Overview of BOC Aviation’s Fleet Expansion and Financial Health
BOC Aviation, a prominent aircraft leasing company affiliated with the Bank of China, has recently detailed significant growth and strategic financial movements in its latest report, issued on October 10, 2024. The company now boasts a diverse fleet of 693 commercial aircraft, which includes owned, managed, and ordered units. This expansion underscores BOC Aviation’s robust positioning in the aircraft leasing sector, catering to a growing global demand for air travel.
The fleet’s average age stands at five years, indicating a modern and efficient collection of aircraft. The owned segment of the fleet, comprising 430 aircraft, has an average remaining lease term of 7.8 years, ensuring long-term revenue stability. BOC Aviation not only owns but also manages aircraft for other lessors and financial entities, currently overseeing 32 aircraft in this capacity. The order book is also impressive with 231 new aircraft lined up for delivery from both Airbus and Boeing, poised to further modernize the fleet upon their phased arrivals.
Detailed Breakdown of Fleet Composition
The company’s fleet is strategically diversified to include both narrowbody and widebody aircraft, catering to varying passenger capacities and range requirements. The narrowbody fleet includes 23 Airbus A220 family aircraft, which are the smallest in the fleet, 70 Airbus A320ceo, and 133 A320neo models, with an additional 137 A320neos on order. Boeing’s representation in BOC’s portfolio includes 57 737NG and 65 737 MAX aircraft, with another 86 737 MAX on order, highlighting a strong commitment to this model.
In the widebody segment, BOC Aviation holds eight A330ceos and six A330neos, alongside nine A350s. The Boeing widebody aircraft include 27 777-300ERs and 27 Boeing 787 Dreamliners, indicating a preference for long-range, high-capacity models. Additionally, the company manages a small fleet of freighter aircraft, essential for cargo operations, highlighting the diversity and adaptability of BOC Aviation’s asset management strategy.
Recent Financial Endeavors and Market Position
In a strategic move to secure additional capital for further fleet expansion, BOC Aviation successfully issued $500 million in seven-year bonds, attracting a coupon rate of 4.625% per annum. This financial injection is expected to support the company’s ambitious growth plans amid increasing international demand for leased aircraft. BOC Aviation’s operational performance remains strong, with owned aircraft utilization rates holding steady at 99% as of September 30, 2024, reflecting high efficiency and demand alignment.
A recent report by KPMG positions BOC Aviation as the fifth largest aircraft lessor globally, following industry leaders such as AerCap, SMBC Leasing, Air Lease Corporation, and Avolon. This ranking underscores BOC Aviation’s significant impact and strategic operations within the competitive aircraft leasing market.
Upcoming Leases and Prospects
Looking ahead, BOC Aviation is set to continue its growth trajectory with new lease agreements. Notably, LOT Polish Airlines has agreed to lease three Boeing 737 MAX 8s from BOC Aviation, scheduled for delivery in 2025. This deal is part of BOC’s ongoing efforts to strengthen its global client base, which currently spans 93 airlines across 48 countries.