China Aircraft Leasing Acquires 50 New 737 Max Aircraft
JUN 16, 2017 - 7:09 am
China Aircraft Leasing (CALC) entered into an aircraft purchase agreement with Boeing for 50 new 737 MAX series aircraft, with a list price of $5.8 billion. The aircraft are scheduled for delivery in stages up to 2023.
“We are delighted to announce this new engagement with Boeing. This large order of one of the newest and most popular aircraft will support the acceleration of CALC’s business expansion,” said Mike POON, chief executive officer of CALC.
“Over the past decade, CALC has grown from being a market leader in China’s aircraft leasing industry to becoming one of the most important players in the global aviation market, and we are proud of the progress made to enhance and significantly sharpen our financing and placing capabilities. CALC now has a strong team in place that is looking to capture global opportunities, and we are actively expanding and diversifying our fleet portfolio to meet the varying needs of airlines customers in this dynamic market. Our strong order book is a valuable asset that is supporting our global expansion strategy, and we will continue to strengthen our future delivery pipeline in collaboration with aircraft manufacturers, among other aviation partners.”
CALC has explored a variety of financing channels to ensure flexibility for its global expansion. In addition to its long-standing relationship with Chinese and international banks, CALC has been an active player in the bond market, having issued three batches of senior unsecured bonds in the aggregate amount of $1.1 billion over the past 18 months. The group has also made disposal of finance lease receivables a recurrent business, enabling it to efficiently utilize equity and debt financing arrangement.
The group currently owns a fleet of 87 aircraft. With this new order, CALC’s outstanding order book now consists of 139 aircraft (89 Airbus and 50 Boeing), putting the company on track to deliver a total of no less than 226 aircraft by 2023.
The Boeing 737 MAX sets new standards in terms of fuel efficiency and performance, and has increased the series’ range by 19% to over 3,500 nautical miles. The 737 MAX is the fastest-selling aircraft in Boeing’s history with a total of 3,699 orders to date.
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