CALC and Jetstar Pacific sign agreement to lease two A320 aircraft

China Aircraft Leasing Group Holdings Limited (CALC), the largest independent aircraft operating lessor in China, announced that it has reached a tentative agreement with Jetstar Pacific Airlines, a low-cost airline in Vietnam, for the lease of two A320 aircraft. The two Airbus aircraft will be delivered in July and August 2016. Jetstar Pacific is CALC’s first customer in Southeast Asia, marking a significant milestone for the group’s international expansion.

“Vietnam’s aviation market is forecast to be the world’s 7th fastest-growing by 2017 according IATA while the World Bank Group data showed that air passengers carried in Vietnam grew by over 120% between 2009 and 2014. We are very proud to partner with Jetstar Pacific and to provide them with our new Airbus A320 aircraft to support their fleet expansion program,” Jens Dunker, Senior Vice President – Aircraft Trading and Global Marketing of CALC said, “CALC and Jetstar Pacific share the same goal to differentiate ourselves in the dynamic and competitive international aviation market. We are confident that the lease arrangement will enhance the carrier’s operating flexibility and capital management efficiency.”

The operating lease arrangement is part of Jetstar Pacific’s fleet expansion program. It is implementing a dual-brand strategy with its parent company, Vietnam Airlines, in expanding its domestic and regional network. The combined market share of Jetstar Pacific and Vietnam Airlines in the home market is nearly 70%.

“The partnership with Jetstar Pacific is another significant step in our global expansion. CALC began our first foray into the European market earlier this year and is now expanding our footprints in Southeast Asia. We will continue to step up our effort in international expansion and strengthen our cooperation with fast growing carriers from the expanding emerging markets like Jetstar Pacific, in order to diversify our portfolio” added Jens Dunker.

CALC’s portfolio is currently made up of 57 current generation Airbus and Boeing aircraft with an average age of 3.8 years. It has 111 aircraft on order with Airbus and is on schedule to expand its fleet to 168 aircraft by 2022. Its strong clientele includes top-tier Chinese and Asian airlines as well as newly established regional airline. The Group is currently implementing a clear global expansion strategy targeting to build a mix of 50/50 Chinese and non-Chinese airlines client split by 2020.

Launched in May 2008, Jetstar Pacific is the first low cost airlines in Vietnam. Vietnam Airlines, the flag carrier of the country owns a 70% stake in Jetstar Pacific, while the Qantas Group is holding a 30% stake. It is part of the Jetstar Group, one of the largest airline groups in Asia Pacific. Jetstar Pacific’s current fleet consists of 9 A320 and 2 A321 aircraft. The carrier launched its first scheduled international route from Ho Chi Minh to Singapore on 27 October 2014 and is currently operating both domestic and international services.