NewChina's Bohai reveals international aircraft leasing ambition
HNA unit's purchase of Irish aircraft lessor Avolon will help Chinese company undertake more operating leasing to a global clientele
Bohai Leasing, the HNA unit that is taking over Irish aircraft lessor Avolon Holdings in a deal valued at US$7 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, firstly, specialisation, and secondly, internationalisation," Bohai Leasing's chief operating officer Ren Weidong told the South China Morning Post.
Bohai Leasing's purchase of New York-listed Avolon for US$2.6 billion is not only the largest aviation deal from China by enterprise value, but also marks the first time a Chinese lessor has succeeded in taking over a Western one after a Chinese consortium's failed attempt to buy the world's largest lessor, ILFC, back in 2012.
Ren said upon the deal's completion early next year, Bohai Leasing's total aircraft under management - including current and forthcoming fleet at its Hong Kong and mainland Chinese subsidiaries Hong Kong Aviation Capital and Changjiang Leasing - would reach 525 planes worth 129.5 billion yuan.
"This means we are already larger than BBAM, making us the world's No3 in aircraft leasing," he said, adding that Bohai Leasing was already the world's largest shipping container lessor after its acquisition of Cronos and Seaco.
A total of 14 units make up the HNA aviation and shipping conglomerate's leasing arm, including seven focused on aircraft leasing. Bohai Leasing is expected to merge the two overseas aircraft leasing units by downsizing Hong Kong Aviation Capital and moving its senior executives to join Avolon's in Ireland.