First Cross-Border Bonded and Sub-Leased Aircraft Delivered in Guangdong Free Trade Zone

03 07, 2018      Source: Southern News Net

On the morning of March 2nd, an Airbus A321 NEO aircraft was successfully delivered in Guangzhou. This is the first cross-border bonded and sub-leased aircraft in Guangdong Free Trade Zone, and is also the first new aircraft introduced from abroad by SPV Company, affiliated to China Southern Airlines Co., Ltd. (hereinafter referred to as “China Southern Airlines”).

Nansha Free Trade Zone is accelerating its efforts in the construction of financial leasing clusters, and strongly supports the innovation of financial leasing policies, services, and business models. At present, 38 leased aircraft have been introduced and landed, successively bringing into several innovative transactions including the first asset package cross-border transfer, cross-border leasing, bonded import leasing, offshore leasing, joint leasing, export leasing in Guangdong Free Trade Zone

Cross-border bonded and sub-leased aircraft refers to those aircraft which are sub-leased to domestic airlines by SPV companies, after SPV companies in the bonded area purchase and operate leased aircrafts from overseas leasing companies. The airline company purchased this A321NEO aircraft in the manner of cross-border bonded sublease through its own SPV established in Nansha, significantly reducing airline lease costs compared to the manner of renting aircraft directly from leasers in Ireland or Singapore. At the same time, this leasing model combines the advantages of overseas direct leasing and bonded leasing. The scope of application is significantly greater than that of the lessor SPV structure, which would greatly facilitate the business and operation of the airline company.