China Aircraft Leasing Group Holdings Ltd (CALC) has announced the establishment of a Harbin-based joint venture, provisionally named FL ARI Aircraft Maintenance & Engineering Company Ltd. The JV partners are CALC subsidiary Aircraft Recycling International Ltd (ARI), Lithuania-based MRO provider FL Technics and CALC, with stakes of 49%, 40% and 11%, respectively.

Backed by a total investment of $23m, the new company will focus on aircraft base maintenance, scheduled checks and overhaul, aircraft disassembly, engineering services, technical training and consultation.

It will also provide MRO and supply services for various components, including engine, APU and landing gear. In future, ARI will focus on aircraft parts and component supply, mid- to end-of-life aircraft trading, logistics and supply chain management.

The agreement is seen extending ARI's business scope into MRO services, complementing its current aircraft disassembly and part-out service, and further enrichening ARI's offerings along the aviation value chain.

CALC says the agreement strengthens its strategy in providing solutions covering the full aircraft life-cycle.

Established in 2006 and headquartered in Hong Kong, CALC is currently the largest independent lessor in China, with a fleet of 112 aircraft and an order book of 192 new aircraft. CALC established ARI in 2014. ARI operates an aircraft recycling plant in Harbin, China, described as Asia’s first large-scale aircraft recycling facility.