessor in China, has entered into a strategic cooperation framework agreement (the "Agreement") with China Construction Bank Corporation, Shanghai Branch ("CCB") on asset realization and debenture issuances, including sales of aircraft lease receivables for up to 15 aircraft, within a term of 2 years.
"The Agreement with (CCB) will allow (CALC) to secure various privileged financing services from the professional team of the bank. In particular, (CCB) has expressed its interests in our dollar-denominated aircraft lease receivables realization projects, and intends to adopt innovative and diversified product structures to facilitate us in reducing the overall financing costs of those products," said Ms Winnie Liu, (CALC)'s Deputy (CEO) & Chief Commercial Officer (CCO). "As China's pioneer in aircraft financing, (CALC) introduced and completed one of the nation's 1st realization of lease receivables, demonstrating our innovation in business and financing. We completed realization of lease receivables for 2 aircraft in 2015, and are seeing stronger demand for such products as yuan devaluation has boosted the demand for dollar-denominated fixed-income assets. Going forward, the Group will step up our efforts in capturing the opportunities in the aircraft securitization market."
"The Agreement with (CCB) fosters a closer cooperation between us, further to the (MOU) we've signed for 4.4 billion yuan of intent credit line in June 2015. Over the years, we have established our unique advantages in asset capitalization and diversification of financing channels through realization and financing agreements with different financial institutions. We will continue to develop other innovative financing methods actively, in order to stay financially flexible to support our continuous fleet expansion and further development in offering all-rounded aircraft solutions in the value chain" Ms LIU continued.
(CALC)'s current portfolio consists of 65 current generation Airbus and Boeing airplanes with an average age of less than <4 years. It is estimated that the Group will expand its fleet to 172 aircraft by 2022. 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.
February 2016: News Item A-1: "Singapore Airshow - (CALC) Signs Definitive Agreement for (V2500) Engine to Power A320ceo Family Aircraft Order" by China Aviation Daily, February 18, 2016.
China Aircraft Leasing Group Holdings Limited (CALC) (CHD) has signed a Definitive Agreement for the (V2500) engine to power 8 firm plus 15 option A320ceo family aircraft of the aircraft that (CHD) has on order. This deal was originally announced as a Memorandum of Understanding at the 2015 Paris Air Show.
Deliveries occur in 2016 and 2017. The (V2500) engine is offered through International Aero Engines AG, a multinational aero engine consortium, whose shareholders comprise (Pratt & Whitney) (PRW), Pratt & Whitney Aero Engines International GmbH, Japanese Aero Engines Corporation, and (MTU) Aero Engines.
(CALC)'s portfolio is currently made up of 65 current generation Airbus and Boeing aircraft with an average age of <4 years. The lessor has recently purchased 4 additional A320 aircraft from Airbus (EDS), on top of its large order of 100 A320 aircraft placed in December 2014, bringing its order book to 144 A320 series aircraft.
To date, nearly 7,000 (V2500) engines have been delivered to nearly 190 customers in 80 countries.
March 2016: News Item A-1: "(CALC) Receives Credit Support from (EXIM) Bank of China" by China Aviation Daily, March 09, 2016.
China Aircraft Leasing Group Holdings Limited ("CALC" or the "Group"), the largest independent aircraft operating lessor in China, received credit support at amount of US$41 million from the Transport Financing Department of the Export-Import Bank of China ("(EXIM) Bank of China") on March 7, supporting (CALC) to lease an A320 aircraft to Air India (AIN)/(IND). The aircraft was successfully delivered and in operation.
The key mandate of the Export-Import Bank of China is to implement government policies, assist Chinese companies in their offshore project contracting and outbound investment and play an important role in international economic cooperation. This project supports (CALC)'s globalization strategy and excelling in the highly competitive and rapidly changing international aviation leasing market. The cooperation between (CALC) and Air India (AIN)/(IND), which is a flag carrier of India, fulfils our global expansion plan and also echoes the unique value of the (EXIM) Bank of China in promoting bilateral relationship and international economic cooperation. (CALC) has ordered 20 C919 aircraft from Commercial Aircraft Corporation of China ("COMAC") to support the nation's "The Belt and Road Initiative" and pave foundation for global expansion of Chinese-made aircraft.
(CALC) has entered into a framework agreement with (EXIM) Bank of China of 10 billion yuan in 2014, including financing, consultancy services and other financial services. The agreement has secured additional capital source for the Group's business development.
May 2016: China Aircraft Leasing Group Holdings Limited ("CALC" or the "Company") (CHD), the largest independent aircraft operating lessor in China, is pleased to announce the opening of its new office in Toulouse. Located at Cap Constellation in Blagnac, the new office offers easy access to transport networks, the local airport, as well as to Airbus (EDS) facilities for (CHD)'s aircraft deliveries and inspections.
"I am delighted that we have been able to set up a new office here in Cap Constellation to better serve our airline customers and to further support (CALC)'s globalization strategy," said Mr Jens Dunker, CALC's Senior VP Aircraft Trading & Global Marketing at the inauguration. "As home to Airbus (EDS), ATR and many other major European aerospace companies, Toulouse is a key driver of global aviation development. Not only does this move provide us with a more convenient location, it also allows our global workforce to connect closer with our aviation partners in the aerospace cluster around the fourth largest city in France."
In order to support its international business development, (CHD) is expanding its teams and offices around the globe. Last year, (CHD) set up its office in Dublin, global hub for aviation leasing and finance, thus adding to the team experienced professionals from the aviation industry in the areas of banking and finance, law, sales and marketing, and technical support. "I am confident that our new Toulouse office will take a strong lead in enhancing our network with aviation partners, while working closely with our Dublin office, to support further expansion of (CHD)'s global businesses," Dunker added.
To date, (CHD) has completed 67 aircraft deliveries to its airline customers and is on schedule to expand to 172 aircraft by 2022. The Group is stepping its effort in globalizing its lessee profile. It completed the delivery of 5 aircraft to its 1st non-Chinese customer Air India (AIN)/(IND)in 2015, and has entered into lease agreements with Pegasus (PGS), its 1st European client, for the lease of 2 A320 aircraft, and with Vietnam's Jetstar Pacific Airlines (PAH) for the lease of 4 aircraft to be delivered this year.
August 2016: China Aircraft Leasing Group (CALC) (CHD) appointed Russell Hubbard as Senior VP Sales & Marketing, effective September 5.
Aircraft Recycling International member company, China Aircraft Leasing Group Holdings (CHD) has appointed Alistair Dibisceglia as Senior VP Technical, effective immediately.
December 2016: News Item A-1: China Aircraft Leasing Group (CHD) delivered the 4th and final Airbus A320 to Jetstar Pacific Airlines (PAH).
News Item A-2: China Aircraft Leasing Group Holdings Limited ("CALC") (CHD), the largest independent operating aircraft lessor in China, is pleased to announce that it has signed a lease agreement with Hawaiian Airlines (HWI) for a long term lease of an Airbus A321neo aircraft. The A321neo is expected to be delivered in 2018.
(HWI) is (CHD)'s 1st customer in the Americas, marking another milestone for the Group's global expansion. Since (CHD) began to tap into overseas markets in 2014, it has acquired airline clients in Asia Pacific, Europe and now the Americas.
Ms Winnie Liu, Deputy (CEO) and Chief Commercial Officer of (CHD) commented, "We are very excited to establish a business partnership with (HWI), our first USA client.
The A321neo for (HWI) will be the 1st of 74 new technology A320neo Airbus family aircraft which (CHD) has on order until 2022.
Hawaiian Airlines (HWI) is Hawaii's largest and longest-serving airline with 88 years of operation, as well as the largest provider of passenger air service from its primary visitor markets on the USA Mainland. (HWI) offers a non-stop service to Hawaii from 11 USA gateway cities, along with a service from Japan, South Korea, China, Australia, New Zealand, American Samoa and Tahiti. (HWI) also provides approximately 160 jet flights daily between the Hawaiian Islands, with a total of >200 daily flights system-wide.
January 2017: News Item A: China Aircraft Leasing Group (CALC) (CHD) delivered 18 aircraft in 2016. Additionally, the lessor completed rental realization transactions for 14 aircraft over the year.
(CHD) expects to deliver at least 17 new aircraft in 2017.
(CALC) (CHD)’s 2016 customers included Air Macau (MCU), China Eastern Airlines (CEA), Vietnamese low-cost carrier (LCC) Jetstar Pacific (PAH), Chinese (LCC) Lucky Air (LKY), Turkish (LCC) Pegasus Airlines (PGS), Chinese carrier Sichuan Airlines (SIC) and Chinese (LCC) West Air (CHO). All received A320ceo aircraft. On December 29, (CALC) signed a long-term lease agreement with Hawaiian Airlines (HWI) for an A321neo, scheduled for delivery in 2018.
(CALC) (CHD) has 92 Airbus A320 family aircraft on order backlog, all scheduled for delivery by 2022. Out of combined orders for 144 A320 family aircraft (including 36 originally placed in October 2012, 100 placed in December 2014, and +4 additional aircraft between December 2015 and January 2016), 52 have been delivered as of December 31, 2016, including 1 A319ceo, 48 A320ceos, and 3 A321ceos. Aircraft still to be delivered include 15 A320ceos, 73 A320neos, 3 A321ceos and 1 A321neo.
As of December 31, (CALC) (CHD)’s portfolio comprised 81 aircraft, which also included 5 Boeing 737NGs and 4 A330 family aircraft. (CHD) expects its fleet to expand to 173 aircraft by 2022.
“[In 2016 we] extended our presence in new markets including Japan and the USA, which will fuel future demand for our aircraft service,” (CALC) Deputy (CEO) & (CCO) Winnie Liu said. “Going forward, we will continue to uphold our vision to go global.”
Additionally, at the Farnborough Airshow in July 2016, (CALC) entered into a non-binding cooperative framework agreement with Hong Kong-based investment group Friedmann Pacific Asset Management to acquire 30 to 60 ARJ21-700 series aircraft from the Commercial Aircraft Corporation of China (COMAC) (CCC), an order valued at $2.3 billion if all options are exercised and reportedly the largest single commercial order for ARJ21-700 aircraft in (COMAC) (CCC)’s history.
News Item A-2: China Aircraft Leasing Group (CHD) appointed Matt Corley as Senior VP Marketing for North and South America from January 1. He joins (CALC) from Metric AirFinance, where he was managing partner and oversaw all aspects of aircraft sales, Marketing, management and consulting for the boutique firm. (CALC) also appointed Christopher Dennis-Meyer as Senior VP Marketing for Europe, Middle East & Africa, from January 4.
March 2017: News Item A-1: Hong Kong-based China Aircraft Leasing Group (CALC) (CHD) posted a 2016 net profit of +638.4 million Hong Kong dollars/+$82.3 million, up +67.9% from (CHD)’s HK$380.2 million net profit in 2015.
(CALC)’s revenues for the year totaled HK$2.4billion, up +58% over HK$1.5 billion in revenue for 2015. In 2016, (CALC) signed lease agreements with 5 airlines, increasing its client base to 16. (CALC) made its 1st forays into the Japanese and North American markets during the year with (ANA) Holdings and Hawaiian Airlines (HWI), respectively.
(CHD) received 17 Airbus A320 family-aircraft in 2016, and delivered 18 aircraft over the year. Those included 2 Airbus A320s to Turkey’s Pegasus Airlines (PGS), (CALC)’s 1st European client, and 2 A320ceos to Australia’s Jetstar Pacific Airlines (PAH), (CALC)’s 1st SE Asia client. (CALC)’s other clients during the year included Air Macau (MCU); China Eastern Airlines (CEA); Sichuan Airlines (SIC); and Chinese low-cost carriers (LCCs) Lucky Air (LKY) and West Air (CHO).
(CALC) ended the year with a fleet of 81 aircraft (up +28.6% from 63 in 2015) with a net book value of HK$30.9 billion in total assets, an average age of <4 years and an average lease term remaining of 9 years. The company maintained a 100% lease occupancy rate during the year. (CALC) plans to deliver at least 19 aircraft in 2017. The company intends to grow its fleet to at least 173 aircraft by 2022, based on current order commitments. (CALC) has 92 Airbus aircraft in its order book, including 15 A320ceos; 73 A320neos; 3 A321ceos; and 1 A321neo.
(CALC) made strides with its downstream (aviation value) chain business in 2016. Its Hong Kong-based subsidiary Aircraft Recycling International (ARI) signed a sales and leaseback arrangement with Sichuan Airlines (SIC) for 4 12-year-old aircraft,(ARI)’s 1st large-scale leasing transaction. (ARI) also won bids for 6 Boeing 737-700 airplanes from China’s Xiamen Airlines (XIA) during the year, eventually closing the transaction in March 2017. (ARI) is building Asia’s 1st aircraft-recycling center in Harbin, China, with the 1st phase of the project scheduled to open this year.
According to (CALC) (CEO) Mike Poon, (ARI) recently completed the acquisition of a 100% equity interest in Memphis, Tennessee-based Universal Asset Management Inc. (UAM) is a provider of commercial aviation asset management, aircraft recycling services and component sales.
“Looking ahead, we see the demand for full value-chain aircraft solutions increasing, as airline fleets continue to expand, age and retire,” he said. “With the aircraft disassembly center to commence operations soon, we are well placed to deliver profitable growth and create excellent shareholder value in the future.”
New Item A-2: Hong Kong-based China Aircraft Leasing Group (CHD) appointed Yu Tai Tei as Chief Risk Officer.
June 2017: News Item A-1: Hong Kong-based lessor, the China Aircraft Leasing Group (CALC) (CHD) has signed a purchase agreement for 50 Boeing 737 MAXs, valued at $5.8 billion at list prices. Announcing the deal June 15, (CHD) said the airplanes are scheduled for delivery in stages up to 2023.
“This large order of 1 of the newest and most popular airplanes will support the acceleration of (CHD)’s business expansion,” (CHD) (CEO) Mike Poon said. “Our strong order book is a valuable asset that is supporting our global expansion strategy, and we will continue to strengthen our future delivery pipeline in collaboration with airplane manufacturers, among other aviation partners.”
(CALC) (CHD) is using both Chinese and international bank funding, as well as 3 bond issues over the last 18 months totaling $1.1 billion, to fund its expansion.
The group owns 87 aircraft. With the 737 MAXs, (CALC) (CHD)’s order book comprises 139 aircraft (89 Airbus (EDS) and 50 Boeing (TBC)). (CHD) said this puts it on track to receive a total of no fewer than 226 aircraft by 2023.
A Boeing (TBC) spokesman confirmed the (CHD) purchase agreement is a firm order and said further details will be released during the week commencing June 19.
(TBC) has secured 3,699 orders for the 737 MAX, which has +19% more range on the previous generation, taking its capability to >3,500 nm.
News Item A-2: "(CALC) Acquires 2 Airplanes from (BOC) Aviation" by
"China Aviation Daily" June 15, 2017.
(CALC) (CHD), a full value-chain airplane solutions provider for global airlines, is pleased to announce that it has acquired 2 used Boeing (TBC) 737-900ER airplanes with lease attached from (BOC) Aviation Limited (SIL). The 2 airplanes are estimated to deliver to the Group in the 2nd quarter of 2017.
Portfolio trading is an extension of (CHD)'s current businesses, through which the Group acquires aircraft together with lease to certain airline. It also represents another airplane source in addition to new order books with manufacturers, secondary markets, and sales and leasebacks.
Mike Poon (CEO) of (CHD), said,"We believe that portfolio trading will not only accelerate our expansion and diversification of fleet portfolio, but will also grow our customer base as part of our globalization strategy. Portfolio trading will enhance the Group's sourcing flexibility, which is an important tool for the Group to optimize its asset value through active fleet management going forward."
(CALC) (CHD) currently owns a fleet of 87 aircraft and expects to deliver a total of <226 airplanes by 2023, based on firmed orders.
July 2017: Aircraft procurement company China Aviation Supplies Holding Company (CAS) has signed a general terms agreement (GTA) covering 100 Airbus A320-family aircraft and 40 A350s.
Airbus (EDS) said the (GTA), which was signed during a Berlin visit by Chinese President Xi Jinping, reflects strong demand from Chinese domestic, regional, low-cost and long-haul airlines.
Airbus (CEO) Tom Enders called China “one of the world’s most important markets for aviation” as it rapidly grows and develops its civil aviation market.
Domestic China is set to become the world’s largest market, according to Airbus’ latest Global Market Forecast 2017 - 2036. As at the end of May 2017, Chinese airlines operated 1,440 Airbus aircraft, including nearly 1,230 from the A320 family.
(CAS) was established as China Aviation Supplies Import & Export Group Corporation in October 2002 and re-branded as (CAS) in December 2007.
August 2017: News Item A-1: China Aircraft Leasing Group (CALC) (CHD) reported strong revenue growth in the 2017 1st half as (CHD) continues to expand and diversify globally.
In the (1H), (CALC) posted a net profit of +HK$248.7 million/+US$32 million, up +3.6% from (1H) 2016. Revenue for the half-year was up +22.5% to HK$1.26 billion.
(CALC) Chairman Chen Shuang said the (1H) performance "demonstrated its strong growth momentum. With its successful execution of its globalization strategy and fleet expansion plan, together with the continued expansion and diversification of its clientele, (CALC) is working toward being a full value-chain aircraft solutions provider for global airlines. We are well positioned to capture significant opportunities globally."
As of June 30, (CALC) had 90 aircraft and delivered nine aircraft to new customers.
In June, the Hong Kong-based lessor placed its 1st purchase order with Boeing for 50 737 MAX aircraft, scheduled for delivery in stages up to 2023. In addition, (CHD) has 138 narrow bodies on order.
(CEO) Mike Poon said the group "achieved a significant step forward by adding the Boeing 737 MAX series airplane into our fleet for the near-term future. Our track record of effective marketing and efficient placements showcases our capability to provide full life-cycle aircraft solutions as a means to enlarge our international client base globally in the dynamic market, generating added-value for our customers and shareholders."
Looking forward, the group expects to deliver 20 airplanes in the (2H) and expand its fleet to around 110 airplanes by the end of the year.
News Item A-2: China Aircraft Leasing Group (CALC) (CHD) delivered a new Airbus A320 aircraft to Vanilla Air (VNL), a subsidiary low cost carrier (LCC) owned by (ANA) Holdings in Japan. This delivery follows the lease agreement signed between (CHD) and (ANA) in July 2016, and marks (CHD)’s foray into Japan’s aircraft leasing market.
January 2018: China Aircraft Leasing Group (CALC) (CHD) has signed a purchase agreement for 15 A320neos, valued at $1.63 billion at list prices. The aircraft are scheduled for delivery from (2022 to 2023).
The transaction follows an order for 50 A320neos in late December 2017.
(CALC) (CHD)'s total order book with Airbus (EDS) will increase to 217 aircraft plus the 15 A320neos.
(CALC) currently operates a total fleet of 107 aircraft; its backlog after the new order stands at 193 aircraft, comprising 143 Airbus and 50 Boeing airplanes.
Separately, (CHD) also signed a purchase and lease back agreement with (PDP) financing with Latin American (LCC) group Viva Air (QUD), based in Panama, for 5 A320-200ceo family aircraft, scheduled for delivery between 2018 and 2019. “In recent years, the aviation market in Latin America has flourished due to the increase in travel and tourism,” (CALC) (CEO) Mike Poon said. “Further expansion into this market is part of the wider push of our globalization initiative.
March 2018: "(CALC) Signs RMB10 Billion Strategic Cooperation Agreement with China Development Bank" by China Aviation Daily, March 15, 2018.
(CALC) (CHD), a full value-chain aircraft solutions provider for global airlines, is pleased to announce that China Asset Leasing Company Limited ("China Asset Leasing"), a wholly-owned subsidiary of the Group, has signed a strategic cooperation agreement with the Tianjin Branch of China Development Bank (CDB), with an expected amount up to RMB10 billion.
The strategic cooperation between (CALC) and the China Development Bank is mainly intended for key projects related to aircraft leasing which align with the "Belt and Road" initiatives, covering aircraft financing, working capital loans (as pre-delivery payments), asset-backed securitization projects, as well as financing for (CALC)'s aircraft recycling arm (ARI). (CALC) will coordinate business development and risk management activities, and will recommend key projects that particularly need financial support to Tianjin Branch of the (CDB). The latter will leverage its strengths as a strong development finance agency to provide comprehensive financial services through advance planning.
The (CDB) is the world's largest development finance institution, the largest Chinese bank for foreign investment and financing cooperation, medium- and long-term lending and bond issuances. It is committed to serving for the major medium- and long-term development strategies for national infrastructure, primarily and pillar industries and overall national economy. With its unique business model, (CALC) provides aircraft full life-cycle solutions, with its services covering new aircraft, used aircraft and aircraft at end of life, meeting the fleet management needs of airlines around the world. Both parties will leverage their own advantages and cooperate on the development of the aviation finance industry, as part of the wider push of the construction of the "Aviation Silk Road".
Ms Winnie Liu, Chief Commercial Officer (CCO) of (CALC) commented, "We are delighted to enter into a strategic cooperation agreement with the Tianjin Branch of the (CDB), which will further strengthen our partnership with development finance institutions during the '13th 5-Year Plan' period. The strategic cooperation represents a strong endorsement of (CALC)'s full range of capabilities in the aviation industry. The (CDB) will give preferential consideration and greater support to our key cooperation projects in terms of policy initiatives, products, funds and other resources. Undoubtedly, such treatment will not only promote (CALC)'s expansion into the aviation markets along the 'Belt and Road' but also serve as a key support for the national aviation industry's overseas endeavors. Our strategic cooperation with the (CDB) will fuel our strong momentum as (CALC) progresses towards becoming a full value-chain aircraft solutions provider for global airlines."
Ms Dan Feng, Chief of the Tianjin Branch of the (CDB) pointed out: "China Asset Leasing (CALC) is a distinct company in the Experimental Area for Leasing Innovation of the China (Tianjin) Pilot Free Trade Zone. It is another innovative initiative for us, a financial institution, to establish a comprehensive and in-depth new strategic partnership with a strong enterprise like China Asset Leasing as we implement the spirit of the 19th (CPC) National Congress and the 'One Belt One Road' initiative. We will grasp the historical opportunities arising from Tianjin's development to support enterprises to 'go out,' helping (CALC) develop into an enterprise with relatively strong international competitiveness."