Airline News
CDB Leasing offers $4 billion in credit facilities
October 2nd 2015
Aviation ties between China and the U.S. keep growing. China Development Bank (CDB) Leasing Co., which owns 188 aircraft and ranks in the world's top ten leasing companies by assets, last Friday signed a Memorandum of Understanding with Boeing Capital Corp. for financing and leasing services valued at $4 billion for carriers to take delivery of new Boeing aircraft. Read More » In return, Boeing Co. and Boeing Capital Corp. will offer CDB Leasing access to industry information sharing platforms, promote CDB to potential lessees and offer aircraft disposal solutions.
Separately, CDB announced on Tuesday it would lease five unspecified aircraft to Shenzhen Airlines subsidiary, Kunming Airlines, which will be added to the carrier’s fleet of twelve B737s used on 38 domestic routes.
Bohai Leasing, the HNA Group unit poised to take over Dublin headquartered Avolon Holdings in a deal valued at $7.6 billion, has revealed its ambition to change the international aircraft leasing landscape by becoming the world's third-largest player. "In the future, Chinese lessors will account for a larger share of the global leasing market. How we differ from other Chinese lessors is specialisation and secondly internationalisation," Bohai Leasing's chief operating officer, Ren Weidong, told the South China Morning Post.
Ren said Bohai Leasing's aircraft under management, including current and forthcoming fleets at its Hong Kong and Mainland subsidiaries, Hong Kong Aviation Capital and Changjiang Leasing, would be 525 planes worth 129.5 billion yuan when the deal was completed early next year. "This means we are already larger than BBAM [Babcock & Brown Aircraft Management], making us the world's Number Three in aircraft leasing," he said.
Fourteen entities make up the HNA aviation and shipping conglomerate's leasing arm, including seven focused on aircraft leasing. Bohai is expected to merge the two overseas aircraft leasing units by downsizing Hong Kong Aviation Capital and moving its senior executives to join Avolon in Ireland, the SCMP reported.
China Aircraft Leasing Group Holdings (CALC), the largest independent operating aircraft lessor in China, has said it expected to deliver 19 aircraft in 2015 as it strives to expand its fleet from 52 to 168 aircraft by 2022.
