Indonesia's Lion Group breaks into aircraft leasing industry
Published on Aug 6, 2014 8:28 PM
SINGAPORE (REUTERS) - Indonesia's Lion Group, which boasts an order backlog of about 500 Boeing and Airbus aircraft, has clinched the first deal for its leasing subsidiary in a key diversification move for one of the world's fastest-growing airlines.
Two years after setting up shop in Singapore, Transportation Partners (TP) has signed a deal to lease three new Boeing 737-800 planes to 9 Air, the low-cost airline of China's Juneyao Airlines, TP's chief operating officer told Reuters.
Though TP's deal with 9 Air involves just three aircraft, the potential is significant in a market like China where airlines will need nearly 6,000 new jets over the next 20 years. Many of those aircraft, valued at US$780 billion (S$975 billion) at list prices in total, will be leased rather than bought as carriers seek to cap long-term commitments.
The three aircraft will come from Lion's existing order for Boeing 737 aircraft, said John Duffy, a former banker hired by Lion co-founder Rusdi Kirana to head TP.
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