Bohai Leasing To Buy 20 Percent Of Avolon

China's Bohai Leasing has agreed to buy 20 percent of US-listed Avolon for USD$429 million, in the latest acquisition by a unit of aviation and shipping conglomerate HNA Group.

The purchase is HNA's biggest in logistics since the USD$1 billion purchase of marine container leasing firm GE SeaCo in 2011, and will provide access to an aircraft leasing market dominated by GECAS and AerCap.

"This investment in Avolon will bring Bohai an increasing presence in the global aircraft leasing sector," chief executive Chris Jin said in a statement.

Chinese lessors, mostly backed by state-owned banks, have been expanding in recent years, as large carriers such as Hainan Airlines, Air China, China Eastern Airlines and China Southern Airlines launched more routes at home and overseas.

Boeing estimated China will need over 6,000 new aircraft over the next 20 years.

Bohai parent HNA owns miscellaneous shipping and aerospace companies including Hainan Airlines, and has been buying logistics and hotel assets to expand globally.

Avolon sells aircraft leasing and lease management services to airlines and aircraft investors. The Dublin-based firm has a fleet of over 260 aircraft serving 56 customers in 33 countries.