737-900ER

Hong Kong-based conglomerate Cheung Kong has entered into a series of agreements to buy aircraft worth around $2bn to enter the aircraft leasing market.

Under the deals, Cheung Kong will buy 45 airliners and interest in around 15 aircraft.

The company has signed deals with GE Capital Aviation Services and Bank of China’s aviation leasing business.

Under the deal, the company will buy 11 Airbus A320-200s, five Boeing 737-800s and two 737-900ERs as well as three 737-800s from GE affiliates; ten airliners from BOC Aviation and 14 aircraft from Jackson Square Aviation.

Separately, Cheung Kong has also agreed to create a 60/40 joint venture (JV) with MC Aviation Partners, leasing unit of Japan’s Mitsubishi. Cheung will invest $132m in the JV and will manage its operations.

Cheung Kong said in a statement: "The aircraft leasing business will generate long-term steady income for the group."

The acquisitions will provide the company with a platform to further develop its aircraft ownership and leasing business, Cheung Kong said.

Passenger travelling in Asia is estimated to grow by around 4.9% each year through 2034, according to a recent study by International Air Transport Association.

The latest news comes after Cheung Kong submitted a preliminary, non-binding proposal to acquire Awas Aviation 100 airliners, which are being sold for around $5bn, reported Bloomberg.

Image: A Boeing 737-900ER airliner. Photo: courtesy of Boeing.

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