Bank of China leasing unit to expand fleet with 82 Boeings

Bank of China's aircraft leasing subsidiary, BOC Aviation, yesterday announced an order for a total of 82 Boeing planes with a listed value of US$8.8 billion, the largest single order in the lessor's 20-year history.

The order, for 50 new fuel-efficient 737 MAX 8s, 30 Next-Generation 737-800s to be delivered between 2016 and 2021 and two 777-300ERs already placed, came less than six weeks after the company ordered 43 A320 family planes from Airbus at the Farnborough International Airshow in July.

"This is a continuation of our commitment to be responsive to airline customers which are expanding or replacing older fleets," said BOC Aviation chief executive Robert Martin.

The Singapore-based lessor, the world's fourth largest by fleet value, currently has a portfolio of 251 planes, mostly B737 and A320 family aircraft with an average age of less than four years.

It will be taking delivery of an average 27 planes a year between 2015 and 2021 as a result of recent orders to replenish its fleet, while it usually sells 25 to 30 planes a year, company spokeswoman Claire Leow told the South China Morning Post. Demand will mainly be driven by customers in Asia-Pacific and North America.

Industry analysts said the speed at which BOC Aviation is boosting its fleet is in line with Boeing's and Airbus' market forecast.