News
China continues its “global aviation power” push
October 14th 2016
Hong Kong-based investment and asset management company, China Everbright Limited (CEL), part of China Aircraft Leasing Company (CALC), this week finalized the purchase of Albania’s Tirana International Airport (TIA). Read More »
Airport CEO, Rolf Castro-Velasquez, hoped the new owners would usher in “an era of transformation” for the underperforming Albanian capital airport that’s been in the hands of German, U.S. and Albanian shareholders. The three shareholders have spent $78 million improving the airport since 2005.
TIA registered total traffic just short of two million passengers in 2015.
CEL and CALC CEO, Chen Shuang, said the takeover was “a proactive corporate approach to identify good infrastructure investment opportunities”. CEL has 33 private equity funds and more than $8.7 billion in assets. “With CEL’s support and resources, TIA can continue to upgrade its facilities and hardware. Leveraging CEL’s extensive networks in China, we believe trading and tourism between the two countries will be further promoted. Therefore, this acquisition is of great significance and value,” Chen said.
TIA’s new ownership will probably result in a direct Tirana-Beijing air link. Chinese carriers have started multiple services from the Mainland to Eastern Europe, including Zagreb, Minsk, Warsaw and Budapest. Air Serbia, an Etihad Airways associate, intends to start Belgrade-Beijing in 2017.
The Chinese are continuing their global shopping spree at full speed, despite a slowing economy. Bohai Capital Holding Co. Ltd subsidiary, Avolon, has bought CIT Group’s aircraft lessor subsidiary, subject to regulatory approval, and the Aero-Engine Group of China, a state-controlled aircraft engine maker, has been established to compete with Rolls-Royce, Pratt & Whitney and CFM International.
Aero-Engine Group of China will have a registered start-up capital of 50 billion yuan ($7.6 billion).The Chinese government, Beijing municipal government, the Aviation Industry Corp of China (AVIC) and Commercial Aircraft Corp of China (COMAC) are investors. The heavyweight group will combine a number of smaller businesses and 96,000 employees to focus on designing, manufacturing and testing commercial and military engines.
AVIC executive vice-president, Geng Ruguang, earlier this year described the aviation industry as the "crown jewel" of manufacturing, saying that China has the potential "to become a global aviation power". Aero-Engine is expected to showcase some of its power plants at the China International Aviation & Aerospace Exhibition or Air Show China, from November 1-6 in Zhuhai.
