BOC Aviation latest results

BOC Aviation Limited has released headline figures of its most recent quarter results. Steven Townend, Chief Executive Officer and Managing Director, said, “We had a strong start to the year, adding 10 aircraft to 2024’s delivery pipeline and signing 31 lease commitments, the best first quarter since 2020. Aircraft sales momentum remains strong and we have sold five aircraft so far in 2024. Meanwhile, our collection rate of 100% reflects the improved financial health of our airline customers and our risk aware culture.”

 

Transactions Summary 

 

·         A total fleet of 688 aircraft owned, managed and on order

 

·         An average aircraft age of 4.8 years and an average remaining lease term of 7.9 years for the 427 owned aircraft fleet, both weighted by net book value1

 

·         Managed fleet comprised 32 aircraft

 

·         Order book of 229 aircraft

 

·         Executed a total of 54 transactions in the first quarter of 2024, including:

Commitments to purchase 10 aircraft 

Delivery of five aircraft

Sale of four owned and one managed aircraft

31 lease commitments

 

·         Customer base of 90 airlines in 45 countries and regions in the owned and managed portfolios 

 

·         Owned aircraft utilisation was 99% for the first quarter

 

·         Raised US$500 million of five-year bonds

BOC Aviation reports record earnings in 2023.....

BOC Aviation Limited has released details of 2023 results, which show a net profit after tax of US$764 million for the year, exceeding 2019’s previous record of US$702 million. 

The improvement reflected underlying growth across the business, combined with insurance settlements in respect of aircraft in Russia.  The balance sheet grew by 10% during 2023 to more than US$24 billion, reflecting investment in new aircraft. In 2023, BOC committed to acquire 95 aircraft and ended the year with record total committed capital expenditure of US$12 billion and an orderbook of 224 aircraft.

“We are delighted to report record earnings as we celebrate our 30th anniversary,” Steven Townend, Chief Executive Officer and Managing Director, BOC Aviation, commented. “We achieved record fleet growth in 2023, which also drove our revenues, cashflows and asset values to record highs. With passenger travel growth expected to remain firm, we are well placed to leverage continued strong demand for the modern aircraft that comprise our fleet and orderbook.”

Financial Highlights

Our financial highlights for the year ended 31 December 2023 are:

• Total revenues and other income rose 7% year-on-year, to US$2.5 billion

• Record net profit after tax of US$764 million compared with US$20 million in 2022

• Earnings per share of US$1.10 and net assets per share of US$8.28

• Operating cash flow net of interest rose 8% to US$1.6 billion

• Total assets of US$24.2 billion at 31 December 2023, up 10% on 2022

• Raised US$4.1 billion of new debt financing comprising US$2.5 billion of loans and

US$1.7 billion of bonds

• Maintained strong liquidity of US$5.6 billion, comprising US$392 million in cash and

cash equivalents and US$5.2 billion in undrawn committed credit facilities at 31 December 2023

• The Board recommended a final dividend for 2023 of US$0.2721 per share, pending

approval at the AGM to be held on 30 May 2024. The final dividend will be payable

to shareholders registered at the close of business on the record date, being 7 June

2024, bringing the total dividend for the financial year 2023 to US$0.38521 per

share, calculated at 35% of net profit after tax

Portfolio and Operational Highlights

As at 31 December 2023, BOC Aviation had:

• A total fleet of 684 aircraft owned, managed and on order, with an average aircraft

age of 4.6 years and an average remaining lease term of 8.1 years for the 426

owned aircraft fleet, weighted by net book value2

• A customer base of 91 airlines in 45 countries and regions in the owned and

managed portfolios

• Executed a record 348 transactions in 2023, including:

• Commitments to purchase 95 aircraft

• Delivery of 65 aircraft (excluding two acquired by an airline customer on

delivery)

• Sale of 20 aircraft and one engine

• 142 lease commitments

• An orderbook of 224 aircraft

• Recorded aircraft utilisation of 99% for the owned portfolio for the year ended 31 December 2023

BOC Aviation has entered into a finance lease transaction involving four Airbus A320NEO aircraft with IndiGo

BOC Aviation has entered into a finance lease transaction involving four Airbus A320NEO aircraft with IndiGo. The aircraft are all powered by CFM LEAP-1A engines. All four aircraft are scheduled for delivery in 2024.

“We are pleased to be closing another four finance leases with IndiGo. We continue

to work closely with our long-time customer to support its expansion strategy as it builds a fleet of latest technology fuel-efficient aircraft,” said Steven Townend, Chief Executive Officer and Managing Director, BOC Aviation. “This is our first transaction in the year of the dragon, and it sets the tone for the year as we continue growing our fleet by investing in latest generation aircraft and partnering with high quality customers.”

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BOC Aviation signs lease deal with Indigo for four Airbus A320NEO jets

BOC Aviation Limited confirmed this week that it has entered into a finance lease transaction involving four Airbus A320NEO aircraft with IndiGo. The aircraft are all powered by CFM LEAP-1A engines. All four aircraft are scheduled for delivery in 2024. 

“We are pleased to be closing another four finance leases with IndiGo. We continue to work closely with our long-time customer to support its expansion strategy as it builds a fleet of latest technology fuel-efficient aircraft,” said Steven Townend, Chief Executive Officer and Managing Director, BOC Aviation. “This is our first transaction in the year of the dragon, and it sets the tone for the year as we continue growing our fleet by investing in latest generation aircraft and partnering with high quality customers.”  

“We are pleased to announce that we have extended our partnership with BOC Aviation through a lease agreement for four Airbus A320NEO aircraft. These aircraft will be instrumental in supporting our expansion plans and strengthening our position in both domestic and international markets. At IndiGo, we are dedicated to providing our customers with unparalleled travel experiences, and this partnership will allow us to continue delivering affordable, on-time, and hassle-free travel across our extensive 6E network,” said Riyaz Peermohamed, Chief Aircraft Acquisition and Financing Officer of IndiGo.

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BOC Aviation's fourth quarter and year ended 31 December 2023 operational transactions.

BOC Aviation Limited has announced its operational transactions for the fourth quarter and year ended 31 December 2023.

Steven Townend, Managing Director and Chief Executive Officer, said, “In 2023 we celebrated our 30th anniversary.  It was a year of record operational performance where we executed our largest ever number of transactions that included 142 lease commitments, the most in any year since our inception. We committed to purchase 95 aircraft, providing the foundation for future balance sheet growth, and we took delivery of 65 aircraft - the most since 2017.  Collections exceeded 100% for a second year running and our aircraft utilisation rate improved to 99% from 96% in 2022, both reflecting the strength of the aviation industry. Looking ahead, with a strong aircraft portfolio and orderbook, we are confident in meeting our airline customers’ needs and maintaining our position as a top five global aircraft operating lessor.”

Transactions Summary 

 

·       A total fleet of 684 aircraft owned, managed and on order1

 

·        An average aircraft age of 4.6 years and an average remaining lease term of 8.1 years for the 426 owned aircraft fleet, both weighted by net book value2

 

·        Managed fleet comprised 34 aircraft

 

·        Order book of 224 aircraft1

 

·        Executed a total of 128 transactions in the fourth quarter of 2023 and a total of 348 in 2023, including:

Commitments in the fourth quarter to purchase 31 aircraft and a total of 95 in 2023

Took delivery of 39 aircraft (excluding one acquired by an airline customer on delivery) in the fourth quarter, and a total of 65 (excluding two aircraft acquired by an airline customer on delivery) in 2023

Sale of 15 owned aircraft in the fourth quarter, which brought the total number of owned aircraft sold during the year to 20 

35 lease commitments in the fourth quarter and a total of 142 for 2023

BOC Aviation orders six Airbus just to lease to German airline Condor

BOC Aviation Limited has confirmed it has agreed to purchase four new Airbus A321NEO and two new Airbus A320NEO aircraft from Airbus, and then these modern jets will be leased to German holiday and leisure carrier Condor. The aircraft have a scheduled delivery date in 2027 and 2028 and will be placed on long-term lease arrangements with Condor as it seeks to embark on a massive expansion programme. 

“We are delighted to be working with Condor once again, supporting its fleet growth and renewal with these six latest technology aircraft,” said Steven Townend, Deputy Managing Director and Chief Financial Officer, of BOC Aviation. “This transaction adds to our delivery pipeline of the world’s most advanced aircraft models, which will enable our Company to continue on its path of long-term sustainable growth.”

“The successful deal with BOC Aviation Limited is another important step to becoming the operator of one of the most modern and efficient fleets in Europe. The partnership is extremely important for us and we are grateful for the continuous support and trustful cooperation with our new partner”, said Björn Walther, Chief Financial Officer, Condor.

One of the newest members of the fleet landed at Düsseldorf Airport from Toulouse on the 18th of December and started operating scheduled flights a few days later on Friday with a flight first to Frankfurt and then on to a long-haul service. The A330neo, registration D-ANRT is dedicated to Ralf Teckentrup with a special livery that had been unveiled at an exclusive event attended by representatives from the fields of politics, aviation and industry as well as employees from Condor.  The A330neo also bears the words "thank you, tecke" - a dedication to Ralf Teckentrup in recognition of 20 years of tireless commitment.

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BOC Aviation

Happy birthday BOC Aviation

Over the weekend, BOC Aviation celebrated its 30th birthday!  The company was founded as Singapore Aircraft Leasing Enterprise by Singapore Airlines and Boullioun Aviation Services on 25th November 1993. 

 

“Since inception, we have grown into one of the world’s top-five aircraft operating lessors, and the largest headquartered in Asia. Our Company has generated more than US$5.7 billion of cumulative net profit after tax and has committed to purchase more than 1,000 aircraft,” said Robert Martin, Managing Director and Chief Executive Officer. “As we celebrate our 30th birthday, BOC Aviation today has a current fleet of 681 aircraft, owned, managed and on order, with close to 200 employees around the world. I appreciate the cooperation and support of all our customers, suppliers, other stakeholders, and especially our directors and colleagues for working closely to build the BOC Aviation we know today.” 

During the last 30 years, the Company has executed more than 1,250 leases with over 190 airline customers with aircraft on lease at present to 93 airlines in 44 countries and regions. To support this expansion, the Company has raised over US$40 billion in debt financing, assisted by strong investment-grade credit ratings.  

“With total assets of more than US$22 billion, we are the largest aircraft owner in Southeast Asia and manage these with fewer than 200 people. Since Bank of China acquired us in December 2006, we have grown our revenue from US$255 million to US$2.3 billion in 2022,” said Steven Townend, Deputy Managing Director and Chief Financial Officer. “In the last 30 years, our return on equity has been consistently one of the highest amongst major lessors and we have one of the highest credit ratings in the industry. Contributing to this has been the strong support that we have received from the Singapore government, encouraging us to develop the leasing industry locally.” 

BOC Aviation names Steven Townend as new Managing Director and Chief Executive Officer

BOC Aviation Limited has announced that Mr Steven Townend will be appointed as Managing Director and Chief Executive Officer with effect from 1 January 2024 replacing Mr Robert Martin who will step down from the role on 31 December 2023. Mr Martin will remain as a non-executive Director of the Board.

Mr Wu Jianguang will be appointed Chief Financial Officer with effect from 1 January 2024, replacing Mr Townend in the role of Chief Financial Officer which he will relinquish on 31 December 2023. 

Following a thorough review, the Board of Directors have appointed Mr Steven Townend, a 22-year veteran of the firm and currently Deputy Managing Director and Chief Financial Officer, to the position of Managing Director and Chief Executive Officer to succeed Mr Martin. Mr Townend has more than thirty years of leasing and banking experience in aviation. Prior to his appointment as Chief Financial Officer in October 2020, Mr Townend had previously held Chief Commercial Officer roles with BOC Aviation in both London and Singapore for over 16 years. 

“On behalf of the Board I would like to thank Mr Martin for his leadership through the key moments in the company’s history and for leading the company to unbroken profitability through both good times and more challenging times for the industry,“ said Chairman Liu Jin. “I congratulate Steven on his new role, he brings a deep knowledge of both the company and the industry.  I am very pleased that our careful succession planning means that we have an excellent successor, who will drive the continued success of the company through its next phase of growth”. 

BOC Aviation delivers the final of five new Airbus A320NEO aircraft to Turkish Airlines

Leasing giant, BOC Aviation has confirmed this week that it has delivered the final of five new Airbus A320NEO aircraft to Turkish Airlines. All five are part of BOC's existing order book and air on long-term lease to the Turkish flag carrier. 

“We are pleased to announce this transaction, which deepens our longstanding relationship with Turkish Airlines,” said Robert Martin, Managing Director and Chief Executive Officer, BOC Aviation. “The five A320NEO aircraft that we have delivered to the company reflect our commitment to providing our customers with the world’s most technologically advanced and fuel-efficient aircraft.” 

Turkish Airlines is based at its main hub in Istanbul, Turkey and operates a fleet of more than 380 aircraft to over 340 national and international destinations. Celebrating its 90th year since inception, its shares are listed on the Borsa Istanbul and it has been a member of the Star Alliance since 2008. 

Ethiopian Airlines gets a Boeing 737 jet on lease from BOC

BOC Aviation Limited confirmed this week that it has delivered a used Boeing 737-800 aircraft for lease to Ethiopian Airlines Group. The aircraft is powered by CFM56 engines.

“We are delighted to add Ethiopian, Africa’s largest carrier, as a new customer,” said Robert Martin, Managing Director and Chief Executive Officer, BOC Aviation. “This transaction builds on our position in the African market and supports Ethiopian’s expansion plans.”  

Ethiopian Airlines Group CEO Mr. Mesfin Tasew said, “Ethiopian Airlines is pleased to establish a new partnership with BOC Aviation and receive the Boeing 737-800 aircraft on lease. We will be deploying the new arrival to our strategic partner ASKY Airlines to enable it to expand its operation across and beyond its extensive West and Central Africa network. As a global airline, Ethiopian will eye for further partnership with BOC Aviation and other industry players.”    

BOC commits to purchase 41 aircraft in last quarter.

BOC Aviation, a leading global aircraft operating leasing company has just released its operational transactions for the quarter that ended 30 September 2023.

BOC Aviation had a total fleet of 681 aircraft owned, managed and on order.

An average aircraft age of 4.8 years and an average remaining lease term of 7.8 years for the 413 owned aircraft fleet, both weighted by net book value.

Managed fleet comprising 35 aircraft

·         Order book of 233 aircraft

Executed a total of 124 transactions in the third quarter of 2023, including:

Commitments to purchase 41 aircraft

Delivery of 11 aircraft

62 lease commitments  

 

Signed largest loan transaction with 16 banks globally totalling US$1.375 billion with a customer base of 93 airlines in 44 countries and regions in the owned and managed portfolios.  Owned aircraft utilisation improved to 99.1% as at 30 September 2023. 

BOC Aviation signs a US$1.375 billion club term loan transaction with 16 banks globally.

       BOC Aviation Limited confirmed today that it has signed a US$1.375 billion club term loan transaction with 16 banks globally. The five-year unsecured term loan transaction is the largest the Company has signed since its inception in 1993 and comprises three facilities provided by banks from Asia, Europe, North America and the Middle East to BOC Aviation, BOC Aviation (USA) and BOC Aviation (Ireland).  

Citigroup Global Markets Singapore Pte Ltd acted as the Global Coordinator and Documentation Agent with The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch, acting as Facility Agent for all three facilities. The proceeds will be used for general working capital purposes and refinancing existing debts. 

“We are very pleased to conclude our largest club term loan transaction at such competitive pricing levels. This will enable us to remain agile in the market, and to continue investing in accretive growth opportunities. We continue to see strong support from global banks and are pleased to add three new lenders to our banking group,” said Steven Townend, Deputy Managing Director and Chief Financial Officer of BOC Aviation.

IndiGo signs lease deal for 10 Airbus A320NEO jets from BOC Aviation

IndiGo, the budget Indian airline that operates around 1900 daily flights connecting 79 domestic and 25 international destinations, has signed a deal to lease ten Airbus A320NEO aircraft from the aircraft leasing giants, BOC Aviation.  These fuel-efficient and reliable jets are all powered by CFM LEAP-1A engines and are scheduled for delivery during the rest of this year. 

“We are delighted to be embarking on another transaction with our long-time customer IndiGo, to enable the airline to expand its fleet with the latest technology aircraft,” said Steven Townend, Deputy Managing Director and Chief Financial Officer, BOC Aviation. “This showcases our ability to deploy alternative financing structures, to continue our long-term sustainable growth.”

“We are pleased to enhance our partnership with BOC Aviation with the lease agreement for these 10 aircraft. This extended collaboration with BOC Aviation is part of our expansion strategy across domestic and international markets. India is currently among the fastest growing civil aviation markets in the world and these aircraft will help IndiGo consolidate its position in the region,” said Riyaz Peer Mohamed, Chief Aircraft Acquisition and Financing Officer, IndiGo.

BOC Aviation releases its half year 2023 results

Aircraft leasing and management firm BOC Aviation has just released its unaudited results for the six months ended 30 June 2023, which demonstrate a strong performance and positive outlook.

The company reported net profit after tax of US$262 million for the first half of 2023 driven by higher lease rental income and on the back of rising global passenger traffic.  During the six months ended June 2023, we grew our total assets to almost US$23 billion and committed to acquire 23 aircraft to close the first half of 2023 with record total committed capital expenditure of US$11 billion.

The Board of Directors approved a distribution of US$0.1131 per share by way of interim dividend, which represents 30% of our NPAT in the first half of 2023 and reflects the Board’s continued confidence in our business outlook.

“In the first half of 2023, BOC Aviation reported NPAT of US$262 million, a 27% improvement on the core net profit after tax of US$206 million that we generated during the first half of last year,” Steven Townend, Deputy Managing Director and Chief Financial Officer, BOC Aviation, commented. “We saw strong demand for our aircraft and this was reflected in the growth that we achieved in our balance sheet, income and cashflow. Our robust delivery pipeline positions us well to capitalise on rising airline customer demand for the young, fuel-efficient aircraft in our fleet.”

Financial Overview

The following is our financial overview for the six months ended 30 June 2023:

• Total revenues and other income of US$1,061 million

• Net profit after tax of US$262 million, compared with net loss after tax of US$313

million, or core net profit1 after tax of US$206 million, in the first half of 2022

• Earnings per share of US$0.38 rose 27% compared with core1 earnings per share

of US$0.30 in the first half of 2022

• Interim dividend of US$0.1131 per share compared with US$0.0889 per share for

the first half of 2022

• Total assets rose 4% to US$22.9 billion as at 30 June 2023 compared with 31

December 2022, reflecting ongoing investments in aircraft

• Record first half operating cash flow net of interest of US$721 million

• Maintained strong liquidity with US$547 million in cash and short-term deposits2

in addition to US$5.2 billion in undrawn committed credit facilities as at 30 June 2023

Portfolio and Operational Overview

Our operational overview as at 30 June 2023 included:

• A portfolio of 6523

aircraft owned, managed and on order

• Owned fleet of 404 aircraft, with an average age of 4.7 years and an average

remaining lease term of 8.0 years, each weighted by net book value4

• An orderbook of 2133

aircraft scheduled for delivery through to 31 December 2029

• Total new aircraft deliveries of 16 aircraft, including one acquired by an airline

customer on delivery

• Transitioned eight used aircraft to airline customers

• Sold three aircraft from the owned fleet

• Signed 45 lease commitments in the first half of 2023

• Customer base of 91 airlines in 42 countries and regions in the owned and managed

fleet

• Owned aircraft utilisation at 99%

• Cash collection from airline customers of 101.8% for the first half of 2023 compared

with 96.9% in the first half of 2022

• Managed fleet comprised 35 aircraft

New chief operating officer for BOC Aviation named.

BOC Aviation Limited announced that Mr Thomas (Tom) Chandler has been appointed Chief Operating Officer. In his new role, he oversees the Technical, Procurement, IT, Legal and Transaction Management and Compliance and Insurance Departments.

 

Mr Chandler was formerly BOC Aviation’s Deputy Chief Operating Officer, based in Singapore. He has held this position since January this year, having joined from TUI Group, where he was Managing Director, Fleet and Asset Management. Mr Chandler replaces Mr David Walton, who retired on 30 June after nine years with the Company.

 

“Management succession is an important part of any business,” said Steven Townend, Deputy Managing Director and Chief Financial Officer. “Our thanks go to David for his contribution and achievements over many years.  We are delighted to welcome Tom to the senior management team and continue on our path of long-term sustainable growth.”

BOC Aviation reports on a successful quarter

BOC Aviation, a leading global aircraft operating leasing company with a fleet of 652 aircraft owned, managed and on order, has just announced its operational transactions for the quarter that ended 30 June 2023.

BOC Aviation has a total fleet of 652 aircraft owned, managed and on order with an average aircraft age of 4.7 years and an average remaining lease term of 8.0 years for the 404 owned aircraft fleet, both weighted by net book value.  The firms order book stands at 213 aircraft.

During the second quarter of 2023, BOC executed a total of 73 transactions including:  commitments to purchase 20 aircraft, delivery of 14 aircraft (including one acquired by an airline customer on delivery), sale of two owned aircraft, 32 lease commitments.  

 

Its customer base of 91 airlines in 42 countries and regions in the owned and managed portfolios, managed fleet comprised 35 aircraft, with all aircraft on lease, owned aircraft utilisation was stable at 99% as at 30 June 2023, with two single-aisle aircraft off lease, of which one is committed for lease.

 

BOC Aviation delivers the first of two Airbus A320neo jets to Mexican low-cost airline Viva Aerobus

BOC Aviation Limited has confirmed it has delivered the first of two new Airbus A320NEO aircraft on long-term lease to Mexican low-cost carrier Viva Aerobus. Both jets are powered by Pratt & Whitney GTFTM engines and are from BOC's existing order book. 

“Today we have a double celebration: we are delighted to welcome Viva as a new customer and our owned fleet hits the 400 aircraft milestone with this delivery,” said Robert Martin, Managing Director and Chief Executive Officer, BOC Aviation. “We are excited to support Viva’s rapid growth with some of the most technologically advanced and fuel-efficient aircraft available.” 

“We would like to thank BOC Aviation for helping us grow our fleet, with leading engine technology and optimum cabin experience for our passengers. This is key for our growth strategy, operating a very young and reliable fleet, offer customer-focused service, and market leading low fares,” said Juan Carlos Zuazua, Chief Executive Officer, Viva Aerobus.

Viva Aerobus is a Mexican low-cost airline fully owned by the largest bus company group in Mexico, IAMSA. Based in Monterrey International Airport, Mexico, Viva started operations in November 2006 and currently operates a fleet of 73 Airbus A320 and A320NEO family aircraft to more than 40 destinations serving Colombia, Cuba, the United States and Mexico with more than 100,000 flights per year. Its six bases are located in Cancun, Mexico City, Mérida, Guadalajara, Monterrey and Tijuana.

JetBlue and BOC Aviation agreed deal for long-term leases on 7 Airbus jets

The leasing giant BOC Aviation Limited and New York's hometown airline JetBlue have agreed on a finance lease deal for two Airbus A321NEO aircraft and five A220-300 aircraft with the jets powered by Pratt & Whitney GTFTM engines.

 

“This finance lease transaction builds on the long-term relationship that we have enjoyed with JetBlue, one of the United States’ most highly regarded airlines,” said Robert Martin, Managing Director and Chief Executive Officer, BOC Aviation. “It is also another example of how we are building our balance sheet by deploying capital into latest technology aircraft, using financing structures beyond our traditional operating lease product.”

 

“We’re pleased to strengthen our relationship with BOC Aviation by entering into these attractive finance lease transactions for our next generation, fuel-efficient aircraft,” said Ursula Hurley, Chief Financial Officer, JetBlue.

BOC Aviation sets up new customer, Eastar Jet with Boeing 737 MAX.

The aircraft leasing and management specialists BOC Aviation Limited has delivered Boeing 737- MAX 8 aircraft to a new customer, Eastar Jet Co. The aircraft is powered by CFM LEAP-1B engines and is on a long-term lease basis with the carrier which is based at Gimpo Airport in Seoul, Korea. Eastar Jet offers services to Jeju Island in Southern Korea and started flying in 2009.

“We are pleased to participate in Eastar’s growth story and to welcome it as a new customer as we continue to provide the latest technology aircraft,” said Robert Martin, Managing Director and Chief Executive Officer, BOC Aviation. “Korea and Asia-Pacific are markets that are recovering their vibrancy as they enjoy renewed growth and this transaction is emblematic of the demand from customers that we are working with.”

“With the proactive cooperation of BOC Aviation, we were able to successfully deliver a Boeing 737-8 aircraft within the scheduled date,” said Sang-Jong, Yoo, Chief Operating Officer of Eastar Jet. “We had experienced the operational efficiency of Boeing 737-8 by operating it for the first time in South Korea. Starting with this Boeing 737-8, we will expand our routes and initiate substantial business expansion.”

BOC Aviation announces the first of 11 Boeing 737 MAX 8 delivered to Lynx Air.

BOC Aviation Limited the aircraft operating leasing company has confirmed it has delivered the first of 11 Boeing 737 MAX 8 aircraft on lease to Lynx Air.  All 11 aircraft are part of the BOC's existing order book of planes, some of which are understood to be coming from the 130+ 737 MAX jets that are still in storage following the types grounding. The jets that BOC is leasing to Lynx are powered by CFM LEAP-1B engines. 

“We are delighted to welcome Lynx as a new customer. This delivery will enable the airline to serve its customers with one of the most fuel-efficient and technologically advanced aircraft flying today,” said Robert Martin, Managing Director and Chief Executive Officer, BOC Aviation. “This transaction demonstrates our ability to provide popular, modern aircraft to our customers, aligned with our strategy of generating long-term sustainable growth.” 

“We are thrilled to be receiving our seventh Boeing 737 aircraft, which will enable us to expand our North American network and offer our ultra-affordable fares and great flying experience to more Canadians,” said Merren McArthur, CEO and President of Lynx Air. “We are looking forward to continuing our successful partnership with BOC Aviation and Boeing, as we continue to transform the aviation market in Canada.”

Boeing announced an issue with the 737 MAX in the last couple of weeks which affects the connection of the tail fin to the rest of the aircraft.  The fault is considered to be just a 'gnarly defect' which doesn't affect the airworthiness of the plane, yet the issue and rectifying it will cause delays to the production rate the aircraft maker warns. 

It is unknown exactly how many jets the latest flaw affects, although many believe it is all jets produced since 2019 and repairs on completed aircraft could take weeks, although during the production such corrections will only take a couple of days. 

 Last week Boeing President and CEO Dave Calhoun said:  "We will work diligently through rework of affected airplanes in production and storage to ensure each meets our standards prior to delivery. This effort will impact the timing of deliveries over the next several months; however, we remain confident in the operational and financial goals we set for this year, as well as for the longer term."

Lynx Air is one of the new ultra-low-cost Canadian airlines which is on a mission to make air travel accessible to all, with ultra-affordable fares and a customer-focused flying experience. Lynx is a privately owned airline and says it has the financial backing and industry expertise required to transform the Canadian aviation landscape which is already over-subscribed with excess airline capacity.  

BOC Aviation is a leading global aircraft operating leasing company with a fleet of 635 aircraft owned, managed and on order.  Its owned and managed fleet was leased to 86 airlines in 39 countries and regions worldwide as at 31 March 2023. BOC Aviation is listed on the Hong Kong Stock Exchange and has its headquarters in Singapore with offices in Dublin, London, New York and Tianjin.