Milbank successfully advised ICBC Financial Leasing (“ICBCFL”) on an acquisition from BBAM US LP of two Boeing 737-800 cargo aircraft on operating lease to China Postal Airlines Limited, which employs an innovative new “Tianjin Dongjiang FTZ SPV” structure.
The transaction marks the first cross-border portfolio sale of cargo aircraft into the Tianjin Dongjiang Free Trade Zone and is the first to use the “Dongjiang Model,” a new structure for the importation of domestic cargo aircraft. The new model allows direct leasing from a Dongjiang SPV lessor with the benefits of leasing from a Free Trade Zone in China and promotes the streamlining of the importation of cargo aircraft into China. This is an important step in the development of the domestic air cargo industry in China.
The Singapore-based Milbank team was led by Global Transportation and Space partner Paul Ng with associates Hui Ling Teo and Ed Bentley, law clerk Yixian Zhao and legal assistant Darryl Hew assisting.
“Milbank is thrilled to support ICBCFL on this pioneering development in air cargo solutions. With the explosive growth of China’s international and domestic air freight traffic as a result of the pandemic, the streamlining of importation and leasing of freight aircraft into and within China is an important development to easing the huge demand for air freight within China,” said Mr. Ng.
