Staff members of Zhucheng Customs inspect the aviation engine. [Photo/Zhongwang News]
A brand-new engine for the A320neo airplane passed customs clearance in the Guiyang Free Trade Zone on Dec 22, making this the first aviation bonded finance lease to close in Southwest China's Guizhou province.
An aviation bonded finance lease is when a lessor purchases aircraft or aviation equipment and then leases the aircraft or equipment to the lessee for a certain time period. Finance leases can reduce financial pressure and enhance competitiveness for airlines. It is also a new method for airlines to introduce new aircraft models and expand their business scale.
The engine for the A320neo is worth $16 million, and was purchased by Agricultural Bank of China Financial Leasing Co, and is leased to Colorful Guizhou Airlines for 10 years.
Guiyang FTZ will build from this experience and will seek more projects related to aircraft, aviation engines, flight simulators, airport facilities, and aviation equipment. It will also explore new business models such as transitioning from passenger aircraft to freight aircraft, bonded aircraft maintenance, and multimodal transportation.