As of 31 March 2016, the Group operates a fleet of 594 aircraft, among which 181 aircraft are from finance leases and 173 aircraft are from operating leases.

The percentage of aircraft from operating leases will be adjusted according to the Company’s financial status, financing rates and operating lease rates. We have seen an increase in the percentage of operating leases year after year and it has become one of the most important channels through which to introduce aircraft. The Company will continue to introduce aircraft through this channel.

The impact on the Company’s debt structure, the residual value of aircraft and other expenditures are main factors for the Company to determine whether aircraft are owned through finance leases or operating leases.