Embraer Inks Aircraft Financing MoU with China’s ICBC
Embraer and Beijing-based ICBC Financial Leasing signed a memorandum of understanding (MoU) today on aircraft financing and leasing for the sale of Embraer airliners and business jets in China and other markets. Under the MoU, total program support could amount to as much as $2.5 billion over the next five years.
“The rapid development of the Chinese economy has resulted in high growth rates for regional and executive aviation, making it one of the greatest potential markets in the world,” said Embraer Commercial Aviation president Paulo Cesar Silva. “Embraer forecasts demand for 430 commercial jets with up to 120 seats and 635 executive jets in China during the next 10 years.”
Since its entry into the Chinese market in 2000, Embraer has received firm orders for 153 airliners and business jets from Chinese customers. More than 110 of those aircraft have been delivered and are in service.
ICBC Financial Leasing started doing business in 2007 as a wholly owned subsidiary of Industrial and Commercial Bank of China. The leasing company, which has total assets exceeding $15.87 billion, currently has more than 70 jets in its aircraft fleet portfolio and plans to have more than 250 by 2014.