FL GROUP and Air China Ltd. today declared their intent to enter into an
agreement for the lease of five Boeing 737-800 aircraft at a signing ceremony
in Beijing China, attended by Mr.
Olafur Ragnar Grimsson, President of Iceland. The Chairman of FL GROUP'S board Mr. Hannes Smarason and Ms. Zhang Yang President of Air China Group
Import&Export Trading Co. signed the agreement on behalf of their
According to the agreement ICELEASE which is a subsidiary of FL GROUP will lease
5 new Boeing 737-800 aircraft to Air China for 8 years. The
aircraft will be delivered to Air China in February to
July next year, directly from Boeing's production line in Seattle. Air China is China's largest airline
with numerous destinations in China and around the
world. Air China’s fleet consists
of about 150 aircraft and is expanding rapidly.
Today's agreement is made following FL GROUP'S purchase of 15 new Boeing
737-800 aircraft earlier this year. The purchase agreement with Boeing is FL
GROUP'S largest aircraft order to date.
The chairman of FL GROUP'S board, Hannes Smarason, said today that the
agreement with Air China marks the
beginning of a new era for FL GROUP. “It is very important for us to have
entered the Chinese market and to start cooperating with an outstanding airline
like Air China. We look at this
agreement as only the beginning of long time future cooperation which will
benefit both companies. When we purchased the aircraft earlier this year we
made plans with the Japanese aircraft lease company Sunrock which involved
leasing the aircraft in Asia and other markets. The
progress so far has been beyond our expectations. FL GROUP has a historic
relationship with Boeing and we purchased the aircraft at favourable prices.
The agreement today confirms that our decision to enter the aircraft lease
market in this way was correct”, said Hannes Smarason.
The agreement signed
today was prepared by FL GROUP'S new subsidiary Icelease, which handles buying,
selling and leasing of aircraft on behalf of FL GROUP. The Managing Director of
ICELEASE is Halldór Vilhjálmsson. ICELEASE is currently working on lease
agreements in partnership with the Sunrock for the 10 remaining Boeing 737-800
aircraft that will be delivered to FL GROUP in late 2006 and in 2007.