OREANDA-NEWS. April 04, 2013. ICBC Leasing, a wholly-owned subsidiary of ICBC, has recently arranged a financial lease of an Airbus A380 aircraft for China Southern Airlines, said in a statement of ICBC. This is the first lease in China concluded for the financing of A380 aircraft, also a successful attempt of ICBC Leasing in providing leasing service for super large jets.

This Airbus A380 aircraft leased by ICBC Leasing is one of the most advanced passenger jets with the largest passenger capacity currently in use around the world. An A380 aircraft can carry up to 853 passengers. ICBC Leasing started discussion with China Southern Airlines since mid-2012 on financing an A380 aircraft for the airline. The conclusion was to arrange the lease at Dongjiang Free Trade Port Zone of Tianjin, an aircraft leasing service center in China. As agreed between the two parties, with a company set up in Dongjiang Free Trade Port Zone of Tianjin to arrange the lease, ICBC Leasing will act as the lessor to rent out the aircraft to China Southern Airlines. Under this arrangement, China Southern Airlines can reduce the cost significantly since customs import tax and value-added tax can be paid through rental installments.

In the past five years, ICBC Leasing has achieved good progress in offering leasing services to overseas airlines besides building up a brand in China as well, an executive with the Bank said. As of today, ICBC Leasing has about 20 overseas customers in Asia Pacific, Europe, Middle East and South America. Moreover, ICBC International Leasing Company, a leasing arm of ICBC in Ireland, is offering leasing services for a number of overseas mainstream airline companies: Singapore Airlines, Emirates Airlines, British Airways, Aeroflot Russian Airlines, TAM Airlines and South African Airways. So far, ICBC has delivered nearly 100 planes of different types - trunk aircraft (narrow-body, wide-body), feeder aircraft, business jet, cargo plane. Many new services are also provided such as aircraft leasing services in China’s bonded area, procurement of aircraft in batch, aircraft asset package, and leasing for aircraft modification.