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Operation China
01 June 2005
Avoid the pitfalls of operating leasing in China with Adam Law and William Ho's essential guide to the regulations.
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Adam Law
William Ho
Allen & Overy
operating lease
Aviation
asset finance
As the number of aircraft on operating leases in China has increased significantly over the past five years, it is no wonder that the major players in operating leasing are focusing heavily on China.
However, for those operating lessors who have not yet leased into China, there are many issues to consider, which apply for leasing to the more established and recently consolidated "big three" (Air China, China Southern or China Eastern), a provincial airline (such as Shanghai Airlines and Sichuan Airlines), or a new private start-up entrant (such as Okay, Spring Airlines and United Eagle).
Government approvals
A Chinese operator must obtain various government approvals before it may begin operating an aircraft under lease. These include:
- State Development and Reform Commission (SDRC) approval: SDRC approval is required for an operating lease with a lease term exceeding one year. This may not be available at the time of signature...
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