China Aircraft Leasing Group Holdings (CALC) has signed an agreement with Airbus to purchase 50 A320neo family aircraft for a total list price of $5.42bn.
The deal has brought CALC’s total order with single-aisle Airbus aircraft to 202.
Delivery of the new Airbus A320neo aircraft is expected to be carried out in stages by 2023.
Once delivered, the aircraft is set to significantly expand CALC’s fleet portfolio and will help the company to launch an additional financing platform.
CALC CEO Mike POON said: “The new platform will serve as an additional financing channel to support CALC’s global expansion.
“It will also enable the group to progressively adopt an asset-light business model by efficiently turning over its capital, so as to scale up the aircraft asset under the group’s management.
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By GlobalData“With lessened balance sheet pressure that allows greater flexibility, CALC will be able to focus on its core competitiveness in aircraft servicing and management, ultimately generating better returns for its shareholders.”
CALC is also planning to buy 15 additional Airbus A320neo aircraft this month, subject to the fulfilment of certain conditions.
Airbus Commercial Aircraft Customers chief operating officer John Leahy said: “With unbeatable fuel efficiency and the lowest operating costs, it is the best match for CALC’s customers.”
In addition, Airbus has secured a firm order from global aircraft lessor AerCap holdings for 50 new A320neo family planes.
