HONG KONG, July 12, 2016 /PRNewswire/ -- Commercial Aircraft Corporation of China, Limited ("COMAC"), Friedmann Pacific Asset Management Limited ("FPAM") and China Aircraft Leasing Limited ("CALC"), entered into a tripartite cooperative framework agreement in relation to acquisition of ARJ21 Aircraft (subject to further negotiation to enter into a formal binding agreement)at the Farnborough International Air Show in United Kingdom. CALC will acquire 60 ARJ21-700 series aircraft (including a confirmed order of 30 ARJ21-700 aircraft and an option to purchase 30 ARJ21 series aircraft) from COMAC. The list price of the 60 ARJ21-700 series aircraft is approximately US$2.3 billion. This is the largest scale single commercial order of ARJ21-700 aircraft for COMAC since it began its commercial operations. CALC will act as an aircraft lessor to provide value-added leasing solutions to an Indonesian-based airline, which FPAM intends to invest in, in building a pure- ARJ21 fleet.
The first batch of aircraft of this bulk purchase will be delivered in the next one to two years, and the remaining aircraft of the confirmed order will be delivered in succession in the next five years. As such, FPAM's Indonesian airline is expected to become the first foreign airline which operates a fleet consisting solely of ARJ21-700 aircraft, leading China's first home-grown passenger jet to enter into the Southeast Asian market. In addition, COMAC will establish an all-rounded services network in Indonesia, providing technical support, on-going maintenance and customer services for the ARJ21 Aircraft.
"Friedmann Pacific, CALC and COMAC are here today to sign a cooperative framework agreement with historical significance. It sets to create a positive and long-term impact on aviation development in Asia Pacific and globally, and on the implementation of the nations' Belt and Road Initiatives," Mr. He Dongfeng, General Manager of COMAC, commented while giving a speech during the signing ceremony, "Friedmann Pacific has been focusing on aviation investment over the years, and has built up a wealth of experience and solid strength in the areas of aircraft leasing, airport investment and operations, aircraft disassembly, and airline operations. CALC is a specialist of aircraft leasing possessing an elite team and global financing capabilities. The three parties share the same industry background, belief in win-win approach and long-term vision. I believe the cooperation will be crowned with success through our joint efforts."
Mr. Mike Poon, Chairman of FPAM noted, "All of us at Friedmann Pacific are aviation-passionate, and with our innovators' DNA, we seek to discover and develop opportunities that will shape the future of aviation in China and beyond. We are the first-mover in a number of segments in the aviation industry, and successfully built a globalised value chain of aircraft leasing, airport investment and operation, aircraft disassembly and airline operations. We are deeply honoured to participate in the historic mission of facilitating national aircraft to fly overseas. We would like to express our sincere gratitude towards COMAC, as they have total faith in our vision, at the same time recognising the experiences and unique advantages that we gained in the global aviation value chain. Combined with our efficient business model, it is believed that we can facilitate the success of national aircraft in the international market."
During the past years, FPAM has been evaluating how to enhance the global profile of China-made aircraft. Having considered different market landscapes and business specifications, FPAM eventually decided on acquiring an airline in Indonesia, building a fleet of ARJ21 aircraft and focusing on its operation. The aim is to gain international recognitions through user experience, and to realise efficiency through the established operation plans of the Indonesian airline.
Mr. Poon continued, "The ARJ21-700 aircraft is a medium-to-short haul aircraft with the best operation efficiency in its type. Therefore, FPAM has chosen Indonesia, an island country, as the first overseas market to operate a fleet solely with ARJ21 aircraft. In the last year, the operation team and I have spent a lot of time on preparation work in Indonesia, getting ready for eventual national aircraft exports."
The operations team of FPAM works very closely with all the counterparts in Indonesia and China, mobilises the most suitable resources available in the aviation sector on the ground, and conducts thoughtful deliberation of the marketing strategy of the ARJ21 Aircraft, with the key and ultimate objective to launch the commercial operations of ARJ21-700 aircraft in the international market.
Ms. Winnie Liu, Deputy CEO and Chief Commercial Officer of CALC, commented, "This time we came to tentative agreement with COMAC over a large order of 60 ARJ21-700 series aircraft, which fully reflects our confidence in turning China-made jetliners into a part of CALC's quality aviation assets. Diversifying our fleet portfolio, meanwhile, would allow us to provide leasing solutions to airlines with more flexibility, further raising our ability in capturing the huge potential in growing the regional aviation marketplace." Using the Southeast Asian market as an example, after the Association of Southeast Asian Nations opens up their airspace, a lot of the international routes are now within a 2-hour range. Thus, the ARJ21 series provides another reliable option for the operators.
"CALC is in full support of the development of the national aircraft. In 2012, we have already ordered 20 C919 China-made aircraft from COMAC, and this agreement will further consolidate our bilateral strategic partnership. CALC has been actively pursuing overseas market opportunities, which is consistent with our strategy of sustainable development, as well as in line with the nations' Belt and Road Initiative. Benefitting from the national policy of export financial support, combined with our existing diversified financing channels, we are able to acquire aviation assets with high potentials at relatively low costs."
CALC's current portfolio consists of 70 current generation Airbus and Boeing aircraft with 103 airbus orders to be delivered and its fleet is expected to expand to 173 aircraft by 2022. Its leasing business has been expanded over Asia and to the major European markets in which customers include top tier airlines and regional operators. It is adopting a clear strategic plan, including active fleet expansion, aircraft models enrichment, coupled with establishing partnership with newly established airlines, exploring overseas financing channels and opening up innovative finance alternatives, in order to support its globalization strategy and sustainable development.
About Commercial Aircraft Corporation of China, Ltd.
Commercial Aircraft Corporation of China, Ltd. (COMAC) is a state-owned limited liability company, which is formed with the approval of the State Council and jointly invested by State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, Shanghai Guo Sheng (Group) Co., Ltd., Aviation Industry Corporation of China (AVIC), Aluminum Corporation of China Limited (CHALCO), Baosteel Group Corporation, and Sinochem Corporation. COMAC was held on May 11th, 2008, and headquartered in Shanghai. Mr. Jin Zhuanglong serves as Chairman and Secretary of the Party Committee of COMAC, and Mr. He Dongfeng as General Manager.
COMAC functions as the main vehicle in implementing large passenger aircraft programs in China. It is also mandated with the overall planning of developing trunk liner and regional jet programs and realising the industrialisation of civil aircraft in China. COMAC is engaged in the research, manufacture and flight tests of civil aircraft and related products, as well as marketing, servicing, leasing and operations of civil aircraft. The company has nine member organisations: Design, Research and Development Center of COMAC (Shanghai Aircraft Design & Research Institute), Manufacturing and Final Assembly Center of COMAC(Shanghai Aircraft Manufacturing Co Ltd.), Customer Service Center of COMAC (Shanghai Aircraft Customer Service Co., Ltd. ), Beijing Research Center of COMAC (Beijing Aeronautical Science & Technology Research Institute), Civil Aircraft Flight Test Center of COMAC, Capability & Supporting Center of COMAC (Shanghai Aviation Industrial (Group) Co., Ltd.), News Center of COMAC (Shanghai Commercial Aircraft Magazine Co., Ltd.), COMAC Sichuan Branch, and COMAC America Corporation. COMAC also has its Beijing Office, U.S. Office and European Office in Beijing, Los Angeles and Paris respectively, while setting up a Financial Service Center in Shanghai. COMAC is a shareholder of Chengdu Airlines Co., Ltd. and SPDB Financial Leasing Co., Ltd.
COMAC is formed and operated according to the standards of modern enterprise system, and adopts an "airframer-suppliers" model, focusing on aircraft design, final assembly and manufacture of aircraft, marketing and customer service, acquisition of certification, and supplier management. COMAC adheres to the principle of "development with Chinese characteristics" and attaches great importance to technological progress and self-reliant advancement in the process of marketing, integration, industrialisation and globalisation. The company endeavours to manufacture large passenger aircraft that are safer, more cost-effective, comfortable and environment-friendly and is determined to allow Chinese-invented, large passenger aircraft soaring through the blue skies in the near future.
For more information, please visit http://www.comac.cc/
About Friedmann Pacific Asset Management Limited
Established by Mike Poon in 2000, Friedmann Pacific Asset Management Limited ("FPAM") is a Hong Kong-based investment firm specialising in airport and other aviation industry-related projects around the world. It aims at driving capital flow across borders and building connectivity between the regional, national and global economics through its investments in the global aviation value-chain. Over the years, FPAM's investment has been extended to major sectors of the aviation value chain, including aircraft leasing, airport investments and operations, aircraft disassembly and airlines operations.
FPAM is a first mover of overseas airport acquisition. In 2015, FPAM teamed up with Shandong Hi-Speed Group to acquire 49.99% stake of Toulouse-Blagnac Airport, the largest airport in Southwestern France. The transaction was the first airport privatisation project in France, which was also marked as the first ever overseas airport acquisition by a Chinese consortium. It has been voted "Deal of the Year 2015" at the audience poll at Global Airport Development Conference 2015, the world's leading airport development and financing event. In April 2016, FPAM teamed up with China Everbright Limited to acquire Tirana International Airport, becoming the franchised operator of the capital airport of Albania.
In 2016, FPAM decided to invest to an Indonesian airline, planning to service with a fleet made up of solely Commercial Aircraft Corporation of China, Ltd. (COMAC)-made aircraft. The team is currently under careful consideration regarding its operation strategy, aiming to provide a solid business and safety foundation for the fleet.
FPAM is the founding shareholder of China Aircraft Leasing Group Holdings Limited ("CALC"). The two parties are jointly developing China's first aircraft disassembly centre, with an objective to transform the centre into a leading aircraft disassembly base in the world, so as to support the long-term development of China aviation industry.
For more information, please visit www.fpam.com.hk
About China Aircraft Leasing Group Holdings Limited
China Aircraft Leasing Group Holdings Limited ("CALC"; Stock Code: 1848.HK) is the largest independent aircraft operating lessor in China, in terms of new aircraft import under lease each year. With its professional team possessing extensive international aviation market experience and its globalised sources of financing, the Group has developed into a full value-chain aircraft solution provider. In addition to aircraft operating lease, financial lease and sales and leaseback, CALC provides customers with aircraft full-life solutions, covering fleet planning consultation, structured financing, fleet replacement package deal, third party aircraft resale as well as aircraft disassemble. The Group is headquartered in Hong Kong, with offices in Beijing, Tianjin, Shanghai, Shenzhen and Harbin, China; Labuan, Malaysia; Toulouse, France and Dublin, Ireland.
Listed on the main board of the Stock Exchange of Hong Kong on 11 July 2014, CALC is the first aircraft lessor listed in Asia. CALC is currently a constituent stock of the Hang Seng Global Composite Index, the Hang Seng Composite Index and MSCI China Small Cap index. CALC was named "Aircraft Lessor of the Year" 2015 by Global Transport Finance, for its expertise in delivering outstanding services and providing effective financing solutions to a diverse range of customers.
To learn more about CALC, please visit www.calc.com.hk
Christy Wong
Phone Number: 852-3759 8453
Email: christywong@calc.com.hk
