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China Aircraft Leasing Newsletter 31 July

China Aircraft Leasing Newsletter 31 July

CDB Financial Leasing revisits US dollar bond market

China Development Bank Financial Leasing (CDB Financial Leasing), rated A1/A+/A+, has sold US$1bn dual-tranche senior unsecured bonds in its first visit to the US dollar bond market in more than two years. The issue was also its first offshore bond offering since it listed on the Hong Kong stock exchange in July last year.

Hong Kong given level playing field after government cuts tax rate on aircraft leasing companies

In June the government announced it would reduce the effective tax rate on aircraft leasing companies to less than 10 per cent from over 30 per cent. “The tax cut is significant for Hong Kong’s aircraft leasing business and it will make the [the city] more attractive I believe,” said Clarence Leung, a tax partner at PwC. He noted that the previously high tax rate was a big hurdle for aircraft lessors when entering into cross border aircraft leasing transactions.

Passenger Throughput of Chinese 10-million-passenger Airports Increased by 10.77% in 1H 2017

In the first half of 2017, the number of passengers handled by domestic airports of China continued to maintain a growth trend, with the total passenger throughput of 10-million-passenger airports increasing by 10.77%. According to the CAAC data, the domestic civil aviation market in 1H 2017 grew steadily. The entire industry completed 5.093 million flight hours and handled 2.093 million aircraft movements, year-on-year growth of 11.3%, 10% respectively.

S7 Airlines takes delivery of first A320neo leased from BOC Aviation

S7 Airlines took delivery of its first Airbus A320neo leased from BOC Aviation. The aircraft is also the first A320neo powered by the Pratt & Whitney PW1100G-JM engine to be delivered to any Russian carrier. BOC Aviation is scheduled to deliver a second Airbus A320neo to the airline in 1H2018. BOC Aviation MD and CEO Robert Martin said the delivery “Is a milestone for us in many ways: not only is this the first A320neo to be delivered to a Russian airline, but it is also the country’s first A320neo to be powered by Pratt & Whitney’s new engine technology

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