Hong Kong’s magnate to form leasing JV with Mitsubishi for $2b worth aircraft

Mitsubishi Corporation ("MC") has entered into an agreement with Cheung Kong (Holdings) Limited ("CK"), leading Hong Kong’s  holding controlled by Li Ka-shing, Asia’s richest man, to newly establish a joint venture dedicated to aircraft leasing.

CK will own 60% and MC 40% of the JV. Based on the agreement, MC will transfer to the JV a seed portfolio of 15 aircraft, out of the approximately 100 aircraft that it owns or manages. CK to acquire a total of twenty-one aircraft from GECAS, a total of up to ten aircraft from BOC Aviation and up to fourteen aircraft from JSA. The JV will open offices in Hong Kong and Ireland, two key hub stations in aircraft lease and financing.

The chairman of CK, Li Ka-shing, is focusing on the rapid development in the Chinese aviation market. According to IATA, China will overtake the U.S. as the world’s biggest air travel market by 2030. However, due to interest growth in the aircraft leasing sector, China may surpass U.S. even earlier. 

Source and image: Cheung Kong