TIANJIN, Sept. 3 (Xinhua) -- Major global aircraft engine lessor Rolls-Royce & Partners Finance (RRPF) on Thursday announced to set up a direct aero engine leasing entity in China as it seeks to cash in on the world's second-largest aviation market.
RRPF, a joint venture between British aircraft engine giant Rolls-Royce and U.S. firm GATX, signed a deal for its new China subsidiary with the Dongjiang Comprehensive Bonded Zone in north China's Tianjin Municipality on Thursday.
The direct leasing business, the first of its kind in China by leading global aircraft engine makers, marks a shift in how overseas aviation assets are managed in the country.
The new entity, backed by more than 2.3 billion yuan (about 339 million U.S. dollars) in total investment, will own and base engines domestically, breaking with the industry norm of keeping assets offshore while leasing them into China.
The new business can sharply reduce intermediate procedures and lower airlines' foreign exchange management and leasing costs, providing domestic aviation firms with more stable, predictable and high-quality engine leasing services.
"China is currently the world's second-largest aviation market. For the next 10 years, it's gonna grow," said Ben Hughes, RRPF's chief strategy officer. He added that the new entity would help lower customer expenses and that hiring local talent would support more efficient operations.
The Tianjin Dongjiang Comprehensive Bonded Zone is known as a hub for leasing activities and is the world's second-largest cluster for aircraft leasing. By the end of August, it had facilitated the leasing of more than 2,600 aircraft and over 300 aircraft engines, according to local officials. ■
