AAWW closes loan with Chinese bank

ATLAS AIR WORLDWIDE HOLDINGS INC., a provider of air cargo assets and outsourced aircraft operating solutions, has closed a loan with Industrial and Commercial Bank of China Limited (ICBC).

Proceeds from the loan will be used to back leverage in the March 2010 acquisition of a Boeing 757-200SF aircraft by AAWW's subsidiary, Titan Aviation Leasing. Funds from the loan were provided pursuant to a commitment to advance up to approximately 70 per cent of the purchase price of the aircraft, said a report on MarketWatchBulletin's Business Wire.

Titan Aviation Leasing has dry leased the aircraft to Shanghai Airlines (now part of China Eastern Airlines) for a five-year term. The ICBC loan is coterminous with the dry lease.

"We are very pleased to initiate a relationship with ICBC," said William Flynn, president and chief executive officer of AAWW. "ICBC is a leading bank in China, one of the world's biggest commercial banks, and is expected to play an increasingly larger role in aviation finance in the future," he said.

"Based on our research, we expect that air cargo traffic on intra-Asia routes will grow at over eight per cent per year, while routes from Asia to Europe and North America will grow at more than seven per cent. Total world growth, meanwhile, is expected to average about 4.5 per cent annually.

"In addition, we expect strong growth in Asian business and consumer demand over the next 10 years to lead to an improving balance in air freight trade flows between Asia and other regions. It should also enhance the demand for highly efficient air cargo assets."
(Source:www.schednet.com)