Hong Kong - 5 January 2016 - China Aircraft Leasing Group Holdings Limited (“CALC” or the “Group”, stock code: 01848.HK), the largest independent aircraft operating lessor in China, is pleased to announce that it has signed a Letter of Intent (“LOI”) with Jetstar Pacific Airlines (‘’Jetstar Pacific”), a leading low cost airline in Vietnam. The LOI outlined the lease of two A320 aircraft, in addition to the agreement for two aircraft signed in November 2015. All four A320 aircraft are scheduled to be delivered in 2016.
“We are excited to strengthen our partnership with Jetstar Pacific. According to IATA, Vietnam’s aviation market is forecasted to be the 7th fastest-growing in the world by 2017. The growing number of middle class travellers, especially in secondary cities, has created significant demand for low cost travel in Vietnam, yet the country’s LCC penetration is only around 50%, relatively low compared with similar ASEAN countries,” Jens Dunker, Senior Vice President - Aircraft Trading and Global Marketing of CALC said, “We are confident that the lease arrangements and near term deliveries will provide Jetstar Pacific with capital management efficiency and operating flexibility required for its accelerated fleet expansion and network plan for further growing its share in the fast-developing sector.”
The operating lease arrangement is part of Jetstar Pacific’s fleet expansion program. Jetstar Pacific’s fleet has grown from five aircraft in 2013 to 12 aircraft in 2015. The airline now operates scheduled services to 16 domestic and 6 international destinations, and plays a key role in the dual brand strategy adopted by its parent company – Vietnam Airlines. The two airlines now have a combined market share of around 70% in Vietnam and this number is expected to grow further in the coming years. Eyeing on the increased demand for low cost travel, Vietnam Airlines and the Qantas Group, another shareholder of Jetstar Pacific, aim to grow Jetstar Pacific’s fleet size to 30 aircraft by 2020.
CALC’s portfolio consists of 63 current generation Airbus and Boeing aircraft with an average age of less than 4 years. The Group expects to expand its fleet to 170 aircraft by 2022 and its strong clientele includes top-tier Chinese and Asian airlines as well as newly established regional airlines. The Group is speeding up its international expansion plans and has strengthened its cooperation with fast growing carriers from the expanding emerging markets in order to diversify its portfolio. CALC targets to build a balanced portfolio of Chinese and non-Chinese airlines client by 2020.
Launched in May 2008, Jetstar Pacific is Vietnam’s first low cost carrier. Vietnam Airlines, the flag carrier of the country, owns a 70% stake in Jetstar Pacific, while the Qantas Group holds a 30% stake. Jetstar Pacific is a member of the Jetstar Group, which is one of the largest airline groups in Asia Pacific.
