ICBC Leasing leases three Airbus A320 aircraft to AirAsia

Around September 2012, ICBC Financial Leasing Co., Ltd. (ICBC Leasing) entered into an operating lease agreement with Capital A Berhad (AirAsia), a Malaysian low-cost airline, for three narrow-body Airbus A320 aircraft. The lease had a term of 12 years and was to start in the fourth quarter of 2012. The first aircraft was assembled in Tianjin, China by Airbus (Tianjin) Final Assembly Co., Ltd. and was successfully delivered to AirAsia in December 2012.

Additional details

1. A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments. Under a capital lease (a financial arrangement where the lessee/borrower uses an asset and pays regular installments plus interest to the lender/lessor), rental payments are usually classified as interest and obligation payments, similarly to a mortgage (with the interest calculated each rental period on the outstanding obligation balance). AidData codes capital leases as loans.

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