Brazilian planemaker Embraer has signed a Memorandum of Understanding (MoU) for the financing and leasing of aircraft in China.
The deal, penned with China’s ICBC Financial Leasing, is intended to create financing opportunities for the sale of Embraer’s commercial jets in China and other markets. Embraer said the deal could be worth up to US$2.5 billion over the next five years.
Aircraft leasing company ICBC launched in 2007 and now has a fleet of more than 70 jets.
“Embraer forecasts a demand of 430 commercial jets up to 120-seat and 635 executive jets in China during the next 10 years,” said Paulo Cesar Silva, President of Embraer Commercial Aviation. “The cooperation with ICBC Leasing reinforces the recognition from Chinese leasing companies of Embraer’s leading presence in the regional aviation and growing strength in executive aviation.”
Since its entry into China market in 2000, Embraer has received 153 firm orders for its commercial and executive jets from Chinese customers, with more than 110 aircraft delivered and in service. The company accounts for around 76% of the total Chinese market for aircraft with fewer than 120 seats.