Leasing in Thailand
Introduction Nowadays, there are several approaches of long-term financing which depends on the needs of each sector of business. With strengthening Asian currencies and lowering prices of aircraft, Asian buyers are given an edge to engage in acquiring leasing business. The shift of leasing form West to East is more apparent in Japan and China, where healthy stable economic growth persists and the needs of domestic and international aviation increases.
The articles “Aircraft Leasing Shifts East From West” published by The Wall Street Journal Asia (2012) and “Jettisoning the Aircraft Leasing Business” by The New Year Times (2012) provided valid evidence to the afore mentioned phenomenon.
First, in January of 2012, the Royal Bank of Scotland Group agreed to sell its aircraft-leasing operations to Japanese investor Sumitomo Mitsui for $7.3 billion dollars. Then Mitsubishi UFJ Lease and Finance Company, the leasing unit of Mitsubishi UFJ Lease and Financial Group, acquired U.S. aircraft-leasing entity Jackson Square Aviation for $1.3 billion dollars. However, a major highlight was 80.1 percent sales made by American International Group (AIG) of its International Leasing Finance Corporation (ILFC) to a Chinese consortium for $4.2 billion dollars, with a 9.9 percent option for later acquisition. Mostly state-owned enterprises, a Chinese consortium which included China Aviation Industrial Fund, owned by Aviation Industry Corporation of China and China Construction Bank; New China Trust, a trust company with Barclays’ 19.5 percent ownership; and P3 Investments Limited. Thus the American International Group, as a result of transaction, would only retain 10 percent of its International Leasing Finance Corporation.
Indeed, such a rapid, dramatic shift from western to eastern hemisphere makes not only aircraft leasing, but leasing in general, a fascinating topic of research. It is therefore imperative that further, more in-depth examination regarding history, rules
The articles “Aircraft Leasing Shifts East From West” published by The Wall Street Journal Asia (2012) and “Jettisoning the Aircraft Leasing Business” by The New Year Times (2012) provided valid evidence to the afore mentioned phenomenon.
First, in January of 2012, the Royal Bank of Scotland Group agreed to sell its aircraft-leasing operations to Japanese investor Sumitomo Mitsui for $7.3 billion dollars. Then Mitsubishi UFJ Lease and Finance Company, the leasing unit of Mitsubishi UFJ Lease and Financial Group, acquired U.S. aircraft-leasing entity Jackson Square Aviation for $1.3 billion dollars. However, a major highlight was 80.1 percent sales made by American International Group (AIG) of its International Leasing Finance Corporation (ILFC) to a Chinese consortium for $4.2 billion dollars, with a 9.9 percent option for later acquisition. Mostly state-owned enterprises, a Chinese consortium which included China Aviation Industrial Fund, owned by Aviation Industry Corporation of China and China Construction Bank; New China Trust, a trust company with Barclays’ 19.5 percent ownership; and P3 Investments Limited. Thus the American International Group, as a result of transaction, would only retain 10 percent of its International Leasing Finance Corporation.
Indeed, such a rapid, dramatic shift from western to eastern hemisphere makes not only aircraft leasing, but leasing in general, a fascinating topic of research. It is therefore imperative that further, more in-depth examination regarding history, rules
References: 3.Lieberman , H., & Smith, J. (1976). The leasing of consumer goods. American Bankers Association. Retrieved from http://india-financing.com/country-pages-leasing-thailand.html 4.Chiu, J