Source: Airfinance Journal China Aircraft Leasing Company (CALC) delivers one A320 to Chengdu Airlines on long-term lease.

Chengdu Airlines, the Chinese domestic carrier, has taken delivery of a single Airbus A320 from China Aircraft Leasing Company (CALC). The aircraft, which CALC financed with debt from a Chinese bank, delivered December 23 2010.

CALC purchased the 2006-vintage A320 from a European airline before placing the aircraft on long-term lease with Chengdu Airlines.

The Chinese carrier has agreed a pipeline of four A320 deliveries with the lessor, three of which have delivered to date.

CALC, which has a portfolio of eight aircraft on lease to China Southern and Chengdu Airlines, is hoping to more than double its portfolio to 20-30 aircraft by the end of 2011.
 

“We are aggressively expanding now, and we are in talks with airlines and leasing companies that want to dispose of their assets,” says Dewey Yee, managing director, CALC.
 

The lessor, which is owned by private equity, is also planning to sell a share of equity to strategic mainland institutions in China, which will free up cash for aircraft acquisitions.
 

The small but hungry lessor aims to build a foundation in China, and then start expanding regionally in the next 12-18 months.

“Although we are China-centric we are offshore unlike other Chinese lessors which are onshore leasing companies. It makes things a lot easier for us to grow the business and get access to debt and equity,” says Dewey.

Chengdu Airlines, known as United Eagle Airlines until January 2010, was re-organised in October 2009 when government-owned corporations Commercial Aircraft Corporation of China (Comac), Sichuan Airlines Group, and Chengdu Communications Investment Group became its three shareholders.

The Chinese carrier, which operates a fleet of 10 A320-family aircraft, has also placed an order for 30 Comac-manufactured ARJ21 regional jets.