Cheung Kong has signed four separate deals, announced this week, to purchase up to 60 aircraft from several lessors and set up a new joint venture leasing business in Hong Kong with MC Aviation Partners (MCAP).
Cheung Kong has signed a Conditional Sale Agreement with GECAS to purchase a total of twenty-one aircraft for $714.8million. The portfolio comprises 11 A320-20s, five 737-800s and two 737-900ERs currently leased to a total of nine different commercial airlines with an average remaining lease term of 6.5 years. The average age of the CSA Aircraft is 3.1 years. The company has also bought the beneficial interest aircraft from GECAS subsidiaries for a further $101.2million.
The company has also agreed to purchase 10 aircraft from BOC Aviation – one 777-300ERs, one A330-300, three A320-200s, three 737-800s, one 737-700 and one 737-900ER – for an approximate total of $492 million. The aircraft are currently leased to a total of eight different commercial airlines with an average remaining lease term of 6.3 years. The average age of the aircraft is 4.1 years.
Under a separate transaction with JSA, Cheung Kong will acquire seven A320-200s, three 737-800s and two 737-900ERs, one A319-100, and one A321-200. Such aircraft are currently leased to a total of 10 different commercial airlines with an average remaining lease term of 8.1 years. The average age of the aircraft is 2.6 years.
The final deal sets out the agreement for the joint venture company with MCAP – J V Aviation, which in a 60:40 basis, will hold a portfolio of up to fifteen aircraft – the total aircraft acquired from JSA. More aircraft are expected to be acquired under this new venture.