CALC orders 50 737Max aircraft; Investec offloads 18 aircraft

Eleanor Steed
By Eleanor Steed June 15, 2017 14:19

CALC orders 50 737Max aircraft; Investec offloads 18 aircraft

China Aircraft Leasing Group (CALC) has ordered 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 aircraft will support the acceleration of CALC’s business expansion,” said Mike POON, Chief Executive Officer of CALC.

CALC 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 226 aircraft by 2023.

Meanwhile, Investec has agreed to sell 18 aircraft from its managed leasing funds to funds managed by Oaktree Capital Management, working in conjunction with World Star Aviation. The transaction includes 15 737-800s and A320-200s, two 777-300ERs aircraft and an A330-300. The aircraft are on lease to 12 global airlines, including flag carriers Air China, Air France, and LCCs, such as Wizz Air and IndiGo.

“As the aviation industry has experienced considerable growth, we remain strongly committed to the continued development of our aircraft leasing activity, a core part of our aviation offering.  The risk-return profile and diversification offered by this asset class has led to interest and support from institutional investors,” commented Alok Wadhawan, Head of Investec Aviation Finance.  “This demand has driven our decision to work with our adviser, Goldman Sachs International, to bring an attractive 18 aircraft portfolio to market. While this is an important sale for Investec, we continue to look for aircraft acquisition opportunities alongside our airline and lessor clients.”

Investec owns and manages a portfolio of more than 60 aircraft across its aviation business. Goldman Sachs is acting as financial advisor and Clifford Chance as legal advisor to the seller.

Eleanor Steed
By Eleanor Steed June 15, 2017 14:19