Almost all leased airplanes in China's civil aviation sector are leased from foreign financial leasing companies.

As China's civil aviation sector is expanding fast, the aero-leasing market is expected to be worth at least US$108 billion by the year 2024, by which time China is estimated to add 2,300 more airplanes.

However, this market seems to be out of reach of the 12 domestic financial leasing companies.

"Foreign companies in the field either have a banking background that enables them to get capital at a low cost, or an aircraft manufacturing background that enables them to acquire airplanes at a lower cost," said Wang Yixin, a senior manager with the Industrial & Commercial Bank of China.

With no background in either fields, "domestic financial leasing companies are now confronted with the same problem how to acquire capital at a low cost," said Wang Renfeng, deputy general manager of Shenzhen Financial Leasing Company.

Wu Xiao, deputy director general of the transportation department of the National Development and Reform Commission, suggested setting up large financial leasing companies supported by financial institutions.

As a move to support the domestic financial leasing industry, "the civil aviation authorities are drafting a regulation on managing the purchase and acquisition of aircraft," he said at the summit, without revealing any more details.

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