ICBC Financial Leasing Co., a subsidiary of Industrial and Commercial Bank of China (ICBC), signed a Memorandum of Understanding with CFM International to purchase CFM56-5B engines to power a new fleet of 22 firm Airbus A320 family aircraft. The firm engine order, which includes three spare engines, is potentially valued at more than $450 million U.S. at list price and the leasing company is scheduled to begin taking deliver in 2012. All of ICBC’s new engines will be the CFM56-5B Performance Improvement Package (PIP) configuration. The -5B PIP completed extensive ground testing and more than 26 hours of flight testing on the A320. The engine, which will become the new production standard, is on schedule for certification and entry into service by the end of 2011.
Defined as a first trial by China State Council, ICBC Financial Leasing Co. is the first banking financial leasing company approved by the China Banking Regulatory Commission. The company is fully owned by the Industrial and Commercial Bank of China and its current asset values approximately $12 billion U.S.
