Li Ka-shing is one of the richest entrepreneurs in China. (Photo : Reuters)
Li Ka-shing, Asia's richest tycoon, is all set to buy 60 passenger jets in a series of transactions amounting to more than $2.5 billion.
Cheung Kong Holdings, led by businessman Li, revealed its business plan of expanding and moving into aircraft leasing by buying 60 planes in a filing written to Hong Kong's stock exchange on Tuesday.
The strategy is sure to make Li one of the most influential businessmen in global aviation.
Cheung Kong informed that they intend to buy Boeing and Airbus aircraft from Jackson Square Aviation, GE Capital Aviation Services Ltd. LLC, MC Aviation Partners Inc. and BOC Aviation Pte.
As per SCMP, this is a smart and calculated move as Li and his company had announced their plans in August to buy Dublin-based AWAS in a $5-billion deal involving 100 aircraft.
The new purchases, according to analysts, will help Li gain stability and ensure money inflow in the long-term.
This deal also encompasses acquisitions worth $800 million made through a joint venture formed with a subsidiary of Japan's Mitsubishi Corp., according to Shanghai Daily.
This move by the company comes at a time when leading airlines are in the process of shutting down or cutting costs, fearing the increasing number of budget carriers in Asia.
The opportunity was first revealed during a stock-exchange announcement in August, and the company is keen to utilize the benefit, according to sources close to the key decision-makers in the firm.
Apart from Cheung Kong Holdings, Li also owns conglomerate Hutchison Whampoa Limited and has global assets in retail, property, utilities and ports.
China is entering a boom in aviation, following the lifting of the six-year ban that prohibited the establishment of private airlines. Beginning next year, the government will also allow private aircraft to fly below 1,000 meters without military permission.
