Minsheng unit lands airplane leasing deal

Air Berlin Plc, Germany's second-largest airline by passenger volume, will sell 11 aircraft - including used and new narrow-body aircraft - to Minsheng Commercial Aviation Ltd, the airline said on Thursday.

The transaction consists of five used Airbus 320 aircraft and two new deliveries in 2014, including one from the A320 family and one Boeing 737 aircraft, which all will be sold and leased back to the carrier, Air Berlin said.

In addition, Minsheng Commercial Aviation will have an option to buy four Boeing 737s from Air Berlin and put them into the Chinese market.

"The execution of the transactions will be completed in 2013 and 2014 respectively," Air Berlin said in a statement.

The deal is valued at around $400 million, Bloomberg reported on Friday.

Price is the primary reason for the leasing company purchasing the second-hand aircraft, which could be leased to small domestic airlines, business insiders said.

Minsheng Financial Leasing Co Ltd, the largest business jet leaser in Asia in terms of fleet size, is moving into the commercial aviation market and established a new division - Minsheng Commercial Aviation.

The leaser also has ambitions regarding the international market. Minsheng Commercial Aviation got its first international client through the transaction.

"With Air Berlin as our first international customer, Minsheng Commercial Aviation will continue to add other reputable airlines to our client list," said Johnny Lau, chief executive officer of Minsheng Commercial Aviation.