Spectrum Capital and COMAC sign Collaboration Agreement

A delegation of nine senior representatives from the Commercial Aircraft Corporation of China, led by Mr Tian Min, Chief Financial Officer, visited the offices of Spectrum Capital London Ltd this morning to sign a Collaboration Agreement.

Mr Tian said that although the Farnborough Air Show is an extremely busy time, the importance of sealing the agreement with Spectrum Capital was of such importance, that this visit to Spectrum Capital’s offices in London’s Lombard Street, took precedence. The agreement covers the field of financial services and airline financing, especially relating to the sales of the COMAC C919, The signing coincided with the 28th anniversary of the founding of Spectrum, and marked a major milestone in the development of the relationship between the parties. Both Tian Min and John Sharman agreed that innovative financing was essential to the successful marketing of any aircraft in today’s harsh economic conditions, and especially to support the entry to the market place of a new, but highly competitive product such as the C919. This aircraft will be an alternative for airlines to the A320NEO and the 737Max, also now under development.

Spectrum’s signature of the Agreement is in recognition of the Chinese intention to become a global supplier of aircraft in the 150 pax category, representing both an enormous opportunity and requirement, which needs to be addressed by global financial markets. COMAC’s selection of Spectrum as partner in this field is a further reflection of COMAC’s structured approach to the global market place, supplementing their investment in Shanghai and Pudong Development Bank’s newly formed leasing subsidiary, and their consideration of forming their own sales financing company.

Sales of the C919, powered by CFM’s new LeapC advanced high by-pass turbofan, currently exceed 240 aircraft, with entry into airline service targeted for 2016. The aircraft attracted a formal signing of an MoU between COMAC and IAG at the Farnborough Air Show yesterday, inked in by Mr He Dongfeng and Mr Willie Walsh, the respective CEOs.

COMAC’s Agreement today with Spectrum Capital confirms Spectrum’s place amongst the world’s leaders in the field of financial advice and international aircraft sales financing.