ISTAT Jetrader - Spring 2022 - 33

by their success. It's also important
for us to create value for CMB and
its shareholders.
Jun Li: There are multiple dimensions
to measure the success of a company's
business. For us, asset size is just
one perspective. Meanwhile, it is
also very important for us to serve
AVIC group and create value for
AVIC's shareholders.
What is your view on the recovery of
the global airline sector?
Shuhua Fang: Some airlines have
turned losses into profits in 2021; for
others, this may take longer. Although
the omicron variant sets odds against
previous predictions, my view is in line
with the International Air Transport
Association's that a full recovery should
occur during 2023-2024. By market
segment, short and medium haul within
large domestic markets' recovery
should occur ahead of intercontinental
long haul by one to two years. Our
customers have managed the COVID-19
challenge fairly well so far. Our fleet
utilization and rent collection remain
robust. Nonetheless, we remain
vigilant and will work together with our
customers to overcome any possible
difficulties. With regard to the global
airline sector, some less developed
countries lack sufficient relief
measures, leaving their airlines at risk.
Jun Li: COVID-19 has had a huge
impact on the aviation sector. We saw
a bounce back right before omicron,
especially in North America and Europe.
However, omicron has brought some
uncertainty to the market. It is still
unclear of the transmissibility and
severity of this new variant. So, it is still
uncertain what the impact of this new
variant will be to the market. But, in the
long term, we are always positive about
the aviation market.
Are there any aircraft types or
assets that you particularly favor
or dislike?
Shuhua Fang: As I have mentioned,
CMBFL owns a fleet of 150 aircraft,
predominantly narrowbodies.
Generally speaking, new generation
aircraft such as the A320neo and 737
MAX match our priorities quite well.
We have A220s in our portfolio, too,
which we believe fits certain intraregion
markets well. The A350 and
B787 may also be included at a level
we are comfortable with. The COMAC
C919 will be another interesting
nominee in a longer time frame. With
consideration of market acceptance,
fuel efficiency, environmental
friendliness, etc., older types like the
A330-300 and B777-300 may not be
on our radar.
Jun Li: We will still focus on the new
generation of narrowbody aircraft
like A320neos and the B737 MAX, as
well as COMAC aircraft. In addition
to this, we are always open to new
opportunities of different types of
aircraft if the risk is manageable.
What advice do you have for
Airbus and Boeing as it pertains
to lessors?
Shuhua Fang: Half of the world's
fleet are now on lease. If you count
the deliveries by source of financing,
that number may even be higher. I
to try their best to keep the market
in balance, leveling the playing
field and contributing to a fair and
transparent environment.
What are your thoughts on the role
of Chinese lessors?
Shuhua Fang: The rise of Chinese
lessors has been one of the most
prominent events for the industry
during last decade. They have been
active aviation financiers even during
the COVID-19 era, especially those
who have bank parents. The aviation
leasing business has been much
more vitalized and diversified since
they joined the game.
How does your company interact
with ISTAT, and do you have any
final words of wisdom you'd like
to share?
Shuhua Fang: CMBFL has been an
ISTAT member since we entered
the aircraft leasing business. ISTAT
provides us a macro view of the
industry, while enabling us to share
updates and exchange ideas with
the community. I really look forward
to meeting with friends face to
face at ISTAT events soon. I would
like to end our conversation with
an old proverb: After rain comes
fair weather. The aviation industry
" I hope OEMs treat lessors the same as they
treat airlines, especially the Chinese lessors, as many
of them have placed orders directly. "
hope OEMs treat lessors the same
as they treat airlines, especially the
Chinese lessors, as many of them
have placed orders directly. There
are many more things OEMs can
do. Market values of aircraft were
suffering turbulence even before the
pandemic. It's important for the OEMs
will come back in better shape, as
will life.
Jun Li: We appreciate the support
from ISTAT to all Chinese lessors. We
do hope that ISTAT will have more
events in China after the pandemic,
and we also welcome all our friends
to visit our office in Shanghai.
Jetrader * SPR I NG 2022 * 33
ISTAT Jetrader - Spring 2022

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