Draft law to support aero-leasing industry
By Xin Dingding (China Daily)
Updated: 2006-09-21 14:02
Almost all leased airplanes in China's civil aviation sector are leased from
foreign financial leasing companies.
As China's civil aviation sector is expanding fast, the aero-leasing market
is expected to be worth at least US$108 billion by the year 2024, by which time
China is estimated to add 2,300 more airplanes.
However, this market seems to be out of reach of the 12 domestic financial
leasing companies.
"Foreign companies in the field either have a banking background that enables
them to get capital at a low cost, or an aircraft manufacturing background that
enables them to acquire airplanes at a lower cost," said Wang Yixin, a senior
manager with the Industrial & Commercial Bank of China.
With no background in either fields, "domestic financial leasing companies
are now confronted with the same problem how to acquire capital at a low cost,"
said Wang Renfeng, deputy general manager of Shenzhen Financial Leasing Company.
Wu Xiao, deputy director general of the transportation department of the
National Development and Reform Commission, suggested setting up large financial
leasing companies supported by financial institutions.
As a move to support the domestic financial leasing industry, "the civil
aviation authorities are drafting a regulation on managing the purchase and
acquisition of aircraft," he said at the summit, without revealing any more
details.
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