Airbus today signed a Memorandum of Understanding with the Industrial and Commercial Bank of China (ICBC), one of China's leading banks, on cooperation in aircraft financing and leasing. The MoU was signed by John Leahy, Airbus Chief Operating Officer Customer Affairs and Li Xiaopeng, Vice President of ICBC and Chairman of ICBC Financial Leasing Co. Ltd. (ICBC Leasing), the wholly-owned subsidiary of ICBC, based in Tianjin. Airbus and ICBC endeavour to share competence and experience 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.
Under the MoU, ICBC Leasing will provide aircraft delivery financing solutions to airlines domiciled in the People's Republic of China for the acquisition of aircraft ordered from Airbus. ICBC Leasing could provide financing solutions for up to 70 A320 Airbus aircraft assembled at Final Assembly Line China (FALC) over the next five years. The total value of the financing support will be over 20 billion RMB (some US$3 billion). The financing solutions such as purchase and lease back transactions will be provided directly to Chinese airlines.
Furthermore, ICBC Leasing shall also consider offering these services for aircraft delivered by Airbus from other Final Assembly Lines around the world. Finally, ICBC Leasing shall consider purchasing a certain number of aircraft directly from Airbus for future leasing needs of airlines.
"We are proud to provide financing solutions for customers taking deliveries of aircraft assembled at FALC. Our objective is to support the whole aeronautic community in China; the airlines when enabling them to acquire Airbus aircraft as well as FALC to ensure its smooth ramp up," said Jiang Jianqing, Chairman of
"In the current economic environment, aircraft financing remains very challenging. But aircraft remain very attractive investments. Our modern portfolio of aircraft is delivering an excellent return on investment and an outstanding value for money to our customers," said Tom Enders, Airbus President and CEO. "The timely financing support from ICBC Leasing will surely help Chinese airlines to take deliveries of their new Airbus aircraft and enhance their competitiveness."
ICBC is one of the leading banks in China with wide networks across the country and in the world. ICBC Financial Leasing CO., Ltd. ("ICBC Leasing) is 100 percent owned by ICBC, set up in November 2007.
Airbus is a leading aircraft manufacturer offering three highly successful families of aircraft, ranging from 107 to 525 seats, the most modern, comprehensive and eco-efficient product line on the market. Headquartered in Toulouse, France, Airbus is an EADS company.