HONG KONG, May 15, 2015 /PRNewswire/ -- Focusing on Indian Prime Minister Modi's three-day visit to China, leaders of the two countries discussed at an unprecedented new level a concrete roadmap to enhance economic and trade cooperation between China and India, striving for closer regional collaboration centered around both nations.The leaders of the two countriesdiscussed relevant cooperation initiatives such as the "Belt and Road" and the Asian Infrastructure Investment Bank. Among them, the two sides will explore further strengthening aviation cooperation ties between India and China and enhancing communication on the“Act East”policy to identify common interests and achieve alignment.
As China-India relations are expected to begin a new chapter of "dragons and elephants dancing together,"China Aircraft Leasing Group Holdings Limited(shortened as: "CALC"), positioned as a provider of full aircraft life-cycle solutions, plans to replicate and actively promote the successful example of its first cooperation between a Chinese enterprise and an Indian state-owned enterprise—its collaboration with Air India, India's national flag carrier—to other Asian countries.
Leveraging its unique one-stop full aircraft life-cycle business model, CALC will actively and pragmatically support bilateral cooperation as well as the "Belt and Road" economic strategy and transportation industry plans, aligning with national development strategies. It will provide more innovative and value-added full life-cycle aircraft solutions tailored to domestic and international airlines, promoting the development of the aviation industry in China and the region, and continuing to support China as an engine of economic growth for the region and the world.
The Air India Leasing Project Demonstrates the Fruits of China-India Economic and Trade Cooperation
CALC has consistently aligned with national policy directions. As early as 2014, the group signed a leasing agreement for five aircraft with Air India. In early February 2015, during Indian External Affairs Minister Sushma Swaraj’s first visit to China under the new Indian government, CALC delivered the first brand-new A320 aircraft to Air India, demonstrating the fruits of bilateral economic and trade cooperation. Throughout the project's progress, CALC actively communicated with various levels of regulatory authorities to ensure alignment with national policy planning. The successful negotiation of the group's first overseas leasing project was made possible by government support for China’s aircraft leasing industry.
Stepping into the International Market Gaining Recognition from International Financial Institutions
In March 2015, CALC secured aircraft financing guarantee loans from a European Export Credit Agency (ECA) for the first time, completing the financing for a new A320 aircraft delivered to Air India. Successfully obtaining ECA-guaranteed loans marked international financial institutions’ recognition of CALC’s credit rating, providing a financing platform for the group’s overseas market development. It further demonstrated CALC’s capability to expand into the international aviation market and established a strong foundation for its collaboration with Air India.
Industry and Market Support Continuously Developing Full Aircraft Life-Cycle Solutions
Established in 2006, CALC was ranked by leading global aviation consultancy Ascend as China’s largest independent aircraft leasing company in 2014 in terms of total number of aircraft in service and on order. To further consolidate its capabilities as a provider of full aircraft life-cycle solutions, in late 2014, CALC signed a memorandum of understanding with the Harbin municipal government to establish China’s largest aircraft disassembly base. Within its relatively short business history, the group has gradually developed into a provider of full aircraft life-cycle solutions.
CALC has maintained friendly and close relationships with banks and aircraft manufacturers. In December 2014,thegroup placed another order with Airbus for a bulk purchase of 100 aircraft, accelerating its business growth. The planes are scheduled for delivery primarily between 2016 and 2022. According to committed orders, CALC’s fleet will grow to 168 aircraft by the end of 2022. CALC’s efforts in establishing an image as an innovative aircraft solution provider in Hong Kong, mainlandChina,and overseas markets, solidifying its position in the international aircraft leasing market, along with its sustainable and developing business, not only prepare the group for entering the international market but have also gained the trust and support of banks and the capital market.
CALC has received support from the China Development Bank, the Export-Import Bank of China, and the China Construction Bank in terms of loans and credit lines, collectively providing over RMB 19 billion in loans and credit facilities. To actively develop diversified financing channels, the group has started issuing convertible corporate bonds in Hong Kong. On March 26, 2015, the company signed a subscription agreement for the issuance of HK$892millionworth of three-year convertible bonds, fully demonstrating the group’s financing capability.
With Full Life-Cycle Aircraft Solutions Responding “the Belt and Road”strategic initiative
China Aircraft Leasing has gradually demonstrated to the international stage its capability in providing end-to-end aircraft solutions across the entire industry chain. The Group’s professional team possesses extensive international market experience and has the ability to deliver aircraft to international clients or arrange lease financing. The successful acquisition of ECA-guaranteed loan projects for multiple aircraft fully showcases the global expansion of China Aircraft Leasing. Looking ahead, guided by the pioneering spirit of being at the forefront, China Aircraft Leasing is committed to unlocking the vast opportunities of the “Aerial Belt and Road,” customizing more innovative and value-added, end-to-end aircraft solutions for both domestic and international airlines.
About China Aircraft Leasing
China Aircraft Leasing Group Holdings Limited(Stock Code: 01848.HK)is the largest operating lessor in the Chinese aircraft leasing market by the number of new aircraft imported annually. As a pioneer in China’s operating lease aircraft sector, China Aircraft Leasing, with its unique positioning as an end-to-end aircraft solutions provider, offers a wide range of value-added services to airlines and aircraft investors beyond conventional leasing structures such as operating leases, finance leases, and sale-and-leasebacks. These include fleet planning consultancy, structured financing, fleet renewal, third-party aircraft resale, and aircraft disassembly services — meeting client needs with full life-cycle aircraft solutions. Currently, the Group owns and manages a fleet of 48 commercial airliners.