Boeing [NYSE: BA] and China Aircraft Leasing Group (CALC) [SEHK stock code: 01848 HK] today announced an order for 50 737 MAX airplanes at the 2017 Paris Air Show.
The agreement includes an order for 15 of the new 737 MAX 10, which was launched Monday at the show. This order is CALC's first direct purchase from Boeing, with a value of $5.8 billion at list prices.
"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 , CEO 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 currently owns a fleet of 89 aircraft. With this new order, its outstanding order book now consists of 139 aircraft, putting the company on track to deliver a total of no less than 230 aircraft by 2023.
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.
"CALC understands what the 737 MAX will provide to airlines when it comes to economics, reliability and passenger comfort," said Ihssane Mounir , senior vice president of Global Sales and Marketing, Boeing Commercial Airplanes. "We're especially proud that CALC is part of the MAX 10 launch, and we're honored that this is their first direct purchase from Boeing."
Like all of Boeing's 737 MAX models, the MAX 10 incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets, the Boeing Sky Interior, large flight deck displays, and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.
The 737 MAX is the fastest-selling airplane in Boeing history.
Source: The Boeing Company (NYSE: BA)
Date: Jun 20, 2017