Chinese lessor plans to sell $3 billion overseas aircraft portfolio

According to people familiar with the matter, China Aircraft Leasing (CALC) is considering selling some of its assets outside of Greater China in a transaction that could yield about $3 billion.

The Hong Kong-listed company intends to sell about 40 aircraft and about 180 aircraft production slots, said the people, who asked not to be identified because the information is private. CALC, as the company is known, has approached potential buyers for the assets, the people said.

The considerations are at an early stage and CALC can decide against a deal, according to the population. A company representative did not immediately respond to requests for comment.

A potential divestiture could come as aircraft rental companies have captured an increasing share of the jet market since the pandemic began, as airlines seek to finance aircraft purchases without risking their own balance sheets.

While the fast-growing industry has already seen some moves of consolidation lately, rising interest rates could make it harder for smaller lessors to find cash to fund aircraft purchases.

Last year, CK Asset Holdings exited its aircraft leasing business with a $4.28 billion sale to an arm of the Carlyle Group. In May, SMBC Aviation Capital agreed to sell smaller competitor Goshawk Aviation Ltd Valuation of $6.7 billion.

Founded in 2006, CALC is one of China’s largest aircraft rental companies, serving customers in 17 countries, according to its website. The Hong Kong-based company’s business includes aircraft leasing and procurement, aircraft trading and portfolio sales, fleet maintenance and dismantling. Combined owned fleet and order book assets totaled $15.6 billion at the end of 2021.

CALC owned and managed 163 aircraft and had an order book for 241 new aircraft. Chinese lessor plans to sell $3 billion overseas aircraft portfolio

Fry Electronics Team

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