Lithuanian Joint Venture Sees Unprecedented Growth in China
The largest Lithuanian investor in the People‘s Republic of China – AviaAM Leasing – has added a 14th brand new aircraft to the portfolio of its Joint Venture, AviaAM Financial Leasing China. The aircraft brings the value of the Joint Venture’s portfolio to USD 835 million.
AviaAM Financial Leasing China was established, in August 2016, as a joint venture between the Henan Civil Aviation Development and Investment Company (HNCA), headquartered in Henan Province, China, and AviaAM Leasing, headquartered in Vilnius, Lithuania. In two short years, AviaAM Financial Leasing China has acquired 13 Airbus A320 family aircraft and 1 Boeing 777 aircraft. This growth is unprecedented within the aircraft financing industry and is due to a combination of international know-how from AviaAM Leasing and strong governmental support and insights from Henan authorities and its partner HNCA.
As part of the Belt and Road initiative, AviaAM Financial Leasing China has established a well-founded infrastructure in 10 Belt and Road countries. These strategic partnerships with aircraft manufacturers and governmental bodies enable AviaAM Financial Leasing China to pursue large goals while still being manoeuvrable and flexible when working with customers.
“AviaAM Financial Leasing China is just beginning to reach its potential, as a joint Chinese - Lithuanian venture based on the Belt and Road initiative. Thanks to efficient processes and strategic moves, all aircraft are being leased and are operating successfully. We believe that the friendship and teamwork between our countries will lead to even more impressive results in the Joint Venture”, says Ms. Liu Xia, Chairman of the Joint Venture.
AviaAM Financial Leasing China is on track to become a big player in the world of aircraft financing. The most recent aircraft acquired, a Boeing 777-300ER, is one example of the innovation coming from the company. This Boeing is the first wide-body aircraft AviaAM Financial Leasing China has owned. The success of AviaAM Financial Leasing China is a result of both smart business strategies and positive political support. The company’s unique position allows it to succeed in countries, such as the Commonwealth of Independent States, where it has been hard to receive financing in the past.
“Our Company is going straight to the source of innovation and working with the largest aircraft manufacturers in the world – Airbus and Boeing – to ensure that we can deliver the best and most competitive aircraft to our customers. The Chinese market is important for global aviation. Thus, we have forged strong strategic partnerships which have established a solid foundation for connectivity and cooperation throughout Eurasia,” says Mr. Tomas Sidlauskas, CEO of AviaAM Financial Leasing China and Board Member of AviaAM Leasing.
With its growing influence and fleet size, the company is in a good position to further its relationship in current and new regions. An innovative business model, strong support from AviaAM Leasing Board Members, competitive lease rates in China, and firm backing from HNCA, set the company up to become one of the top players in Asian aircraft financing.