China Aircraft Leasing Group Extends Hong Kong Aircraft Leasing Platform
China Aircraft Leasing Group Holdings Limited (“CALC”), a onestop aircraft full life-cycle solutions provider for global airlines, is listed on the Stock Exchange of Hong Kong Limited. The Group is engaging in two main business areas: new aircraft leasing and aging aircraft disassembling and recycling. CALC’s scope of business includes regular operations such as aircraft operating leasing, purchase and leaseback, and structured financing, as well as value-added services such as fleet planning, fleet replacement package deals, aircraft disassembling and component sales. CALC was established in 2006 with its headquarters in Hong Kong. The Group has over 150 employees, with offices located in Ireland, Malaysia, Singapore and Mainland China as well as delivery centres in the United States and France.
On 28 June 2017, the Legislative Council passed the “Inland Revenue (Amendment) (No. 2) Bill 2017”, which introduces a concessionary tax regime for aircraft lessors to carry out their aircraft leasing business in Hong Kong. This is an important first step towards establishing Hong Kong as an international aircraft leasing and aviation financing hub.
Being one of the largest aircraft operating lessors in China, CALC is one of the first companies to complete an aircraft transaction through its newly established Hong Kong leasing platform. CALC has taken a significant move to lease two Airbus A320 aircraft to two separate Japanese airlines in 2017: One aircraft was successfully delivered in August 2017, and they have also executed another aircraft leasing transaction under the new tax regime for delivery in 2018. CALC will continue looking to lease more aircraft to global airlines through their Hong Kong leasing platform in the near future.
CALC believes that the new tax regime will enhance the competitiveness in developing offshore leasing business and aircraft leasing industry in Hong Kong. It will also attract more international lessors, leasing-related businesses and professionals to Hong Kong. As the first aircraft lessor listed in Asia and the first mover in the aviation industry, the Group has continuously worked with the industry and relayed the industry’s needs to the Government of Hong Kong Special Administrative Region since 2011. CALC is one of the founding members of the Hong Kong Aircraft Leasing and Aviation Finance Association, which was established and supported by the key players of the aircraft leasing industry in June 2017, with a view to promoting the development of a ircraft leasing and aviation finance industry in Hong Kong.