First double SPV cross-border lease aircraft delivered in Nansha

The American Airlines Leasing Company (ALC), established in Hong Kong, delivered a Boeing 787-9 Dreamliner to China Southern Airlines in the Nansha Free Trade Zone on March 31.

The first double SPV cross-border lease aircraft in the Guangdong-Hong Kong-Macao Greater Bay Area. [Photo/gznsnews.com.cn]

Nansha proposes to build a comprehensive cooperation demonstration zone focusing on the development of special finance such as aircraft chartering.

China Southern Airlines Group responded to the call to make full use of the Nansha Free Trade Zone + Hong Kong, set up a dual SPV cross-border leasing model, and for the first time initiated the Guangdong-Hong Kong cooperation aircraft leasing business, helping to build a global aviation leasing center.

With the Belt and Road Initiative and the construction of the Greater Bay Area as the background, Nansha Free Trade Zone cooperated with Hong Kong to develop a cross-border bonded and leasing model.

By taking advantage of Hong Kong's international financial center and bilateral tax treaties with more than 40 countries, compared with traditional cross-border leasing it greatly reduces airline leasing costs and saves cash flow.

When the aircraft is retired, the assets can continue to be transferred to Southeast Asia, Europe and other international markets through Hong Kong, extending the term of aircraft leasing services to meet market demand.

Thanks to Nansha's financial innovation and development policy, 68 aircraft have been delivered there.

A number of innovative businesses including cross-border transactions of second-hand aircraft mixed assets and cross-border bonding and leasing have been carried out, which supports the Nansha real economy and helps the construction of the Guangzhou International Aviation Hub.