Principal Investment

Aircraft Leasing

Aircraft Leasing

China Everbright Limited explores opportunities arising from the rapid growth of aviation and commercial aviation financing, investment and leasing activities via its subsidiary China Everbright Aerospace Holdings Limited (CEAL). In 2011, CEAL acquired 48% shareholding of China Aircraft Leasing Group Holdings Limited (CALG). Leveraging China Everbright Limited's financial strength and profound experience in the financial sector in China and Hong Kong, it is expected that CEAL will further expand the financial leasing business of China Everbright Limited, solidifying its aviation business and related investment fund. To further enhance its capital strength, CALG brought in Hang Tian Investment Holdings Limited, part of China Aerospace Science and Technology Corporation, as a strategic investor holding an approximate 8% interest in 2012. Accordingly, China Everbright Limited's holding in CALG decreased to approximately 44%. In July 2014, CALG was listed on the Main Board of the Hong Kong Stock Exchange (stock code: 01848.HK). After listing, CEAL holds approximately 35% stake of CALG, is still the single largest shareholder of CALG.

Introduction of China Aircraft Leasing Group Holdings Limited

China Aircraft Leasing Group Holdings Limited ("CALC") is a leading provider of full value chain aircraft solutions to the global aviation industry. CALC and its member companies provide one-stop tailor-made fleet solutions that encompass the aircraft lifecycle, including standing new aircraft leasing and sourcing, aircraft procurement, operating lease, purchase and leaseback, portfolio trading and asset management. The Group specializes in offering used aircraft sustainability solutions, including engine solutions and sales, airframe and components sales, MRO, and stub-life lease for aircraft. These services are strategically designed to enhance the value of aircraft fleets, leveraging a dynamic and flexible approach asset management.

As at 31 Dec 2024, CALC’s owned and managed fleet consists of 189 aircraft, with a 124 committed order book, and its global clientele comprises 40 airline lessees across 21 countries and regions, spanning the Asia-Pacific, Middle East, Europe, North America, Latin America, and Africa.

Founded in 2006 and headquartered in Hong Kong, CALC stands as the first aircraft operating lessor and currently the largest independent lessor in China. Listed in Hong Kong Stock Exchange as the first aircraft lessor in Asia under stock code 01848.HK in July 2014.

Business Model

Aircraft Operating Lease

CALC purchases aircraft from manufacturers and lease the aircraft to airlines with aircraft title belongs to the lessor. 

This structure allows more flexibility in reconstructing the fleet and reduces the initial acquisition costs for the airline. Additionally, aircraft asset is off balance sheet which allows a lower debt-to-asset ratio.

Sale and Lease back

CALC purchases aircraft from airlines then leases them back to the airlines. It helps airlines to lower the leverage ratio and optimize the fleet financing structure.

Disposal of finance lease receivables for aircraft

Through disposal of finance lease receivables, CALC sells the remaining rental receivables to investors, but retains the ownership of the aircraft. CALC reduces substantial market risks on future lease receivables. This will also lower its concentration risk on the related airlines in the short term while allowing CALC to have more capacity to enter into new leases with such airlines in the long run, creating more business opportunities.

Aircraft Recycling

CALC provides aircraft retirement strategies for Chinese airlines through various remarketing solutions, such as parts-out or lease-out.