sinolod

BOC Aviation expands its rental fleet to 693 aircraft

Mars October 14, 2024

BOC Aviation, the aircraft leasing arm of the Bank of China, has released figures from the company’s latest fleet review and revealed financial news regarding a recent bond issue that will raise additional funds for its future expansion.

In a statement released on October 10, 2024, the organization said it had expanded its commercial aircraft fleet to 693 units, a figure that includes owned and managed aircraft, as well as those the company has on order. The average age of its current aircraft fleet is five years, while the average remaining lease term of the 430 aircraft it owns is 7.8 years.

In addition to owning aircraft outright, the company also manages aircraft on behalf of other lessors and financial institutions. BOC says it currently manages a total of 32 aircraft under this agreement. In addition, 231 additional aircraft are on order from Airbus and Boeing.

Breaking down the lessor’s current fleet, on the narrow-body side, it has 23 aircraft in the Airbus A220 family, this type being the smallest in its portfolio. Then, BOC has 70 A320ceo and 13 others under management. As for the A320neos, the company has 133 aircraft in ownership and another 137 on order. In terms of Boeing products, BOC has 57 Boeing 737NG family aircraft, with 13 more under management, and 65 737 MAX aircraft, with 86 more on order.

Airbus

In the widebody segment, BOC owns eight A330ceos and operates another single aircraft, while it also has six A330neos in its current fleet. It also owns nine A350s. On the Boeing side, it owns 27 777-300ERs and manages three others. From the Boeing 787 Dreamliner series, it owns 27 aircraft and only one managed aircraft. The company also owns five cargo planes, another of which is a managed example.

According to the BOC statement, during the third quarter of 2024, the company executed a total of 70 new aircraft transactions, including signing commitments to purchase 19 additional aircraft, taking delivery of seven new aircraft, overseeing the sale of six managed units and completing the transaction. 35 other rental commitments with carriers.

During this period, BOC’s global customer base has expanded to 93 airlines in 48 countries. Owned aircraft utilization remained at 99% as of September 30, 2024 – a strong indicator of the current dynamism of demand in the international aircraft leasing market.

Elsewhere in its operations, the organization announced that it had successfully raised $500 million through the issuance of seven-year bonds at a nominal rate of 4.625% per annum. Raising these funds will likely enable BOC to further expand its fleet in the coming years, as demand for leased aircraft continues to rise amid growing international demand for air travel.

According to a report published by KPMG in early 2024, BOC Aviation ranks fifth in the ranking of aircraft lessors by portfolio size after AerCap, SMBC Leasing, Air Lease Corporation and Avolon.