As the latest step in its long-term relationship with China and its aviation industry, Boeing has agreed with four of the country's leading banks to work together to expand China's involvement in aircraft financing on a regional and global level.

Executives from Boeing Capital Corporation, the company's aircraft financing unit, met last week with officials from the Bank of China (BOC), the Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB) and the Export-Import Bank of China (EIBC).

Boeing joined each bank in signing agreements designed to enhance executive relationships, identify new aircraft financing opportunities with airlines inside and outside China, and enhance the aircraft finance and legal infrastructure in the People's Republic of China.

These latest joint agreements are rooted in the 36-year, mutually beneficial partnership between Boeing and China dedicated to the development of the country's airline and aviation industry and building a safe, efficient and profitable aviation system in China.

"China is currently the fastest-growing aviation market in the world, and Chinese banks are taking on an increasingly important role in supporting aviation's unparalleled growth in the country," said Walt Skowronski, Boeing Capital president.

"Recognizing the strong and deep bonds that exist between Boeing and China, we and our Chinese colleagues agree the time is right to honor our relationship by increasing joint efforts to expand China's presence and opportunities in the greater global aircraft financing marketplace," Skowronski said.

The Boeing Capital executives also joined with more than 40 government, banking and leasing officials in the first "reunion" of participants in the Boeing-China Leasing Seminars. Boeing began the seminar program in 2005 to share its leasing expertise to benefit the Chinese aviation finance and leasing industry and members of the Chinese Banking and Regulatory Commission (CBRC).

The seminar covers leasing fundamental subjects such as aircraft asset management, airline credit, legal and contracting issues and tax matters among others. The reunion event on Nov. 10 was hosted by CBRC Chairman Liu and held at the Diaoyutai State Guesthouse.

According to Boeing's latest 20-year market forecast, China is expected to be the largest market outside the U.S. for new commercial airplanes going forward. That translates into a projected need for 3,710 airplanes (or US$390 billion by value) through the year 2027. China also is the largest international market for Boeing's commercial airplanes.

"In the midst of the current global economic turmoil, Boeing views Asia's financial markets, especially China, as a significant bright spot whose financiers are well positioned to benefit from the aircraft investment opportunities currently available," said Foster Arata, vice president - Asia Pacific and Greater China for Boeing Capital. "Financiers here are planning to continue investing in the aircraft sector and, where appropriate opportunities exist, prudently grow their aircraft portfolios."

Chinese banks have been active in supporting the country's airplane financing needs, estimated to be US$4.5 billion in 2009. Boeing hopes the new working together agreements will allow Chinese investors to prosper as they support Boeing's valued airline customers in China in their efforts to secure airplane financing to support fleet expansions.