Shanghai FTZ sees first aircraft finance leasing business

The Bank of Communications Financial Leasing Co., Ltd. on Wednesday confirmed that it has leased one Boeing-737 aircraft to an express company in the Shanghai free trade area (FTZ).

The deal marked the first jet leasing business in the China (Shanghai) Pilot FTZ, according to the Bank of Communications Financial Leasing Co., Ltd., to date the only financial leasing company approved to set up a branch in the FTZ.

The Boeing-737 aircraft was leased to the Yangtze River Express, which is affiliated with Hainan Airlines Group.

"We have also signed an intentional cooperation agreement with Air China to lease two Boeing-777 aircraft. That will be the first aircraft operating leasing business realized in the FTZ," said Chen Min, chairman with the Bank of Communications Financial Leasing Co., Ltd.

The company is planning to extend its scope of business in the FTZ to cover both aircraft and ship chartering.

The Chinese government officially opened the 29-square-km Shanghai FTZ on Sept. 29.

Convertible yuan testing, wider opening of 18 service sectors, and a "negative list" approach in governing foreign investment are among the steps expected to unleash economic potential in the zone in the coming two to three years.