Skip to content
AidData logo

Overview

CDB Aviation Lease Finance leases one Airbus A320-200 aircraft to Allegiant Air

Commitment Year•2021Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesOverseas Jurisdiction•IrelandSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 26, 2021
Start (actual)
Dec 6, 2021
End (actual)
Dec 6, 2021

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned companies

  • CDB Aviation Lease Finance DAC

Receiving agencies

Private Sector

  • Allegiant Air, LLC

Loan description

CDB Aviation Lease Finance leases one Airbus A320-200 aircraft to Allegiant Air

Interest type•Unknown

Narrative

Full Description

Project narrative

On November 26, 2021, financial close was reached on a deal in which CDB Aviation Lease Finance DAC — the wholly-owned Ireland-based subsidiary of China Development Bank Financial Leasing Co., Limited (CDB Leasing) — entered into a mandate for an operating lease agreement with Allegiant Air, LLC — a Nevada-incorporated ultra-low cost airline headquartered in Las Vegas, Nevada wholly-owned by Allegiant Travel Company, a Nevada-incorporated holding and hospitality company headquartered in Summerlin, Las Vegas and listed on the Nasdaq Stock Exchange — for one used Airbus A320-200 aircraft. The 2011-vintage aircraft carried 186 economy seats and formerly leased to Filipino low-cost carrier Cebu Pacific Air before being returned and undergoing maintenance and repainting in Guangzhou before delivery. The aircraft arrived in the United States in late November 2021 and was delivered on or before December 6, 2021.

Staff comments

1. 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 bond payments, similarly to a mortgage (with the interest calculated each rental period on the outstanding bond balance). AidData codes capital leases as loans.