Business Aviation
CDB Aviation Secures $710M Sustainability Linked Loan via Hong Kong
CDB Aviation obtains a $710 million sustainability-linked loan through its Hong Kong subsidiary, focusing on ESG targets and fleet modernization.

This article is based on an official press release from CDB Aviation.
CDB Aviation Secures $710 Million Sustainability-Linked Loan via Hong Kong Platform
DUBLIN, January 12, 2026, CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (CDB Leasing), has announced the execution of a significant new financing agreement. The lessor has secured a $710 million unsecured term loan facility structured as a Sustainability Linked Loan (SLL). This transaction marks a strategic expansion of the company’s Strategy platform, utilizing its Hong Kong subsidiary as the borrower for an SLL for the first time.
According to the company’s announcement, the facility has a five-year tenor and was executed on December 19, 2025. The deal underscores the aviation industry’s growing reliance on “transition finance,” where capital is tied directly to Environmental, Social, and Governance (ESG) performance metrics.
Transaction Structure and Banking Partners
The $710 million facility is anchored by a consortium of major financial institutions. The loan introduces CDB Aviation Hong Kong Limited as the primary borrower, a move designed to diversify the lessor’s funding sources beyond its traditional Irish headquarters. The transaction was supported by several key banking partners:
- Mandated Lead Arrangers and Bookrunners: Bank of China (Hong Kong) Limited and Industrial and Commercial Bank of China (Asia) Limited.
- Sustainability Agent and Structuring Advisor: Crédit Agricole Corporate and Investment Bank.
- Additional Lenders: Bank of Communications (Hong Kong and Sydney Branches), China CITIC Bank International, Ping An Bank, and CTBC Bank.
Jie Chen, CEO of CDB Aviation, emphasized the importance of this structural shift in the company’s press statement:
“This term loan marks a major milestone for our platform, with our Hong Kong entity being appointed as the borrower for the very first time to enter into an SLL to raise substantial funds from the market.”
— Jie Chen, CEO of CDB Aviation
Sustainability Performance Targets (SPTs)
As a Sustainability Linked Loan, the interest rate on the $710 million facility is directly tied to CDB Aviation’s ability to meet specific Key Performance Indicators (KPIs). According to the release, the loan terms incentivize the lessor to achieve three primary goals:
- Reducing Carbon Intensity: The company must demonstrate a reduction in the carbon intensity of its fleet, prioritizing the placement of the most fuel-efficient aircraft.
- Fleet Modernization: A key metric involves increasing the proportion of new-generation aircraft within the fleet. Previous company reports have indicated a target to reach 60% new-generation aircraft by the 2025/2026 timeframe.
- Workforce Development: On the social front, the loan requires an increase in Diversity, Equity, and Inclusion (DEI) related Training for the workforce.
Meeting these targets typically results in a lower cost of borrowing, aligning the company’s financial incentives with its environmental commitments.
Strategic Context and Market Position
This transaction represents the latest step in CDB Aviation’s aggressive adoption of sustainable finance. The company has established a track record of utilizing SLLs to fund its fleet transition:
- 2023: The lessor closed its inaugural $625 million syndicated SLL.
- 2024: The company secured a $700 million SLL collateralized by aircraft assets.
- 2026: The current $710 million unsecured facility reinforces the company’s investment-grade standing (Moody’s A2, S&P A, Fitch A+).
In the official release, CEO Jie Chen noted that the transaction reflects strong market support:
“Our continued success in attracting top-tier financiers reinforces our position as a premier global lessor… and showcases the market’s confidence in our long-term strategy.”
— Jie Chen, CEO of CDB Aviation
AirPro News Analysis
We observe that the decision to utilize the Hong Kong entity as the borrower is not merely administrative; it is a strategic pivot to tap into deep Asian liquidity pools while maintaining a global footprint. By diversifying its borrowing entities, CDB Aviation mitigates geographic risk and broadens its access to capital.
Furthermore, the inclusion of a “Social” KPI regarding DEI training, alongside standard environmental metrics, signals a maturing of the SLL market in aviation. Lenders are increasingly looking for holistic ESG strategies rather than purely carbon-focused metrics. As the industry faces pressure to decarbonize, we expect investment-grade lessors to continue leveraging their balance sheets to secure favorable terms through similar transition finance instruments.
Sources
Photo Credit: CDB Aviation
Business Aviation
Desert Jet Breaks Ground on Ramp Extension at KTRM
Desert Jet begins ramp expansion at Jacqueline Cochran Regional Airport, with two new hangars planned to follow by end of 2026.

Desert Jet has commenced construction on a ramp extension at its Fixed Base Operator (FBO) facility at Jacqueline Cochran Regional Airport (KTRM) in Thermal, California, marking the first phase of a broader infrastructure expansion.
Announced in an October 14 press release, the project is scheduled to enter service by the end of 2026 to accommodate increasing business aviation traffic in the Coachella Valley. The ramp extension will precede the planned construction of two additional hangars at the site.
Phased infrastructure development
The ramp extension is designed to provide additional operational space for aircraft maneuvering and parking at the Desert Jet Center. Once the ramp project concludes at the end of 2026, the company plans to begin construction on two new hangars to further increase its capacity.
Desert Jet Chief Executive Officer Jared Fox stated that the groundbreaking represents a milestone for both the company and the continued growth of the airport.
“We’ve made a significant commitment to this airport because we believe strongly in its future and its growing importance to business aviation and the Coachella Valley,” Fox said. “This expansion is another step in our long-term vision to develop world-class aviation facilities that support our customers, attract new business, and contribute to the region’s economic growth.”
Desert Jet footprint and regional context
The current expansion builds upon Desert Jet’s existing 32,500-square-foot FBO terminal and hangar facility at KTRM, which was completed in late 2019 after the company transitioned from temporary facilities. The FBO serves as a primary gateway for general aviation traffic entering the Coachella Valley, including the cities of Palm Springs, La Quinta, and Indio.
Desert Jet operates three core divisions from its California headquarters: Desert Jet Charter, the Desert Jet Center FBO, and Desert Jet Maintenance, which operates as a Federal Aviation Administration (FAA) Part 145 Repair Station. The company is the Corporate Aircraft Association (CAA) and Citation Jet Pilots (CJP) Preferred FBO at the airport, where it competes for business aviation traffic alongside other providers, including Atlantic Aviation and Thermal Self-Serve.
Beyond its California operations, Desert Jet manages two 28,800-square-foot hangars at Yampa Valley Regional Airport (KHDN) in Hayden, Colorado. The company was founded in 2007 and subsequently acquired by James McCool in 2020.
Photo Credit: Desert Jet
Business Aviation
EASA Validates HondaJet APMG-S Upgrade Package for Europe
EASA approved the HondaJet APMG-S retrofit package on Oct 15, 2026, adding 300 lbs MTOW and new avionics to legacy aircraft.

The European Union Aviation Safety Agency (EASA) has granted type validation for the HondaJet APMG-S upgrade package, clearing the way for European owners of legacy HondaJet Classic and APMG aircraft to retrofit their airframes with modern performance and avionics enhancements.
Announced by Honda Aircraft Company in a press release on October 15, 2026, the regulatory approval expands the addressable market for the manufacturer’s retrofit program. The validation establishes a standardized upgrade path for the European preowned market, allowing operators to bring older airframes closer to the specifications of current production models.
Performance and avionics enhancements
The APMG-S (Advanced Performance Modification Group – S) package was developed to integrate features from later variants, such as the HondaJet Elite S, into the existing fleet. A primary component of the upgrade is a 300-pound (136-kilogram) increase in Maximum Takeoff Weight (MTOW), which provides operators with greater payload capacity or extended range flexibility.
The retrofit also introduces the Advanced Steering Augmentation System (ASAS). This system is designed to improve crosswind capability and overall ground handling during the takeoff and landing phases. On the flight deck, the package includes faster avionics processing hardware and software, alongside new Graphical Weight and Balance functionality to streamline preflight calculations for flight crews.
“At Honda Aircraft Company, we are deeply committed to continuously enhancing value by bringing meaningful innovation to customers throughout their ownership journey,” said Amod Kelkar, Senior Vice President and Chief Commercial Officer at Honda Aircraft Company. “We are pleased to make these enhancements available to more customers across Europe and to continue supporting the success of the global HondaJet community.”
Expanding the global retrofit market
The EASA validation marks the third major regulatory approval for the APMG-S program. Honda Aircraft Company initially introduced the package in December 2025 alongside its Federal Aviation Administration (FAA) certification for United States-registered aircraft. Mexico’s Federal Civil Aviation Agency (AFAC) followed with its own certification in May 2026.
For European operators, physical installations of the APMG-S package will be conducted by Rheinland Air Service, an authorized HondaJet dealer based in Germany. North American customers continue to be served by the Honda Aircraft Company Service Center at the manufacturer’s headquarters in Greensboro, North Carolina.
The certification directly impacts the preowned aircraft market by allowing buyers to purchase older airframes and retrofit them to near-current specifications, or to purchase pre-modified aircraft directly. The company noted that additional international validation applications for the APMG-S package are currently under review by other regional regulators and will be announced as they are achieved.
Two decades of HondaJet development
The European expansion of the APMG-S program arrives during a milestone year for Honda Aircraft Company, a wholly owned subsidiary of American Honda Motor Co., Inc. Founded in 2006, the manufacturer celebrated its 20th anniversary of aviation operations in August 2026. During those commemorative events, the company highlighted that the global HondaJet fleet had surpassed 250 total deliveries in 2024.
While supporting the legacy fleet through retrofit programs, the manufacturer is simultaneously advancing its next-generation aircraft. On September 15, 2026, Honda Aircraft Company announced the completion of the first wing structure for the HondaJet Echelon test unit. The Echelon, a new light jet program designed to offer transcontinental range, is currently progressing toward mainline final assembly in Greensboro.
AirPro News analysis
We view the APMG-S program as a strategic lever for Honda Aircraft Company to stabilize residual values and maintain brand loyalty within the preowned market. By offering a certified pathway to retrofit legacy airframes with Elite S-class capabilities, the manufacturer prevents its earliest models from becoming technologically obsolete. This EASA validation is particularly critical for the European market, where airspace density and operational constraints often demand the latest avionics and handling capabilities. Standardizing the global fleet also simplifies long-term MRO and parts support for the Greensboro-based manufacturer.
Photo Credit: HondaJet
Business Aviation
Textron Aviation Certifies Gogo Galileo HDX on Citation Jets
Textron Aviation earns FAA certification for Gogo Galileo HDX on Citation Longitude and Latitude, offering free factory install from 2028.

Textron Aviation has secured Federal Aviation Administration (FAA) certification for the Gogo Galileo HDX connectivity system on its Cessna Citation Longitude and Cessna Citation Latitude business jets. The approval makes the Wichita-based manufacturer the first original equipment manufacturer (OEM) to offer the low-earth-orbit (LEO) solution as a standard factory option.
In a press release issued October 15, 2026, Textron Aviation confirmed it will provide the Eutelsat OneWeb-powered system as a no-charge installation on factory-new aircraft starting in 2028. The move is designed to lower the upfront financial barrier for operators seeking high-speed global internet access.
Factory integration and service rollout
Customers selecting the Gogo Galileo HDX system will receive a guaranteed preferred worldwide service rate for three years. The integration targets operators who require reliable, high-bandwidth connections for video conferencing and streaming during flight, capabilities that have become standard expectations in the business aviation market.
“Achieving FAA certification of Gogo Galileo HDX on the Citation Longitude and Citation Latitude is the result of a strong effort across our teams and gives customers another factory-supported connectivity option to keep them connected wherever their missions take them,” said Chris Hearne, Senior Vice President of Engineering & Programs at Textron Aviation.
Hearne noted that operators rely on these systems to stay productive and require solutions that perform reliably worldwide. Gogo Chief Executive Officer Christopher Moore highlighted the partnership, stating the company is pleased that new Citation owners will benefit from the connectivity system to maintain their online presence in the sky.
Aircraft capabilities and market context
The certification applies to two of Textron’s prominent business jets. The Cessna Citation Longitude, the manufacturer’s flagship super-midsize aircraft certified in September 2019, features a maximum range of 3,500 nautical miles and seats up to 12 passengers. The midsize Cessna Citation Latitude, which entered service in 2015, offers a 2,700-nautical-mile range with capacity for nine passengers.
The Gogo Galileo HDX system utilizes an electronically steered antenna (ESA) mounted on the fuselage. It connects to Eutelsat’s OneWeb LEO satellite network to provide maximum download speeds of 60 Mbps. The compact design is specifically engineered for easier installation on business aircraft.
Demand for LEO connectivity upgrades is accelerating across the business aviation sector. On October 16, 2026, maintenance, repair, and overhaul (MRO) provider Duncan Aviation announced it had purchased multiple Gogo Galileo HDX systems to meet growing customer installation schedules. Earlier in the year, on July 1, 2026, Gogo confirmed that Gulfstream Aerospace received an FAA Supplemental Type Certificate (STC) to install the same system on Gulfstream G650 and G650ER aircraft.
AirPro News analysis
By offering the Gogo Galileo HDX installation at no charge for factory-new deliveries, Textron Aviation is shifting the competitive landscape in the midsize and super-midsize business jet markets. Satellite connectivity has historically required substantial upfront equipment and installation capital. Absorbing this initial cost allows Textron to use terrestrial-like internet access as a primary sales differentiator rather than a premium add-on. We expect this pricing strategy will pressure competing OEMs to standardize their own high-speed connectivity offerings to meet baseline buyer expectations.
Photo Credit: Textron Aviation
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