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China Aircraft Leasing Group reports profit increase, buys into Indonesian airline
March 6th 2020
China Aircraft Leasing Group (CALC) said profit for the 12 months to December 31, 2019 rose 10%, to HK$896 million (US$115.63 million), from HK$808.9 in the previous 12 months. Read More »
CALC CEO, Poon Ho Man, said in a regulatory filing to the Hong Kong Stock Exchange on March 4 that calendar 2019 was "another year of steady growth, despite global market uncertainties and headwinds in the aviation industry".
The lessor said it ended the year with 134 aircraft in its fleet, comprising 111 owned and 23 managed airframes. The company has 218 aircraft in its order book: 125 Airbus and 93 Boeing aircraft.
Poon said the global economy was projected to grow at a modest pace in calendar 2020 with signs of a slowdown in China, which has been further dented by the COVID-19 outbreak. "Despite these factors, the long-term demand for commercial aircraft will continue to remain robust," Poon said.
Also on Wednesday, CALC announced it would invest in Indonesian airline operating company, PT TransNusa Aviation Mandiri (TAM), with the intention of acquiring a 35.68% equity in the company for US$28 million.
“Investing in TAM will reinforce the CALC group’s existing strategic alliance with aircraft manufacturers and parts suppliers, which is an essential component for the Group’s aircraft full value chain,” Poon said.
“Establishment of airline business has put [in place] CALC’s full vision of becoming the one-stop solutions provider by tapping into the end user of the value chain.”
TAM’s airline, TransNusa, operates 30 domestic routes to 24 destinations and one international service, to Timor Leste.
