The leasing subsidiary of Bank of China, BOC Aviation has recently placed the biggest order of planes in its 20-year history. The order, which is reportedly worth $8.8 billion, comprises of two long-haul wide-body planes of the 777-300ER series, 30 Next Generation aircrafts of the 737-800 series, 50 Boeing planes of the 737 Max 8 series. The order comes only a week after the China-based leasing body SMBC
Aviation had placed orders for 115 Airbus jet planes.
The huge financing of leasing bodies in the aviation industry represents the increased surge in the aviation industry in Asia and the huge demand from airlines in this region. In an attempt to maintain lean balance sheets, airlines are seen following the trend of buying upgraded fleet-capacity and fuel-efficient airplanes on lease.
BOC Aviation is a Singapore based, and one of the world’s leading lease providing bodies. In a statement released by the company about the deal, the company stated that the airplanes ordered in the deal would be delivered from 2016 to 2021.
Lessors such as BOC Aviation, who lease airplanes throughout the globe and whose fleet of airplanes is swiftly rising over the time, represent an important customer for the global aviation industry.
The order represents a part of BOC Aviation’s strategy for the next seven years of building its fleet of airplanes, which contained 251 delivered airplanes as of June 30.
Asia-Pacific represents the fastest growing regional market for the aviation industry. This region is expected to add around $2 trillion worth revenues to the aviation industry through its buying power over the next 20 years. This amount represents nearly 39% share of the global anticipated revenues of $5.2 trillion over that period.