The aircraft leasing marks the first-ever long-haul flight using biofuel for AirFrance, Total and Airbus
Milbank has successfully advised ICBC Leasing (“ICBCFL”) in connection with its operating leases of two new model aircraft to Air France. ICBCFL is the world’s seventh-largest aircraft lessor by fleet size and the largest aircraft lessor from China. Amongst the aircraft leased was a new A350 aircraft operated by Air France, fueled by a high-quality sustainable aviation fuel (SAF) and capable of consuming less fuel than its predecessor.
On May 18, the aircraft successfully performed the first-ever long-haul flight from France’s Paris-Charles de Gaulle airport to Canada with its tanks filled for the first time with SAF produced in Total’s French plants. The Air France-KLM group is a pioneer in testing sustainable aviation fuels. KLM made its first SAF-powered short-haul flight in 2009. This long-haul flight is well ahead of the European Green Deal target of using at least 5% SAF for all flights originating in Europe by 2030 and an important step in decarbonizing air transportation and furthering the sustainability of air travel for the future.
“This transaction is notable for a number of reasons,” said Singapore Transportation and Aviation partner Paul Ng, who led the Milbank team on the deal. “It is clear that the aviation market is evolving with greater emphasis on ESG where aircraft manufacturing, alternative fuel development and airport technology are now very focused on sustainability and in particular the reduction of air travel emissions,” said Mr. Ng. “It is also notable that the leases were negotiated during the height of the COVID-19 pandemic at arguably the peak of the depressed global aviation market and the investment by a lessor of the size and stature of ICBCFL signals the increasingly important role played by Chinese lessors.”
Mr. Ng was supported on the transaction by associates Hui Ling Teo and Ed Bentley, and Zhao Yixian.
