China Minsheng Investment (CMI) is preparing to take an equity stake in European business aviation services group Luxaviation, a Luxaviation spokeswoman told AIN, while declining to provide further details. The Luxembourg-based group, which has been calling itself Luxaviation-CMI for several months, acquired ExecuJet Aviation earlier this year and now operates more than 250 aircraft.
In April, Luxaviation announced a partnership with CMI subsidiary Minsheng Aviation. In a statement issued at the time, the company said that the partnership “will allow Luxaviation Group to develop its offer for the fast-growing Asian business jet market” and “enable its new Chinese partner to carry out comprehensive operations with overseas companies and institutions.” Minsheng Aviation was described as having “a significant fleet of jets managed and financed in China and Hong Kong and aircraft financing capacity.”
In September, CMI formed a new subsidiary, CM International Financial Leasing (CMIFL), to acquire 100 Airbus Helicopters H125s and H130s over five years. The company claims to be the first China-based rotorcraft leasing group and has a capital base of approximately $1 billion.
In December 2014, CMI paid approximately $194 million to buy a 61.25-percent stake in Chinese operator Minsheng International Jet from Minsheng Financial Leasing, which is part of China Minsheng Bank. Minsheng Financial Leasing formed Minsheng International Jet in April 2013 after buying Citic General Aviation and acquiring a Chinese aircraft operating certificate in the process. At the time, it predicted that the operator would have a fleet of 400 aircraft within five years. The slowdown in the Chinese economy, along with stock market volatility and a government campaign against alleged corruption, has dented business aviation growth in the country.
