CALC to Purchase 50 New Boeing 737 MAX Aircraft
HONG KONG, June 15, 2017 -- CALC (the "Group", SEHK stock code: 01848), a full value-chain aircraft solutions provider for global airlines, has entered into an aircraft purchase agreement with Boeing for 50 new 737 MAX series aircraft, with a list price of US$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 aircrafts 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 US$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.
CALC (SEHK stock code: 01848) is the first full value-chain aircraft solutions provider in Asia. Together with its member company Aircraft Recycling International Limited ("ARI"), Asia's first provider of total aircraft solutions for aging aircraft, CALC provides customers with aircraft full life-cycle solutions, covering aircraft leasing, fleet planning consultation, structured financing, sale and leaseback, fleet replacement package deals, third party aircraft resale as well as aircraft recycling services. With a professional team that has extensive international aviation market experience and its globalised sources of financing, CALC is currently the largest independent aircraft operating lessor in China in terms of the total number of aircraft under ownership plus new aircraft in its order book, and has successfully expanded to the Asia, European and American markets.
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, MSCI China Small Cap index, and an eligible stock under southbound trading of Shenzhen-Hong Kong Stock Connect. CALC was named "Aircraft Lessor of the Year" 2015 and 2016 respectively by Global Transport Finance for its expertise in delivering outstanding services and providing effective financing solutions to a diverse range of customers.
For investor and media inquiries, please contact:
Citigate Dewe Rogerson
Joe Pan / Jingo Chan
Tel: +852 3103 0110 / +852 3103 0106