Jetrader - Summer 2018 - 42

buy aircraft; we can do sale leasebacks. All
this is within the procedure, which is well
documented, that's within CDB Aviation
itself. There's no approval other than that
we go through our own process. We have
our investment committees; we have our
subcommittee on the equivalence of transaction approval on the board level, and our
ultimate governance comes from the board
of CDB Aviation.
Now, our financial relationship with our
parent is a very unique one. We rely heavily, or entirely, on the guarantee from our

mothership, and in those cases of course
we go through the process of requesting
additional funds.
But otherwise, in terms of day-to-day
operations we're very pleased. And I consider that one of our more important accomplishments between our shareholders and
ourselves this year.
JM: I think currently over 50 percent of
your fleet is in China, but you're becoming global, and yet the growth in aviation
is clearly going to be heavily in China for

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VOLUME MATTERS

JM: Outside of Asia, I'm not sure if
CDB has any aircraft in North America,
which is surprising. Obviously it's a
very profitable part of the world at the
moment. Outside of Asia, do you see
[North America] as one of the big growth
areas for you?
PC: Well, we competed in several big
projects there, and we are anxious to
do something with the North American
airlines; I hope we do something very
soon, and we are close. We have a very
robust American team, and we have new
members who are excellent people who are
soon to join. So we're still in the takeoff
stage for the America team, but we'll be
there soon.

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JM: If we go back slightly to funding,
most people at the moment in this competitive market talk about how essentially it's the liability side of the balance
sheet that matters, and the lowest cost
of funds is needed to be able to compete.
How do you fund yourself, and [how] do

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42 The official publication of the International Society of Transport Aircraft Trading
10/10/17

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the next 20 years. How are you balancing the desire for a global presence with
having a presence and an angle into the
Chinese market?
PC: Our mothership is singularly the biggest lender to all the Chinese airlines - not
to mention the CDB Bank infrastructure
part of it that has helped out in terms
of municipal levels, and provinces and so
on, where most of the Chinese airlines are
related in pedigree in one form or another
to provinces and municipalities. So our
relationship from a CDB family tree point of
view is immense. There's no question that
we will always be a very Chinese-centric
company, while we very hurriedly go to
Ireland and establish an international
platform. But we know that our heritage
is always in China. That is also one of the
reasons why when we project our strategic allocations we think that Asia-Pacific
will have approximately 50 percent of our
entire fleet allocation, in terms of longterm planning, and we will allocate our
resources accordingly.
In terms of the number of people and
offices, China will be maybe 25 percent,
the rest of Asia-Pacific will be the other
25 percent, and there will be maybe
30 percent in Europe, with the remaining
20 percent in Americas

10:24 pm

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Jetrader - Summer 2018

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