SOURCE: IAE International Aero Engines AG

IAE International Aero Engines AG

February 15, 2012 12:57 ET

ICBC Leasing Orders V2500s for 15 Aircraft

The First Block Order From Domestic Lessor in China

GLASTONBURY, CT--(Marketwire - Feb 15, 2012) - Singapore Air Show -- ICBC Financial Leasing Co. Ltd, a subsidiary of the Industrial and Commercial Bank of China Ltd. (ICBC), has entered into an agreement under which International Aero Engines will provide V2500 engines to power its fleet of 15 new A320 series aircraft.

The deal is valued at $300 million. Deliveries commence in January 2013 and continue into 2015.

ICBC Leasing signed a purchase agreement with Airbus for 42 A320 family aircraft in June 2011, which marked the first direct order of aircraft from a domestic Chinese lessor with an aircraft manufacturer.

"As a market leader in China's financial leasing industry, ICBC Leasing is supported by the largest bank in the world and plans to be among the top lessors in the world within a few years," said Cong Lin, President of ICBC Leasing. "We are very glad to join hands with IAE to make a new breakthrough in the aviation market, and the excellent performance and great market success of V2500 engines will provide the best support to our plan."

"We believe the aircraft lessors such as ICBC Leasing are under fast development in China, helping to bring the next major market growth there," said IAE Executive Vice President of Customer Business Jim Guiliano. "ICBC Leasing's order will be the first block order V2500 purchase by a local lessor in China."

"IAE's overall presence in China includes a network of support systems and infrastructure that is unsurpassed," Guiliano continued. "We have 17 operators, 11 field offices, training and overhaul facilities and provide final assembly line support at the Airbus final assembly line facility in Tianjin."

Aircraft powered by the V2500s will be flown both domestically, as well as be placed in other parts of the world.

IAE is a multinational aero engine consortium whose shareholders comprise of Pratt & Whitney (NYSE: UTX), Rolls-Royce (RR.L.), Japanese Aero Engines Corporation and MTU Aero Engines. Through 2011, over 4,900 V2500 engines have been delivered and nearly 2000 more engines are on order with close to 200 customers around the world.

ICBC Leasing is a wholly owned subsidiary of Industrial and Commercial Bank of China. ICBC Leasing focuses on three business lines -- aviation, shipping and large-ticket equipment. ICBC Leasing has become a pioneer and market leader in the financial leasing industry since its inception in November 2007. With the strong cooperation of its business partners, ICBC Leasing forges ahead with a global vision to build on a market-oriented culture and to offer innovative, tailor-made solutions and professional services. ICBC Leasing owns and manages 72 modern aircraft and has 42 Airbus A320 family and 45 Comac C919 on order as of January 31, 2012.