20 March 2017, Hong Kong - Aircraft Recycling International Limited (“ARI”, the “Company”), a member company of CALC (“China Aircraft Leasing Group Holdings Limited”, SEHK stock code: 01848.HK), a full value-chain aircraft solutions provider for global airlines, is pleased to announce that the Company has acquired a 100% equity interest in Universal Asset Management, Inc. (“UAM”), one of the world's leading global aviation services providers based in Tennessee, USA.
UAM has nearly three decades of commercial and technical experience managing customers' aviation assets, disassembling aircraft and supplying after-market components to the commercial aviation industry. With its track record of disassembling over 300 aircraft, UAM, which is known for its cutting-edge technological solutions, has raised the bar in the aircraft recycling industry. UAM is now a wholly owned US subsidiary of ARI, responsible for ARI's aircraft recycling business overseas, and a part of its global disassembly and distribution platform. Together, ARI and UAM will form global solutions for aging aircraft, further consolidating CALC's status as a full value-chain aircraft solutions provider.
Christina Ng, Deputy Chief Executive Officer and Chief Operating Officer of ARI, has been appointed as Chairwoman of UAM, while Keri Wright and Shawn Kling will continue to lead UAM's operations as Chief Executive Officer and President respectively. UAM will retain its brand name and continue to operate in the same manner with the same management team, while all staff will remain in place across all its business units. While ARI will leverage UAM's well-established global brand and track record of serving over 1,000 customers in 150 countries to expand into overseas markets, UAM will leverage ARI's growth capital, and draw upon CALC's network and resources, to advance changes in the aviation industry through the delivery of technological solutions and the further growth of its portfolio.
Christina Ng, Deputy Chief Executive Officer and Chief Operating Officer of ARI, and Chairwoman of UAM, commented, “We are delighted to acquire such a strong and experienced partner with an impressive record of profitability and growth. This brings together the strengths and expertise of both ARI and UAM to ensure a strategic business deployment that will capture huge potential in the mid- to late-life aircraft management industry, and will see aircraft completely managed through their full-life cycle, which will enhance the asset value of aircraft fleets. While expanding our presence in global markets, ARI will further enhance our total aircraft solutions for aging aircraft, so as to cater to the specific needs of the Chinese market.”
Keri Wright, Chief Executive Officer of UAM, said, “I am pleased that UAM will be working with ARI, and I am very impressed with the commitment it has shown to creating value for shareholders, customers, employees and suppliers. Together, we will draw upon our common vision and aim to help deliver positive and much needed change to the industry.”
Mike Poon, Chief Executive Officer of CALC, added, “This strong alliance forms another part of the strategic business deployment of CALC's full-value chain and globalization strategy. ARI and UAM can draw upon CALC's experience, track record and network in the aircraft leasing industry to expand its own client base and develop its mid- to late-life aircraft-related businesses, and ARI and UAM will benefit from greater economies of scale and synergy. This is consistent with CALC's globalization strategy and will enhance our influence in the global aviation industry.”
Shawn Kling, President of UAM, commented, “This acquisition is extremely valuable to our Airline and MRO clientele around the world. From a strategic perspective, we will have significantly enhanced capabilities to meet their component demand, while simultaneously bolstering their own balance sheets on aircraft and aircraft components they are planning to take to the market place. Keri set a course to innovate and modernize the industry after acquiring the company in 2013. Under her leadership, the company embraced entrepreneurship and shattered nearly every previous record, and today we have a balance sheet that would not have been possible before. We are a healthy, disciplined, and highly focused team that is anxious to bring about much needed change in our industry to the benefit of our customers and mutual stakeholders at home and around the world.”
ARI is a downstream extension of CALC's aviation value chain, and is mainly engaged in asset management and total aircraft solutions relating to aging aircraft. It is currently constructing an aircraft recycling facility in Harbin, China, the largest in scale throughout Asia and the world. With UAM's Disassembly Center in Tupelo, Mississippi, the combined operations will be capable of meeting global demand. UAM is dedicated to pushing the industry forward by utilizing new technology and operating systems, which will have a profound impact on shaping the future of the industry.
By combining UAM's well-established reputation and extensive operational expertise with ARI's capital, market network and integrated full-life solutions, this acquisition will enable ARI to benefit from immediate access to UAM's aircraft disassembly technology, business operations experience, industry accreditations, professional recognition from airlines and existing lucrative relationships with a variety of industry leaders.
The aircraft recycling industry sector in Asia Pacific, and China in particular, is growing rapidly, thanks to the sustainable expansion of in-service fleets which is creating strong demand for aircraft maintenance services, and for components and parts. Being the first company in Asia to provide total aging aircraft solutions, ARI is poised to capture first-mover advantage in the downstream aircraft market in the region, complemented by UAM's facility in Tupelo, Mississippi, which will serve as a major platform for its services overseas.
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