CDB Aviation seeks growth as it confirms order for Boeing jets

China’s CDB Aviation Lease Finance may place further jet orders and make selective acquisitions as it expands globally after announcing an order for 30 Boeing airliners.

Confirming a Reuters report, the Ireland- based arm of China Development Bank identified itself as the buyer for 30 Boeing Co 737 MAX 8 aircraft.

It was the first such announcement since leasing veteran Peter Chang became chief executive in December.

“Our model is very clear: We will become a global leasing platform, which means international, including non- Chinese and Chinese [ activities],” Chang told Reuters.

The order comes as Boeing and Airbus face a slowdown in the business cycle. Several airlines may postpone jet deliveries due to economic concerns.

“To a certain extent [ the slowdown] has already started, and it is good for us as a long- term play- er. It could very well mean that it is an opportunity for us to place another order,” Chang said.

“We do not want to be aggressively big for the sake of it, but we are aggressive and we are going to grow,” he added.

“We will be looking at $ 3 billion to $ 4 billion a year growth ... not to the point of being too risky, but we will have a basic skyline [ sequence of deliveries] from manufacturers and we will have a healthy order book,” he said.

“We will have a small budget for pop- ups, and that is flexible,” he added, using a term for aircraft that become available when original buyers retreat.

“We are long- term players. Our investors don’t have a sixyear exit strategy. We are not going to sell up our aviation portfolio and start renting bicycles. We are going back to the oldfashioned way of working with airlines, rather than trading aircraft,” Chang noted.