Aviation and Aircraft Leasing - NET

Aviation and Aircraft Leasing

Andrew Davis

Head of Investment Promotion

29 April 2021

World renowned aviation hub

One of the Most Efficient Airports in the World

Note (1): 1 WLU (workload unit) = 1 passenger or 100 kg of cargo

Source: ACI World Airport Traffic Report 2017, covering ~1,000 airports in the world with annual aircraft movements >15,000 ATMs in 2017

Solid growth since 1998 till 2019

+150% +190% +157%

71.5 million passengers

2019 Figures

4.8 million tonnes cargo

420 thousand flights

World renowned aviation hub

Air cargo business is the bright spot of the industry in 2020

• Due to the impact of COVID-19, in 2020 HKIA handled a total

of 8.8 million passengers and 160,655 flights, which

represent year-on-year decreases of 87.7% and 61.7%,

respectively.

• The airport handled 68,660 cargo flights during the year, an

18.3% surge compared to 2019.

• Despite a challenging year, HKIA continued to be recognised

by the industry as a leading aviation hub. It was named “Best

Global Airport” by Asia Cargo News and “Asia’s Leading

Airport 2020” by the World Travel Awards.

Reclamation of approximately 650 Ha of land

using non-dredge methods including deep

cement mixing technique

Passenger Building with more than 280,000

square metres of floor area, a total of 57 new

parking positions and an apron.

3,800-metre-long new runway and its

supporting taxiway systems

2,600-metre-long new Automated People

Mover (APM) system connecting Terminal 2 with

the new passenger building, travelling at a top

speed of 80km/h and transporting up to 10,800

passengers per hour

Similar expansions in progress for Shenzhen

Bao’an Airport and Guangzhou Baiyun Airport

Third runway project

Increasing Capacity

Strengthening in Connectivity

Embracing Innovation

Reinforcing Cargo Leadership

Expanding Functionality

Upholding Sustainability

Aircraft Leasing the role of leasing has increased over the years

Hong Kong is expected to capture 18% of the global leasing market in 20 years, resulting in financing opportunities at a value of HK$707 billion, HK$2 billion in compensation associated with 1640 new jobs

Aircraft Leasing – ecosystem

22+ players from 8 countries 6 world top 10 players 5 listed on HKEX Noticeable transactions using HK platform with airlines / lessors in

Korea, Qatar, Japan, Indonesia, Chile, Russia and Mainland China Association HKALA Dedicated website www.aircraftleasing.hk

Aircraft Leasing - support

Unwavering government support

• the lowest effective tax rate offered for lessors (2%-5%)

• CDTA expanded to 45, with favourable withholding

tax rates with many treaty countries

Increasing co-operative opportunities with Mainland FTZ • lease and sub-lease between HK , Dongjiang and Nansha FTZ

• agreements to sign to reduce withholding tax between HK

and Mainland FTZ

Leveraging on HK’s financial platform • Aviation finance

• Corporate Treasury Centre (CTC)

Hong Kong is well placed for businesses of all sizes to grow, thanks for its robust legal system & business-friendly environment

Capital Fund Raising Open and Free Market Simple & Low Tax

Excellent Accessibility Transparent Rule of Law World class professional

services

• By end 19, 160 IPOs

completed, raised

HK$307.8bn.

• Weighted voting right

structure allowed and

preferential pre-revenue

biotech listing

• HK International Airport: world busiest & best airport, 220 destinations, half world’s population within 5-hr flight

• HK-Zhuhai-Macao Bridge

• Express Rail Link

• No barrier to trade (tariffs

and quotas)

• No restrictions on inward

& outward investments

• No FX, free trade regime

• Low, simple and

stable tax regime

• Tax rate at 8.25% for

the first $2M profit

and 16.5% for

remaining

• From accounting assistance to

legal advice, the city offers a

full range of service providers

to support economic growth

across all sectors

• Legal system is underpinned by an independent judiciary

• The only common law jurisdiction in China operating both Chinese and English

8

InvestHK’s Role

How We Help Companies Grow

10

Guidance in strategic

implementation and

evaluation of business

decisions

Advising on living and

working in Hong Kong

(housing, healthcare,

schooling and

networking, etc)

Providing support with

business licences, visa

applications,

trademark registration,

IP and trade

regulations, etc

Informing on tax and

business regulations

Arranging meetings

with service providers,

professional

associations and

government

departments

Advising on sector-

specific industries and

opportunities

Connecting with

lawyers, accountants,

human resource

specialists,

consultancies,

designers, interior

specialists and real

estate companies, etc

Providing marketing

and public relations

services

Tools for continuous

expansion

Ensuring a sustainable

foundation for growth

Continuing to support

across marketing and

public relations

Planning Set-up Launch Expansion

Andrew Davis

Head of Investment Promotion InvestHK

Direct: (44) 20 7290 8207

Mobile: (44) 7753 823 484

Email: [email protected]

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