Minsheng Financial Leasing: Ordering aircraft
Minsheng Financial Leasing firmly believes that the Chinese corporate aircraft market will grow quickly. Zhou Wei, the leasing company’s president, forecasts that there will be more than 800 business jets by 2020 – up from just 46 aircraft at the end of 2009. He estimates that 70% of these aircraft will require financing, and Minsheng wants to be involved in this growth.
The bank has formed a specialist group to focus purely on business jets and also offers consultancy. “We offer clients a one-stop shop. Most of our customers are not aviation specialists so we also provide expert advice.” Unlike ICBC Leasing, which is a major international commercial aircraft leasing company, Minsheng is only offering business jet finance.
Minsheng expects to finance 15 aircraft in 2010. It has signed contracts for 17 aircraft — Gulfstream 450s, Gulfstream 550s and Bombardier Challengers — through its own orders with manufacturers and sale/leasebacks with customers who ordered directly.
Wei says that the leasing company is working with the CDRC to lower import tariffs. It is based in the Tianjin development zone so benefits from lower taxes. At the moment the company is focusing on corporate aircraft but it is considering financing helicopters in the future.