CDB Aviation and Volaris Agree to Sale and Leaseback of Four New A320neo Aircraft
Transaction with Mexico’s Number One Airline Reinforces Lessor’s Commitment to Supporting Airlines as Market Recovery Continues
MEXICO CITY – August 9, 2021 – CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (“CDB Leasing”), 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.”
Volaris or the “Company” (NYSE: VLRS and BMV: VOLAR), 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 begin-ning 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. Volaris targets passengers who are visiting friends and relatives and cost-conscious business and leisure travelers in Mexico and in selected destinations in the United States and Central America. Volaris has received the ESR Award for Social Corporate Responsibility for eleven consecutive years, it entered the MILA Pacific Alliance Dow Jones Sustainability Index in 2020 and the S&P/BMV Total Mexico ESG Index from the Mexican Stock Exchange in 2021. www.volaris.com
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 (A1), 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. It is also the largest Chinese bank for foreign investment and financing cooperation, long-term lending and bond issuance, enjoying Chinese sovereign credit rating.
CDB Leasing is the only leasing arm of the China Development Bank and a leading company in China’s leasing industry that has been engaged in aircraft, infrastructure, ship, commercial vehicle and construction machinery leasing and enjoys a Chinese sovereign credit rating. It took an important step in July 2016 to globalize and marketize its business – listing on the Hong Kong Stock Exchange (HKEX STOCK CODE: 1606). www.CDBAviation.aero
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