HNA's plane leasing unit sells 41 aircraft

Updated 2018-03-28 15:18:02

Bohai Capital Holding Co Ltd, a finance leasing company and a sub-affiliate of HNA Capital, said its wholly-owned aircraft lessor Avolon Holdings Ltd has sold 41 aircraft to Sapphire Aviation Finance I Ltd, as the troubled HNA continues to sell assets to improve liquidity.

The Ireland-headquartered international aircraft leasing company Avolon Holdings, and Sapphire Aviation, a newly established special purpose company, closed a deal for 4 million last week, according to a statement by Bohai Capital released on Monday.

Avolon Holdings will continue to manage the leases of the 41 aircraft, and it will charge management fees of 3 percent of the rental income, it said in the statement.

Since Jan 17, Shenzhen-listed Bohai Capital has suspended trading in its shares, and the company said it is currently undergoing significant asset reorganizations.

The portfolio comprises a mix of wide-body and narrow-body aircraft with, as of February, an average age of about 12 years and an average remaining leasing period of 4.4 years.

Since 1999, Bohai Capital has purchased airplanes directly from aircraft manufacturers. Earlier, it made a string of overseas acquisitions, including the purchase of aircraft leasing company Avolon Holdings and the airplane assets of GE Capital Aviation Services, in addition to buying US commercial jet leasing firm C2 Aviation Capital.

Meanwhile, Avolon Holdings plans to contribute no more than million and hold a stake in Sapphire of less than 10 percent. Third-party investors will purchase the remaining notes.

Bohai Capital said in the statement that the latest sales will help the company improve liquidity, maintain a young fleet and purchase the new generation of aircraft. It will also help the company to raise its competitiveness in the global aircraft leasing market and upgrade its asset structure.

Domhnal Slattery, CEO of Avolon Holdings, said: "The disposal of 41 aircraft from the Avolon fleet, facilitated by the launch of the Sapphire vehicle, opens another channel for Avolon to bring third-party investment into the midlife aircraft space while increasing our managed fleet and expanding our footprint as a servicer in the asset-backed security market."

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58October 16 2018 20:49:46

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16October 16 2018 20:49:46

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18October 16 2018 20:49:46

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords