Airbus signs aircraft financing and leasing deal in China

Airline Industry Information, June 23, 2009

AIRLINE INDUSTRY INFORMATION-(C)1997-2009 M2 COMMUNICATIONS

European aircraft maker Airbus said on Monday that it has signed a Memorandum of Understanding in China for cooperation in aircraft financing and leasing.

Airbus and the Industrial and Commercial Bank of China (ICBC) intend to cooperate on aircraft financing and management activities, including structuring of operating and finance lease transactions as well as portfolio management and aircraft placement remarketing.

A subsidiary of the bank, ICBC Financial Leasing Co Ltd (ICBC Leasing), will provide aircraft delivery financing solutions to Chinese airlines buying aircraft from Airbus.

The total value of the financing support will be over CNY20bn (approximately USD3bn), Airbus said.

Under the agreement ICBC Leasing could provide financing solutions for up to 70 Airbus A320 aircraft assembled at the manufacturer's Chinese facility over the next five years. In addition ICBC Leasing will consider offering these services for aircraft delivered by Airbus from other final assembly lines around the world. It will also consider purchasing some aircraft directly from Airbus for leasing to airlines.

(USD1=CNY6.8)

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