Posted on: 17 November 2010 by Ross McSweeny
Embraer and China’s AVIC Leasing have announced a Memorandum of Understanding on aircraft financing and leasing, the value of which could reach as much as $1.5 billion over the next five years.
AVIC Leasing is a professional lease financing company owned by Aviation Industry Corporation of China (AVIC). It is one of the first domestic leasing companies approved by the Ministry of Commerce, People’s Republic of China, and the only one with aviation background in the country. Currently, the company owns leasing assets of more than $1.2 billion, with a fleet of 62 aircraft. The agreement is designed to create financing opportunities for selling Embraer aircraft to the Chinese and international markets, focusing on the development of regional and executive aviation in China.
“We are proud to sign this memorandum with AVIC Leasing, one of Embraer’s most important partners in China and a company renowned for its expertise and professionalism,” remarked Paulo César de Souza e Silva, Embraer executive vice-president, airline market. “The deal also indicates strong recognition and confidence in Embraer and its products and services from the financial community.”
“This strategic alliance marks significant advancement in the co-operation between Embraer and AVIC Leasing,” commented Zhao Hongwei, president of AVIC Leasing. “We believe this strategic partnership will bring a new outlook and a fresh start for the international aviation financing industry.”