Home  Contact Us
  Follow Us On:
Advertising Advertising Free Newsletter Free E-Newsletter

Airbus signs financing pact with Chinese partner
Published on: 2010-01-27
Share to
User Rating: / 0


PARIS—Airbus said Tuesday it has signed a memorandum of understanding with China-based CDB Leasing Co. to cooperate on aircraft leasing and financing projects for Airbus's airline customers.

CDB Leasing will provide up to $4 billion over the next five years in financing for airlines buying Airbus aircraft through sale and lease back transactions, said Airbus, a unit of European Aeronautic Defense & Space Co.

The unwillingness of banks to take on new risk has meant that some financially fragile airlines have been forced to delay taking delivery of aircraft they have ordered because they haven't been able to raise the necessary financing for their final delivery payments.

Others have had to scrap plans to order new jets because they can't find the cash to put up predelivery payments, or deposits, that can be around 15% of the total value of an aircraft.

By making available financing to Airbus customers world-wide, CDB Leasing will help to ease these log jams in coming years. CDB Leasing is a nonbank financing arm of China Development Bank, and is the largest financial-leasing company in China in terms of registered capital and total assets.

CDB Leasing will provide financing for all types of Airbus aircraft that come off its three assembly sites in France, Germany and China, and will also fund purchases of used Airbus aircraft. It can also help finance the cost of transforming passenger jets into freighters.

Airbus said CDB Leasing also is considering purchasing a certain number of aircraft directly from Airbus to lease to airlines. To date, CDB Leasing has handled financing arrangements for 51 Airbus jets.

Comments (0)Add Comment

Write comment

security code
Write the displayed characters

    Subscription    |     Advertising    |     Contact Us    |
Address: Magnetic Plaza, Building A4, 6th Floor, Binshui Xi Dao.
Nankai District. 300381 TIANJIN. PR CHINA
Tel: +86 22 23917700
E-mail: webmaster@businesstianjin.com
Copyright 2024 BusinessTianjin.com. All rights reserved.