At List Prices, the Aircraft Are Valued at $8.8 Billion
Aug. 25, 2014 7:21 a.m. ET
SINGAPORE—BOC Aviation Ltd., the Singapore-based aircraft-leasing arm of Bank of China Ltd. 601988.SH -0.37% , said Monday that it has ordered 82 aircraft from BoeingCo. BA +0.68%
The planes are valued at US$8.8 billion at list prices, according to a Boeing executive.
BOC Aviation is buying 80 single-aisle Boeing 737 jets, including 50 of the latest so-called Max model, which offer better fuel efficiency. The planes are scheduled to be delivered from 2016 through 2021.
The order also includes two Boeing 777-300ER widebody jets. BOC Aviation has already found a customer for the two 777-300ERs, according to a company statement, which didn't disclose the customer's identity.
Customers typically receive discounts of between 30% and 40% on the list prices of airplanes; the exact price at which the jets are sold isn't made public.
This is the first direct order for the Max jets by BOC Aviation, said Dinesh Keskar, Boeing's senior vice president for sales for Asia Pacific and India.
"The Boeing 737 is a very liquid asset and competition for sale and lease-back deals is very high," Mr. Keskar said.
Aircraft-leasing companies either buy planes directly from manufacturers and then place them with customers, or buy planes from airlines under sale-and-leaseback deals that allow the carriers to sell the ownership of their planes and keep them off their own balance sheets.
BOC Aviation said it had 251 planes in its fleet as of June 30. The fleet includes 118 Boeing planes that are currently flying with 27 airlines.
Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@wsj.com
No comments:
Post a Comment