Thanks to Pandemic , Sale and Leaseback (SLB) will be the favourite option for sometime !
CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., announced the signing of a new agreement with Mexico’s number one airline, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (“Volaris”), for the sale and leaseback of four new Airbus A320neo aircraft.
The aircraft, two of which are scheduled to deliver to Volaris by October 2021, with the remaining two expected to arrive by May 2022, are leased on a long-term basis, bringing the total of CDB Aviation aircraft on lease to the carrier to 6.
Luís da Silva, CDB Aviation Head of Commercial, Americas, said:
“We are very pleased to offer tremendous value to our existing customer, Volaris, by leveraging the financial strength of our balance sheet and platform’s ability to move quickly in today’s demanding market conditions.”
The neos will support the optimization of the carrier’s fleet plan as it targets to reinforce its low-unit cost operating model to meet post-COVID-19 traffic requirements in alignment with the company’s sustainability strategy.
“Volaris will continue an aggressive strategy on growth and strong operational performance. Therefore, our fleet expansion is one of the main pillars of our ultra-low-cost model and will help us reinforce both local and international presence in all the markets we serve,” said Holger Blankenstein, Volaris’ Executive Vice President.
The fuel-efficient, new technology aircraft will be deployed primarily to strengthen Volaris’ leadership position in the Mexican domestic market, enabling the airline to seize opportunities as vaccination programs gain momentum and confidence in air travel accelerates.
“Deepening of our relationship with Volaris further advances our strategy to support Mexican airlines’ need for aircraft financing, as well as to gird up the ambitious development roadmap for the promising markets across Latin America,” added da Silva.
“Our current prerogative is, first and foremost, to avail the carriers of the attractive financing conditions and provide the required capacity to meet a resurgence in demand,” emphasized Peter Goodman, CDB Aviation Chief Marketing Officer.
“Our industry-leading financing solutions can be structured and executed expediently, within a matter of weeks, effectively addressing customers’ rapidly evolving requirements as they navigate the post-pandemic recovery.”
About Volaris
Volaris is an ultra-low-cost carrier (ULCC), with point-to-point operations, serving Mexico, the United States and Central America. Volaris offers low base fares to build its market, providing quality service and extensive customer choice. Since beginning operations in March 2006, Volaris has increased its routes from five to 180 and its fleet from four to 94 aircraft.
Volaris offers more than 460 daily flight segments on routes that connect 43 cities in Mexico and 25 cities in the United States with one of the youngest fleets in The Americas.
About CDB Aviation
CDB Aviation is a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (“CDB Leasing”) a 36-year-old Chinese leasing company that is backed mainly by the China Development Bank. CDB Aviation is rated Investment Grade by Moody’s (A2), S&P Global (A), and Fitch (A+).
China Development Bank is under the direct jurisdiction of the State Council of China and is the world’s largest development finance institution.
Picture : CDB Aviation.
