The largest independent aircraft lessor in China – China Aircraft Leasing Group Holdings Limitedhas signed a strategic cooperation agreement with Eastern Airlines Technic Co, Ltd. regarding the maintenance and technical consulting services for the group's current fleet. Based on a mutual beneficial ground with complementary advantages, CALC and Eastern Airlines Technic will explore and establish a long-term strategic cooperation along the aircraft value chain with quality services.

Based on the agreement, Eastern Airlines Technic will provide CALC with aircraft/engine maintenance services and technical advisory services that facilitate the lessor to meet applicable airworthiness requirements. Other services include on-site emergency support, aircraft maintenance cost analysis, parts solutions and training, etc. The cooperation agreement is valid for three years. The strategic partnership will promote CALC's standards for aircraft asset management, and lay a foundation for the Group's expanding international business as well as for its aircraft disassembly centre project which is progressing by stages. It will, in turn, further enhance CALC's strategy to become a "full value-chain aircraft solutions provider" to offer one-stop aircraft solutions for domestic and international airlines.

Stronger demand for maintenance and repair services for commercial aircraft is expected due to increasing fleet sizes and average aircraft age of the major Chinese airlines. Industry forecast shows that aircraft maintenance industry would peak in 2015. By the end of 2015, China aviation maintenance market will reach RMB45 billion with considerable profits. However, this high growth market, in particular the high-end segment, is dominated by foreign capital.

Mr. Jerry DUAN, Senior Vice President - Technical and Asset Management of CALC said, "Since our establishment, CALC has been pursuing professionalism and specialization while developing ourselves into a full value-chain aircraft solutions provider. Leveraging the core competence of Eastern Airlines Technic in terms of comprehensive aircraft portfolio and extensive maintenance experiences, the partnership will bring CALC better resources and will provide us with advanced and all-rounded technical support. In return, CALC will provide Eastern Airlines Technic with overseas market information, and bridge it with our overseas customers. China Eastern Airlines is an important customer which motivated us to create innovative business model. Our partnership started in 2013, when CALC became the first in China to complete a bundled package deal of new aircraft leasing and old aircraft trading. Not only does this maintenance and technical consulting collaboration deepen our cooperation with China Eastern Airlines Group, it also adds value to our positioning as a full value-chain aircraft solutions provider; and facilitate the further development of China's aviation industry. We look forward to further cooperation with China Eastern Airlines and to creating more win-win models. "