CALC launches aircraft investment vehicle

June 29th 2018

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Hong Kong-based China Aircraft Group Holdings Ltd (CALC) this week announced the formation of CAG, a vehicle to invest in aircraft portfolios on lease to global airlines. Read More » CALC had first announced its plan to form CAG last December.

The aircraft lessor said CAG marked an important strategic move for CALC as it undergoes a transition towards adopting an asset-light business model for supporting its global expansion, whilst further enhancing its aircraft asset management capabilities. CAG is expected to hold approximately US$1.15-1.4 billion in aircraft assets by 2020.

To set up CAG, CALC teamed up with mezzanine financiers from Chinese “large-scale state-owned enterprises engaged in outbound investment”, insurance conglomerates and aviation supply chain firms.

“The successful launch of CAG represents an important step forward in CALC's transition into an asset-light business model, which increases our aircraft asset under management, and hence further strengthens the group’s position as an aircraft full value-chain solutions provider for the global aviation industry. CAG is also a replicable financing channel that supports vast capacity in the future through efficient turnover on our capital. With the participation by our partners from different backgrounds, we strive to facilitate the development of the national blockbuster initiative Aviation Silk Road,” said CALC CEO, Mike Poon.