Spring says time is right for leasing

Spring Airlines Co, China's first low-cost carrier, plans to start an aircraft-leasing business to reduce costs and increase usage of its fleet as travel demand rises.

The carrier is registering the business in China (Shanghai) Pilot Free Trade Zone to take advantage of lower tax rates, and regulatory approval may come as soon as year-end, said Tian Chao, Spring's finance manager, in Hong Kong on Tuesday.

The leasing company will be a separate entity managing Spring's fleet, and will later also lease aircraft to other carriers, he said.