China's Fintel seals deal to buy lessor MK Aviation

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Chinese investment company Financial Telecom (Fintel) has finalised an agreement through its US arm to acquire small Panama-based lessor MK Aviation.

Fintel is acquiring 75% of the stock of MK Aviation through a new share issue of its own but says MK’s chairman, Mory Kraselnick, will retain more than 50% of the voting stock in the new company and be chairman.

It previously indicated that the new entity would be called MKA Capital – although a statement issued today does not mention that.

Other members of the management team comprise: Fintel CEO David Chen; MK Aviation VP operations Israel Khoshen; and MK Aviation VP marketing Ariel Kraselnick.

MK Aviation focuses on the Latin American market and owned the West Caribbean Airways Boeing MD-82 lost in August in a fatal accident in Venezuela that is still under investigation.

Fintel says: “The consolidated entity will have two primary focuses – portfolio investments in Chinese private sector, and the leasing and sales of aircraft and engines. It plans to expand the existing aircraft leasing and financing operations into Asia, particularly China, where growth continues to be very high.”

Fintel CEO David Chen adds: “We are targeting initially to acquire aircraft from Chinese airlines as they modernise their fleet and lease them to the international markets. Meanwhile we will continue with our portfolio investment in the Chinese private sector but with a stronger focus on cashflow and upside potential.”