BOC Aviation
BOC, the Singapore-based lessor, topped up its single-aisle orderbook today. BOC placed big orders with Airbus and Boeing.
Airbus
This order is for an additional 70 A320neos. The language used says “family,” so the actual model likely would be the A321, which now handily outsells the A320.
“This transaction will lift our remaining Airbus orderbook to around 200 aircraft and takes our total Airbus aircraft deliveries to over 700 (including purchase and leasebacks) since our first order in 1996,” said Steven Townend, Chief Executive Officer and Managing Director, BOC Aviation. “This order solidifies our position as one of the top five global aircraft operating lessors and provides us with a strong delivery pipeline into the next decade. We look forward to providing more airline customers with this popular fuel-efficient and technologically advanced aircraft.”
This order is for 50 MAX 8s, expanding the lessor’s 737 MAX portfolio to 215 737- 8s and 737- 9s.
“Our strong partnership with Boeing has led to this 50-aircraft order for the fuel-efficient Boeing 737-8 aircraft. With this transaction, we have commitments to purchase over 140 of these aircraft, which is the largest Boeing orderbook position in our history,” said Steven Townend, Chief Executive Officer and Managing Director, BOC Aviation. “This order will enable us to continue providing our airline customers with technologically advanced aircraft for their future fleet growth.”
Summary
- 75% of the global fleet is in the single-aisle category.
- Because of the tight and wobbly supply chain, lessors (as market makers) must take advanced delivery slots when they can.
- The current Airbus backlog represents over a decade’s deliveries. Boeing’s backlog is equally stretched out, and delivery slots are at a premium.
- Even if fuel prices remain at current levels, older aircraft are becoming expensive to operate in terms of fuel burn and MRO.
- This means demand for new aircraft is likely to remain robust. The MAX and NEO are, essentially, the best options for operators trying to maintain optimal operating costs.
- BOC’s move will likely spur its competitors to make similar moves, possibly before the Paris show.
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