CMBFLIL enters into $730 million lease financing agreement with Volaris to facilitate its purchase of seven A320 family aircraft (four Airbus A320neo and three Airbus A321NX)

Staff comments

1. CMB Financial Leasing (Ireland) Limited (CMBFLIL) was founded in Dublin, Ireland, in June 2016. It is the Irish aircraft leasing subsidiary of Shanghai-based CMB Financial Leasing Co., Ltd. (CMBFL). CMBFL is a financial services company that provides leasing and financing services, as well as other businesses. CMBFL was founded in April 2008 as a subsidiary of China Merchants Bank and is headquartered in Shanghai. 2. A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments. Under a capital lease (a financial arrangement where the lessee/borrower uses an asset and pays regular installments plus interest to the lender/lessor), rental payments are usually classified as interest and obligation payments, similarly to a mortgage (with the interest calculated each rental period on the outstanding obligation balance). AidData codes capital leases as loans. 3. Controladora Vuela Compañía de Aviación, S.A.B. de C.V., also known as Volaris, is a low-cost Mexican airline that operates flights in Mexico, the United States, Central America, and South America. Volaris offers point-to-point flights, a single class of service, and operates out of secondary airports. The airline also provides a variety of services, including online flight reservations, baggage information, web check-in, and inflight food. Volaris also offers hotel bookings, car rentals, trip insurance, and advertising space services.