China Aircraft Leasing group seeks deeper aftermarket ties with HAECO

CALC and HAECO have agreed to explore an engine quick-turn platform in Hong Kong
Initial focus includes quick-turn services, hospital repair and engine asset management
The partnership will also optimise utilisation of used serviceable material
CALC has raised residual value expectations from 5-15pc to 5-40pc of original cost
FTAI Aviation and Willis Lease Finance are also active in these fields

China Aircraft Leasing Group is seeking deeper ties with the aftermarket and the chance to extract more value from late-life assets, with the Hong Kong-based aircraft lessor and local MRO giant HAECO agreeing to explore the development of an engine quick-turn platform in Hong Kong. The initial focus will be on quick-turn services, hospital repair and engine asset management, with other lessors already active in these fields including FTAI Aviation and Willis Lease Finance Corp. Willis recently confirmed it was in advanced talks to add an engine repair facility in Asia to capitalise on sustained growth for the company’s MRO activities.

CALC and HAECO will also partner to optimise the utilisation of used serviceable material, with CALC already having a presence in this field through Harbin-based China Aviation Aftermarket, an associate company that provides aircraft recycling, component and base maintenance services. The partnership represents a strategic move to advance high value-added aviation services in Hong Kong and the wider region. The collaboration will enhance aircraft asset utilisation and unlock new opportunities across the aviation value chain.

Two days before its HAECO announcement, CALC disclosed that it was raising its residual value expectations for aircraft and engine assets from 5-15pc of original cost to 5-40pc. The company explained that management performed a reassessment of residual value assumptions applicable to the group’s aircraft and engines, taking into account the continued increase in aircraft market values in recent years. The updated expectations are supported by market evidence, actual aircraft utilisation, redelivery conditions and current and expected market and business development.

Mike Poon, CEO of China Aircraft Leasing Group, shared: “We are delighted to partner with HAECO to advance high value-added aviation services in Hong Kong and the wider region, enhance aircraft asset utilisation and unlock new opportunities across the aviation value chain.”