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ICBC Leasing Supports Aviation Industry with Over RMB 100 Billion Financing
 

In recent years, ICBC has continued to support China's aviation industry by providing funding for the aviation industry, reducing operating costs and boosting the China's aircraft to go global. As of the end of March 2017, ICBC Leasing had acquired aircraft assets worth over RMB 110 billion, with over 540 aircraft under ownership and management. Its fleet value ranks the fifth in the world.

According to an official with ICBC Leasing, aircraft leasing is not only one of the major sources of aircraft for airlines, but also sells 1/3 of mainstream commercial aircraft in the world. However, the industry has long been dominated by foreign leasing companies. ICBC Leasing has been focused on supporting China's aviation industry since its establishment in 2007. It provides domestic airlines with new channels to import aircraft to reduce the cost and improve profitability; on the other hand, it supports the internationalization of China’s aircraft while providing strong financial support for China's aviation industry to go global through business innovation.

In growing aviation economy, ICBC Leasing and China Southern Airlines purchased two Boeing 777F cargo planes via the model of Chinese bonded leasing in December 2009, breaking foreign leasing companies' monopoly over Chinese aircraft leasing business, and creating a mainstream model for domestic airlines to introduce aircraft. ICBC Leasing has successfully extended its business to 64 airlines in 33 countries and territories around the world, and initially formed a worldwide business network. Its aircraft portfolio is one of the best in the world with a weighted average life of around 2.8 years, and remaining lease period of 8.4 years.

In supporting China's aircraft to go global and the "Belt and Road" initiative, ICBC Leasing and COMAC have signed purchase orders of 45 C919 and 30 ARJ21, making ICBC Leasing the largest single initiating user of domestic commercial aircraft. In November 2016, ICBC Leasing and COMAC jointly launched the Three-year Action Plan of Promoting the Development of China's Large Aircraft Development with Air Finance to accelerate market orientation and industrialization of China's passenger aircraft. Also, as of the end of 2016, ICBC Leasing conducted leasing business with a contract value of about USD 5.4 billion involving 74 aircraft in 11 countries along the "Belt and Road", which helped China's aviation economy go global while supporting the growth of local aviation industry.

In terms of aircraft leasing innovation, ICBC Leasing exported the A320 aircraft assembled by Airbus (Tianjin) Final Assembly Company using China's tax leasing structure for the first time in December 2012, representing the first export transaction of large aircraft finally assembled in China. In June 2015, ICBC Leasing successfully leased one A320 aircraft directly to the Himalayan Airlines headquartered in Nepal via the model of operating leasing, which was the first offshore leasing transaction in China and provided valuable experience for the offshore leasing business of free trade area. At the end of 2014, ICBC completed the first transaction of lease encumbered aircraft in China, which opened the aircraft asset circulation market in China, and drove the development of aircraft leasing asset trading market in China.


(2017-06-09)
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