China Aircraft Leasing buys another 15 Airbus A320 jets, taking order size to US$7.5 billion
The company is well-placed to take advantage of the boom in China’s air travel demand
China Aircraft Leasing Group (CALC) has agreed to buy an additional 15 Airbus A320neo jets on top of the 55 ordered in December, as it increases its fleet to meet the growing demand for air travel in China, which is set to overtake the US as the world’s largest market.
The list price for the 15 single-aisle aircraft is US$1.63 billion, boosting the overall order size to US$7.54 billion, which will be financed through “internal resources and the proceeds from loans or other borrowings”, the company said on Friday.
“A strong order book is one of the most important assets for an aircraft lessor to provide flexible solutions to airlines,” said Mike Poon, chief executive officer of CALC.
“With an expanded fleet and extended global presence, CALC is entering into a new phase of corporate development to increase the aircraft under management.
“We are targeting to deliver at least 40 aircraft per year hence need more aircraft to support the plan.”
The company, on two different occasions in late December, agreed to buy 50 A320neo and five A320-200 CEO (current engine option) aircraft for US$5.42 billion and US$495 million, respectively.