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SIL-2007-01 SALE TO BOC
SIL-2009-01 LESSOR CREDIT LOSS
ESTABLISHED IN 1993. OPERATING AS A JET AIRPLANE LEASING COMPANY, IT STARTED AS A JOINT VENTURE BETWEEN SINGAPORE AIRLINES (SIA) (64.5%) AND BOULLIOUN LEASING (BOU) (35.5%). IN DECEMBER 2006 IT WAS ACQUIRED BY THE BANK OF CHINA (BOC).
8 SHENTON WAY
18-01 TEMASEK TOWER
SINGAPORE 068811, REPUBLIC OF SINGAPORE
SINGAPORE (REPUBLIC OF SINGAPORE) WAS ESTABLISHED IN 1965, IT IS AN ISLAND THAT COVERS 618 SQ KM, ITS POPULATION IS 4.0 MILLION, ITS CAPITAL CITY IS SINGAPORE, AND ITS OFFICIAL LANGUAGE IS ENGLISH.
OCTOBER 1995: 6/10 ORDERS 777-200'S.
JUNE 1996: 8 ORDERS A320'S & 4 ORDERS A321'S, +12 OPTIONS (A320
MARCH 1997: 1 747-400F LEASED TO ASIANA AIRLINES (AAR).
DECEMBER 1998: 1 777-200 BOUGHT FROM KOREAN AIR (KAL) AND LEASED BACK TO (KAL). 2 ORDERS (NOVEMBER 1999) 777-300'S, LEASED TO EMIRATES AIRLINES (EAD).
AUGUST 1999: FISCAL YEAR (FY) 1998 = +$21.8 MILLION RECORD! HAS 41 ORDERS A319'S/A320'S/A321 AIRPLANES.
JULY 2000: FARNBOROUGH AIRSHOW ANNOUNCEMENT OF +11 A320'S FOR TOTAL 50. HAS 27 AIRPLANES ON LEASE TO 16 AIRLINES IN 13 COUNTRIES. 11 A320'S FAMILY INCLUDES 3 ORDERS A319'S, & 8 ORDERS A320'S.
FEBRUARY 2001: NEGOTIATING FOR 4 ORDERS A380'S.
APRIL 2001: SOLD 1 777-200ER (TRENT) (28415), EX-MALAYSIAN AIRLINES (MAS) TO OASIS INTERNATIONAL LEASING, (UAE).
FEBRUARY 2002: EXERCISED OPTION FOR 1 A320 FOR TOTAL 51 AIRBUS A319/A320/A321'S: 3 A319'S; 42 A320'S; & 6 A321'S. 19 A320'S & 2 A321'S ALREADY DELIVERED.
2001 PRE-TAX = +$41.4 MILLION WITH 40 AIRPLANES IN PORTFOLIO.
MAY 2002: 1 747-400F LEASED TO ASIANA AIRLINES (AAR).
February 2004: See attached link to "Leasing Survey 2004," which shows (SALE) (SIL) ranked 11th of the top 40 airplane leasing companies with 37 narrow bodies and 13 wide bodies.
July 2004: WestLB assumes 35.5% stake in (SALE) (SIL) from its Boullioun Aviation Service Unit (BOU). Singapore Airlines (SIA) (35.5%) and Singapore government agencies (29%) own the remainder.
(SIL) has a portfolio of 60 airplanes plus 16 A320's on order.
WestLB is seeking to sell (BOU), who has a portfolio of 127 airplanes: including 82 737's; 1 747-400; 5 757's; 3 767's; 3 MD-82's; 18 orders A319/A320's; 33 A320 family airplanes.
March 2005: $1.39 billion, 20/20 orders (October 2006) 737-800's. The 20 options include conversions to 737-700, 737-800 & 737-900X models.
September 2005: Singapore Aircraft Leasing Enterprise (SIL) will lease 3 new 737-800s to Kenya Airways (KEN) for 8 years from the 4th quarter of 2006.
February 2006: Rockwell Collins was selected by Singapore Aircraft Leasing Enterprise (SIL) to provide a comprehensive package of communication, navigation and surveillance avionics for up to 20 new 737NGs with deliveries beginning in the 4th quarter of 2006. The agreement also includes purchase rights for up to 20 additional airplanes.
April 2006: Singapore Aircraft Leasing Enterprise (SALE) (SIL) ordered 10 737NGs valued at $675 million, plus 10 options and 10 purchase rights, with the firm airplanes scheduled for delivery between early 2009 and late 2010. The 737-800 is the baseline model (SALE) specified, although substitutions can be made. (CFMI) valued the firm engines at approximately $140 million at list price.
May 2006: Singapore Aircraft Leasing Enterprise (SALE) (SIL) reported a profit of +$34.7 million for the financial year ended March 31, "a sixfold increase from the previous year" when it earned +$5.2 million. Revenues rose +29% to $255.1 million. According to the operating lessor, the strong performance "reflects the market rebound in the airplane leasing business, which traditionally lags the airline industry cycle by up to 2 years." Lease rates for new contracts "are generating significantly increased returns," while "low-yielding leases signed during the downturn, have largely expired and been replaced by higher rentals with better credit airlines."
(SIL) took delivery of 17 new airplanes last year, comprising 7 A320s directly from Airbus (EDS) and 10 A319s acquired under sale/leaseback arrangements with airlines. The (SIL) portfolio numbered 79 airplanes at fiscal year end, up from 62 in Fiscal Year (FY) 2005.
June 2006: Aircraft Management Solutions of Amsterdam said Singapore Aircraft Leasing Enterprise (SIL) chose Aircraft Lease Contract Application software as its lease management software tool.
July 2006: Singapore Aircraft Leasing Enterprise )SALE) (SIL) will lease 2 new 737-800s to Shandong Airlines (SHG) for 10 years each. The airplanes will be delivered from Boeing in the 1st half of 2007. It is (SHG) 's 1st contract with (SIL), which has 30 737-800s on firm order.
(SIL) named former (GECAS) (GEF) Singapore VP & Regional Manager, Structured Finance, Asia David Farrell as Head of Risk Management.
October 2006: Singapore Airlines (SIA) Group reported a net profit of +S$293.2 million/+$186.7 million for its fiscal 2nd quarter ended September 30, down -14.6% from a +S$343.2 million profit in the year-ago quarter, a decline the company attributed to "higher fuel cost."
(SIA) said in a statement that demand "is expected to remain buoyant" but cautioned that "the price of jet fuel is still volatile and remains high."
2nd-quarter revenues rose +7.7% to S$3.61 billion while expenses climbed +10.9% to S$3.35 billion, producing operating income of +S$259.4 million, narrowed -21.5% from operating income of +S$330.6 million in the year-ago quarter. Fuel spending jumped +27.4% to S$1.33 billion, more than double the next-highest expenditure, staffing, on which the carrier spent S$634.8 million. (SIA) pointed out that it spent S$2.56 billion on fuel for the 6 months ended September 30, an increase of +31.9% over the year-ago semester. Fuel accounted for 39.4% of total expenditures in the 6-month period.
2nd-quarter passenger traffic grew +5.9% to 22.57 billion (RPK)s on a +2.9% lift in capacity to 28.41 billion (ASK)s, producing a load factor of 79.4% LF, up +2.2 points. Yield increased +2.9% to S10.8 cents. Cargo traffic was ahead +2% to 1.98 billion (FTK)s on a +1.2% rise in capacity to 3.15 billion (FTK)s. Cargo load factor was 62.9% LF, up +0.6 point, and cargo yield grew +1.6% to S39.1 cents.
(SIA)'s half-year net profit was +S$868.3 million, up +50.3% from +S$577.8 million in the 6 months ended September 30, 2005. Revenues rose +9.9% to S$7.03 billion, expenses climbed +11.8% to S$6.5 billion and operating profit fell -8.7% to +S$533.2 million from +S$583.7 million.
December 2006: Singapore Airlines (SIA) sold its 35.5% stake in Singapore Aircraft Leasing Enterprise (SALE) for S$198 million.
(SIL), Asia's largest leasing company, announced that it has been acquired by Bank of China (BOC) for $965 million in cash.
The bank said the purchase is part of its "overall corporate strategy in expanding its scope of diverse financial services and increasing its diversification into non-interest income."
(SIL) owns 63 airplanes and manages another 14 on behalf of 3rd parties. It has firm orders for 28 and options or purchase rights on an additional +20, (BOC) (SIL) said. The fleet has an average age of 3.5 years and is 70% comprised of 737s and A320s. It has $3.1 billion in assets and $2.28 billion in debt.
"(SIL) will leverage on its global client resources and institutional network in China and overseas to support (SIL)'s global business development, and particularly in the Chinese aviation sector, which is one of the fastest growing in the world," the bank said.
(CEO) Robert Martin will continue to direct (SIL), while (BOC) will appoint directors to the board. (SIL) said it will maintain its Singapore headquarters and operate as a standalone unit within (BOC). "Everyone at (SIL) looks forward to working with customers, suppliers and all other business partners as the company moves into a new and exciting phase in its development," it said.
Last month, (SIL) took delivery of the 1st of 30 737NGs. The 737-800, ordered in May 2005, will enter service with Kenya Airways (KEN). Delivery of the entire order will continue through 2010.
January 2007: Singapore Aircraft Leasing Enterprise (SIL) ordered 20 A320 family airplanes, and exercised 20 options and purchase rights with Boeing for 737NGs in deals valued at a combined $2.8 billion, with all 40 airplanes to be delivered between the 2009 2nd quarter and the 2012 1st quarter.
The orders are the 1st placed by (SALE) (SIL) since it was acquired by the Bank of China last month. Asia's largest airplane lessor said they "underscore the commitment by the bank to accelerate" (SALE) (SIL)'s expansion.
The 737s will be powered by (CFM56-7B)s valued at $275 million. An engine choice on the A320s will be "completed in the 1st quarter of 2007," (SALE) (SIL) said.
Boeing said the 737-800 is the baseline model specified by (SALE) (SIL), but that the lessor has the right to switch to other 737 models. Including the options announced yesterday, (SALE) (SIL) now has 47 737s on firm order. It is believed to be evaluating the 787 and A350 XWB for potential orders.
May 2007: Record revenue and the proceeds from the sale of its stakes in Singapore Aircraft Leasing Enterprise (SALE) (SIL) and the (SIA) Building, helped carry Singapore Airlines (SIA) Group to a stunning +S$2.13 billion/+$1.4 billion profit for the fiscal year ended March 31, a +71.6% surge over the +S$1.24 billion earned in the prior 12-month period. A +8.6% increase in operating revenue to S$14.49 billion was boosted by +S$421 million from the aforementioned sales and an additional +$247 million gain resulting from a tax write back. Expenses rose +8.7% to S$13.18 and operating profit climbed +8.3% to +S$1.31 billion. The company credited the airline segment for driving the improved group result.
Singapore Airport Terminal Services suffered a -16.8% drop in operating profit to +S$153 million, (SIA) Engineering's operating profit fell -24.3% to +S$102 million and (SIA) Cargo (SQC) swung to a -S$32 million loss from the prior year's +S$174 million profit.
Full-year traffic rose +7.7% to 89.15 billion (RPK)s and capacity was up +2.3% to 112.54 billion (ASK)s as (SIA) took delivery of 9 777-300ERs and decommissioned 5 747-400s. Load factor climbed +3.6 points to 79.2% LF. Yield rose +2.8% to S$0.109 and cost per (ASK) increased +5.3% to S$0.079.
Looking ahead, (SIA) Group said, "The key challenges being faced this year are limited capacity growth arising from delays in the delivery of the Airbus A380, high price of aviation fuel, and uncertainty over the continued strength of the USA economy and its implications globally." It added that "competition will remain keen [and] discipline on costs will be maintained."
Its fiscal year fleet plan comprises the addition of 3 A380-800s and 5 777-300ERs, and the retirement of +5 more 747-400s. In the 4th fiscal quarter, (SIA) reported net earnings of +S$671.3 million, improved over net income of +S$266.3 million in the year-ago period owing largely to the (SALE) (SIL) sale.
June 2007: Singapore Aircraft Leasing Enterprise (SALE) (SIL) will change its name to "(BOC) Aviation," effective July 2. The move follows its acquisition by the Bank of China. (SALE) (SIL) has a portfolio of 75 airplanes flying with 29 airlines and has 63 on order with Boeing (TBC) and Airbus (EDS) for delivery to 2012.
July 2007: (BOC) Aviation (SIL), formerly Singapore Aircraft Leasing Enterprise (SALE), selected the (CFM56-5B) to power seven firm and 10 option A320 family airplanes. The engine order is valued at $95 million.
September 2007: (BOC) Aviation (SIL) chose (IAE) (V2500)s to power up to 20 A320 family airplanes, including 10 firm and 10 options, worth $240 million, if all options are realized.
December 2007: (BOC) Aviation (SIL), Bank of China Ltd's airplane-leasing unit, aims to buy up to $2 billion worth of planes that airlines have ordered and are unable to finance with bank loans because of the global credit squeeze. Asia's biggest lessor plans to more than double airplane purchases from airlines next year, from the $700 million it bought in 2007, said (CEO) Robert Martin. The Singapore-based company received a $1 billion credit facility, its largest loan, from Bank of China this month at a rate lower than it would get from other banks, he said. ``With issues that are hitting financiers in Europe and USA related to subprime, we are now seeing a slowing down of liquidity growth in Asia as well,'' Martin said in an interview. ``With a financing market that is going to be tighter, this is the right time for us to go back to the sale and leaseback market.'' A surge in borrowing costs that prompted the Federal Reserve and four other central banks to add cash to the financial system has squeezed airlines. Record fuel prices and a possible slowdown in the USA has made sale-and-leaseback arrangements more attractive to carriers to finance new planes.
The global market for leased airplanes will be worth $144 billion by 2008, from $115 billion in 2004, according to Frost & Sullivan, a New York-based research company. Growth has attracted new entrants such as (DAE) Capital, the leasing unit of Dubai Aerospace Enterprise, and lenders including Standard Chartered Plc and Macquarie Bank Ltd. ``Sale and leasebacks are pretty good because you get your money back from the lease and a profit,'' said Jim Eckes Managing Director of Indoswiss Aviation. ``It benefits the airline, because they don't have to borrow expensively from the bank.''
Asiana Airlines (AAR), South Korea's 2nd-largest carrier, plans to add +20 more airplanes by 2012 as it starts new routes to Europe and North America. It has not yet decided whether it will buy or lease the planes. Borrowing costs jumped in mid-August as banks, including Bear Stearns Cos and Merrill Lynch & Company, started reporting losses on securities tied to USA subprime mortgages. The global credit slump may force banks, brokerages and hedge funds to cut lending by $2 trillion and trigger a ``substantial recession'' in the USA, Goldman Sachs Group Inc forecast on November 16.
The 3-month dollar London inter-bank offered rate (Libor), climbed as high as 5.15% from 4.87% a month before. The rate dropped to 4.99%. The rate was 5.725% on September 7, the highest since January 16, 2001. The loan from Bank of China, which bought the leasing unit last year, will be at an interest margin <the rate (BOC) Aviation (SIL) has been getting from other banks, which have charged 45 to 55 basis points above (Libor). (Libor) is a benchmark for borrowing costs. A basis point is 0.01% point. ``That positioned us very well to be able to assist our airline customers in financing their airplanes,'' according to Martin, who was the Aircraft Finance Director at the investment banking arm of (HSBC) Holdings Plc in Hong Kong, prior to joining the leasing company in 1998. ``What the debt line gives me is the flexibility to go in very quickly.''
Airlines such as Tiger Airways (TGR), a budget carrier part-owned by Singapore Airlines (SIA), and Easyjet (EZY), Europe's 2nd-biggest discount airline, have funded airplane acquisitions by selling the planes and then leasing them back. Jet Airways (JPL) said it made a profit from the sale and leaseback of 4 737 airplanes in September.
About half of (BOC) Aviation (SIL)'s business comes from sale and leaseback agreements, with the remainder from direct leases. Next year, it aims to spend 80% of its marketing efforts on getting new sale-and-leaseback agreements, Martin said, backed by the credit line from the Bank of China and $500 million of unused bank loans. The unit is not publicly traded. Rising fuel costs are curbing profitability at airlines, limiting potential funding for new airplanes. Airline earnings will fall -11% next year, because of higher oil prices and an expected slump in demand in the USA, the International Air Transport Association said. At the same time, higher demand for air travel in Asia has boosted orders and prices at Airbus (EDS), (SAS), and Boeing (TBC). The world's 2 biggest airplane makers said in November orders will peak this year, beating a record set in 2005.
(BOC) Aviation (SIL), which has posted profits every year since it started in 1993, is set to report record earnings for the year ending December 31, Martin said. The company had a record profit of +$70.5 million for the year ended March, doubling from the year before. It has changed its fiscal year end to December, in line with its parent.
January 2008: (BOC) Aviation (SIL), a wholly owned subsidiary of Bank of China (BOC), announced 10-year lease agreements for 5 737NGs with India's Jet Airways (JPL). The airplanes will be delivered to Jet (JPL) between March 2010 and November 2011. (SIL) currently owns 76 airplanes, flying with 29 airlines worldwide and has +40 more 737NGs on firm order, 37 of which already have been leased. Last month, (BOC) (SIL) announced deals to lease 4 737-800s to Hainan Airlines (HNA), 2 737-800s to Shandong Airlines (SHG), and 1 737-800 to Skymark Airlines (SKM).
February 2008: (BOC) Aviation (SIL), formerly (SALE), place an order for 5 A330-200Fs on the last trade day of the Singapore Airshow.
It is (BOC) Aviation (SIL)'s 1st freighter order placed directly with a manufacturer. (CEO) Robert Martin said the commitment "reflects our confidence in strong future demand for wide body production freighter airplanes." Airbus (EDS) said the A330-200F can carry up to 64 tonnes more than >7,400 km in its standard configuration, or 69 tonnes up to 5,930 km in an optional configuration.
March 2008: (BOC) Aviation (SIL) announced a sale/leaseback deal with Air Canada (ACN) covering 2 new 777-300ERs scheduled for delivery this month and next. Lease deals are for 12 years each. (SIL) also announced the delivery of the 1st of 7 new 737-800s to Jet Airways (JPL). A 2nd will arrive at the end of this month, with the remaining 5 scheduled for delivery in 2010 and 2011.
July 2008: Rockwell Collins and Thales (THL) were selected by (BOC) Aviation (SIL) to provide avionics and cockpit systems for up to 47 new A320 family airplanes with deliveries commencing in the 4th quarter. Collins' package includes the WXR-2100 MultiScan Hazard Detection System, VHF Data Radio, HF radio system, (VOR) receiver, (DME), (ADF), (TCAS) II, (ATC) transponder and (MMR) including (GPS). Thales (THL) was selected to provide a comprehensive package of flight management systems (FMS) including the (FMS), radio altimeter, angle of attack sensor, pitot probe, combined (RMI), and (ATC) control panel.
November 2008: (BOC) Aviation (SIL), which said it anticipates "ongoing demand for leased airplanes from the A320 family at both full-service and low-cost airlines around the world," placed firm orders for 20 airplanes, Airbus (EDS) announced at the Zhuhai Air Show. (SIL), a subsidiary of Bank of China, now has ordered 98 single-aisle airplanes from Airbus (EDS), of which 58 have been delivered. It also has 5 A330-200Fs on order for delivery in 2012 and 2013, and (BOC) announced the selection of the (Trent 700) to power those airplanes, which already have been placed on "long-term" leases.
January 2009: SEE ATTACHED - - "SIL-NEWS-JAN09."
March 2009: Alaska Airlines (ASA) completed a sale-leaseback deal with the Bank of China (BOC)’s Singapore-based (BOC) Aviation leasing unit (SIL) for 6 737-800s. Under the agreement, (ASA) will lease the planes for 12 years. The strategy of selling and leasing back airplanes improves cash positions but also increases operating expenses.
(SIL) finalized a sale-and-leaseback deal with Virgin Blue (VOZ) for 1 737-800 delivered late last year and 737-800s scheduled for delivery in the 2009 4th quarter. The airplanes will be leased for an average of 10 years each.
(SIL) has a portfolio of 104 airplanes and has +70 more on firm order for delivery through 2013.
April 2009: (BOC) Aviation (SIL) announced a sale/leaseback transaction with Southwest Airlines (SWA) covering 6 737-700s that will be leased back to the carrier for 14 years each. The 1st tranche of 3 airplanes closed April 2 and the 2nd is scheduled to close in the current quarter. (SIL) closed a similar deal with (SWA) in January covering 10 airplanes.
September 2009: Cathay Pacific (CAT) announced 2 transactions designed to increase its liquidity: The divestment of a stake in Hong Kong Aircraft Engineering Company (HAECO) and a sale-and-leaseback deal with (BOC) Aviation (SIL).
(CAT) will sell its 20.7 million shares in (HAECO), or 12.5% of its holding, for approximately HK$1.9 billion/$245.3 million, or HK$91.83 per share, to Swire Pacific. The deal is subject to approval of (CAT)'s independent shareholders and would reduce its stake in the Maintenance Repair & Overhaul (MRO) provider (HAECO) to 15%. Swire's would increase to 46%.
(CAT), Swire Pacific and (HAECO) Chairman Christopher Pratt said, "The transaction will bring clear advantages for all parties concerned. From a (CAT) point of view, it will improve (CAT)'s cash position during an extremely difficult time for the aviation industry. At the same time, (CAT) will retain a strategic interest in (HAECO). The transaction will enable Swire Pacific to make a significant increase in its strategic investment in (HAECO) on terms it regards as appropriate. At the same time, it affirms Swire Pacific's long-term commitment to (CAT) and (HAECO) in particular, and to Hong Kong aviation in general."
(CAT) (CEO) Tony Tyler said, "Cash preservation has remained (CAT)'s top priority during this downturn and over the past year we have already taken many measures to help us achieve this goal. The sale of part of our (HAECO) stake will provide funds that will strengthen our balance sheet at a very challenging time for the business. We will keep a strategic stake in (HAECO), which is very important because (HAECO) is our main provider of overhaul and maintenance services, and (CAT) is (HAECO)'s biggest customer."
Swire holds just under 42% of (CAT), which reported a +HK$812 million profit in the 1st half of 2009.
The deal with (BOC) (SIL), the airline's 1st, covers 6 of the 19 777-300ERs that (CAT) has on firm order. The 6 airplanes are scheduled for delivery between the 2009 4th quarter and the 2011 2nd quarter. Tyler said it was the largest sale-and-leaseback arrangement in (CAT)'s history and is "consistent with our cash-preservation priority." He said (CAT) has no plans to cancel any orders but remains in negotiations regarding deferrals. Its fleet comprises 97 owned and 25 leased airplanes. It has 39 airplanes scheduled for delivery through 2012. (SIL) currently has 127 airplanes in its portfolio with +64 more on order.
February 2010: (BOC) Aviation (SIL) inked a deal to lease 2A320-200s to Air New Zealand (ANZ). The airplanes are scheduled for delivery in the 4th quarter of 2011.
March 2010: (BOC) Aviation (SIL) reported a +$137 million profit in 2009, up +28% from the +$107 million earned the prior year. (SIL)'s portfolio comprised 142 airplanes at year end compared to 92 at the close of 2008. The Bank of China (BOC) subsidiary owned 118 and managed an additional +24 on behalf of 3rd-party investors. It took delivery of 17 planes last year and acquired 31 on sale/leaseback deals. It has +49 more on order and 4 on committed sale/leaseback deals through 2012.
November 2010: (BOC) Aviation (SIL) ordered 8 777-300ERs for long-term lease to Thai Airways International (TII). Boeing valued the orders at $2.2 billion at average list prices. The airplanes, powered by (GE90-115BL) engines, will be delivered from August 2012 to October 2013. The lease marks the 1st time (BOC) Aviation (SIL) has worked with Thailand’s national carrier.
The Thai board of directors approved the acquisition of the airplanes last June. “We are in the process of replenishing our order book as air traffic has returned strongly. With the order of these 8 777-300ERs for lease to Thai (TII), we have further strengthened the quality of both our lease and airplane portfolios. We look forward to developing further our partnership with Thai (TII) and playing a long-term role in the carrier's future fleet requirements,” (BOC) Aviation (SIL) Managing Director & (CEO) Robert Martin said.
(BOC) Aviation (SIL), owned by the Bank of China (BOC), has a portfolio of 137 single-aisle and 26 wide body airplanes.
Singapore-based (BOC) Aviation (SIL) announced it has ordered 30 Airbus (EDS) A320 family airplanes with deliveries scheduled over 3 years from 2012.
(BOC) Aviation (SIL) Managing Director & (CEO), Robert Martin said that "the order is timely as the aviation industry has returned to profitability and airlines are looking to add capacity. In the last 3 years, we successfully doubled the size of our fleet and have >160 airplanes as of today. In the years ahead, we will continue to focus on sustainable organic growth by adding reliable and efficient airplanes."
Including the latest order, (BOC) (SIL) has ordered 128 A320 family airplanes, of which 80 have been delivered.
December 2010: (BOC) Aviation (SIL) announced it signed an agreement for the lease of 1 new A320-200 airplane to (LAN) Airlines. The airplane, powered by (IAE) (V2527E-A5) SelectOne engines, is scheduled for delivery in the 1st quarter of 2011. This deal marks the 2nd time that (BOC) Aviation (SIL) has worked with (LAN).
(LAN) (CEO) Passengers, Armando Valdivieso said, “(LAN) Airlines has been serving the Latin American air transportation market for 81 years. We are pleased to partner with (BOC) Aviation (SIL) as we strengthen our flight schedules with the new airplanes.” (SIL) Deputy Managing Director & (CCO) Steven Townend noted that (LAN) is one of the strongest airlines in the Americas and is growing quickly. “We see a lot of potential in the Latin American aviation industry particularly with the recent consolidations,” he said.
February 2011: Remi Le Meur, VP Marketing, Europe & Africa.
March 2011: (BOC) Aviation (SIL) reached an agreement to lease 5 A330-200Fs on order from Airbus (EDS) with Hainan Airlines (HNA). The airplanes are scheduled to be delivered in 2012 and 2013 and will be operated by Yangtze River Express Airlines (YTH), a subsidiary of the (HNA) Group.
(HNA) Group Chairman Chen Feng said, "The aircraft will meet our capacity demands which have been increasing on the back of the global economic recovery."
November 2011: (BOC) Aviation (SIL) signed a contract with Embraer (EMB) for 15 E190 airplanes. Deliveries are scheduled from the 4th quarter of 2012 through 2014.
Embraer (EMB) said it has received >1,000 firm orders for its E-Jets from 60 companies in 40 countries.
December 2011: (BOC) Aviation (SIL) entered into a sale and leaseback transaction for 4 new Embraer E195s, the lessor's 1st such transaction involving Embraer airplanes. The airplanes are on long-term lease to Brazil's Azul (AZL). 2 have been delivered and 2 are scheduled for delivery by the 2012 2nd quarter.
February 2012: Rockwell Collins announced orders for its avionics from (BOC) Aviation (SIL) at the Singapore Airshow.
The (BOC) Aviation (SIL) order calls for avionics as baseline and includes the WXR-2100 MultiScan Threat Detection System and GLU-925 Multi-Mode Receiver (MMR), for up to 30 new A320 airplanes, which are also slated for delivery later this year. The package also includes Automatic Direction Finder, Distance Measuring Equipment, High Speed Data Radio, Very High Frequency Transceiver and Omni-directional Radio.
“This win signifies (SIL)’s commitment to provide advanced, proven avionics solutions for more efficient and reliable flight operations to its global customer base that spans >40 airlines,” Rockwell Collins VP & Managing Director Asia/Pacific TC Chan said.
(BOC) Aviation (SIL) has placed an order for 20 150-seat Commercial Aircraft Corporation of China (COMAC) (CCC) C919s. It operates a fleet of >170 airplanes with average fleet age of 4 years.
(COMAC) reportedly has 235 orders for the C919 from customers including Air China (BEJ), China Eastern Airlines (CEA), China Southern Airlines (GUN), Hainan Airlines (HNA), Sichuan Airlines (SIC), China’s Bank of Communications Financial Leasing Company, China Development Bank Leasing Company, (ICBC) Financial Leasing Company, China Aircraft Leasing Company and (GE) Capital Aviation Services (GECAS) (GEF).
(CAAC) Minister, Li Jiaxiang said the regulator encourages Chinese carriers to purchase domestically produced trunk liners and supports using the C919 on international routes.
The C919 entered the final design definition phase last year. Detailed design will be completed this year. The 1st flight is scheduled for 2014. Type certification is expected by 2016, followed by 1st delivery. By 2020, (COMAC) expects to produce 150 C919s annually.
September 2012: Asian lessor, (BOC) Aviation (SIL) has received its 1st production line Embraer E190 airplane, which will be placed with Kazakhstan carrier, Air Astana (AKZ).
The E190 is the 1st of 3 (SIL) E190s destined for (AKZ). The other 2 airplanes are scheduled for delivery in spring 2013 and 2014.
(AKZ) President Peter Foster said the airplane will be used to further expand the airline’s network.
(BOC) Aviation (SIL) has a portfolio of 193 airplanes, with a further 61 on firm order.
October 2012: Singapore-based, (BOC) Aviation (SIL) will lease 2 Embraer E190s to (TUI) Travel (TUG) for its Jetairfly (TUB) subsidiary. The E190s will be delivered in the 1st half of 2013 and will be configured with 112Y slimline seats in a single-class layout, and will provide more capacity on lower-demand routes.
Jetairfly (TUB) Chairman Elie Bruyninckx said, “With the E190, we can reduce the number of costly triangle and intermediate-stop flights that are necessary with our larger airplanes to consolidate loads in smaller markets. That means more nonstop flights and shorter travel times for our passengers.”
November 2012: (BOC) Aviation (SIL) has signed an agreement with Brazil’s (GOL) (GOT) to purchase and lease back 8 new 737-800s. The 737-800s are scheduled to be delivered starting early next year with the 8th 737-800 arriving in the 2014 3rd quarter. (GOT) last month inked a similar sale and leaseback agreement on 4 737-800s with (GE) Capital Aviation Services (GEF).
(SIL) noted it has committed $1.5 billion over the last several months to new purchase and leaseback transactions. (SIL) now has a portfolio of 203 owned and managed airplanes with another 54 on firm order and 24 on committed purchase and leaseback deals.
January 2013: Bank of China (BOC) subsidiary, (BOC) Aviation (SIL) has placed a firm order for 50 A320 family airplanes, including 25 A320neos family. This latest airplane deal, which was announced this month but was sealed in December, marks (SIL)’s 1st commitment to the A320neo family - SEE ATTACHED - "SIL-A320neo - 2013-01." Delivery is scheduled from the 2nd half year of 2014 to the end of 2019.
(BOC) Aviation (SIL) said the order “comprised A320 and A321 variants of both engine options, ie ceos and neos.
(SIL) has a fleet of 203 owned and managed airplanes and another 100 on firm order, including 20 (COMAC) (CCC) C919s, which were ordered in 2012 and 15 Embraer E190s from 2011. It last placed an order for A320ceos in 2010.
July 2013: (KLM) Cityhopper (AUK) has concluded a lease agreement with (BOC) Aviation (SIL) to add 6 Embraer E190s to its current fleet of 22 E-Jets. The additional E190s are part of (AUK)’s strategic plan to replace the oldest airplanes in its Fokker fleet. The 1st of the 6 E190s is scheduled to be delivered during the 2nd half of 2013.
Consistent with its current E190s, the new E190s will also be configured with 100Y seats in a single-class layout. After delivery of the last airplane from this new acquisition, (KLM) Cityhopper (AUK) will have more E190s in its fleet than any other airplane type. All of the E190s will be deployed across (KLM)’s European network from Amsterdam’s Schiphol Airport. “It is a major endorsement for the E-Jets program to see (KLM) Cityhopper (AUK) continuing its fleet modernization with additional E190s,” said Paulo Cesar Silva President & (CEO), Embraer Commercial Aviation (EMB). “Through its partnership with AirFrance (AFA), the combined group will operate >50 airplanes, the largest fleet of E-Jets in Europe. The participation of (BOC) Aviation (SIL) was key in the success of this transaction and shows the role such an important lessor plays in the E-Jets program.”
“This deal is a perfect example of the investments that (KLM) is making,” said (KLM)’s (CEO) Camiel Eurlings. “Not only do these investments make travel more comfortable, they also contribute to a more sustainable operation and greater efficiency, all of which will help us achieve our ambitious aims to reduce noise and carbon emissions.”
“We are delighted to work with (KLM), by helping its subsidiary (KLM) Cityhopper (AUK) to support its modernization plan with the E190, a versatile and excellent airplane,” said Robert Martin Managing Director & (CEO) of (BOC) Aviation (SIL).
September 2013: Airbus (EDS) began the 1st day of the Aviation Expo China 2013 securing commitments and orders from several Asia Pacific region carriers for up to 168 A320 family airplanes worth $15.3 billion based on current list prices.
(BOC) Aviation (SIL), the Singapore-based airplane leasing subsidiary of Bank of China, signed a firm order to purchase 13 A320ceo and 12 A320neo airplanes. The order comes less than a year after (BOC) Aviation signed a purchase agreement for 50 A320 family airplanes.
October 2013: (BOC) Aviation has named Gerard Kenneally as Chief Technical Officer (CTO).
(EVA) Air will lease 6 A321s from (BOC) Aviation (SIL), for delivery between March and August 2015. (EVA), which earlier this summer joined the Star (SAL) Alliance, is planning to use the (CFM)-powered A321s to renew its narrow body fleet and expand its regional network.
(BOC) Aviation (SIL) has 35 A320s and 40 A321s on firm order for delivery between 2015 and 2019 following its latest deal announced on September 25. (SIL) (CEO), Robert Martin said the (EVA) deal marks the 1st placement from the orders.
November 2013: Volaris (VLS) has signed an agreement to lease 4 new A320s from (BOC) Aviation (SIL). All 4 A320s are scheduled to be delivered by May 2014, said the Singapore-based lessor. “(VLS) has come a long way in a short time, and these lease agreements with (BOC) Aviation show how much further we want to go to expand our network and serve the growing number of customers,” said its Chief Financial Officer (CFO) Fernando Suarez.
December 2013: (BOC) Aviation (SIL) has delivered the 1st of 6 Embraer E190 airplanes to (KLM) Cityhopper (AUK) under an operating lease agreement. The remaining 5 E190s will be delivered through April 2014.
April 2014: Lion Air (MLI) will lease 5 737s (comprising 4 737-800s and 1 737-900ER) from Bank of China subsidiary, (BOC) Aviation (SIL). Deliveries are scheduled for this year and in 2015. (BOC) Aviation (SIL) said the deal builds on the success of the November 2012 transaction for 6 737-800 and 3 737-900ER airplanes.
(BOC) has a portfolio of 238 modern airplanes operated by 55 airlines worldwide.
July 2014: Japanese lessor, (SMBC) Aviation Capital and Singapore-based lessor, (BOC) Aviation (SIL) placed orders at the Farnborough Airshow for a total of 158 Airbus A320 family airplanes.
(SMBC) signed a firm order for 110 A320neos and 5 A320ceos. (CEO) Peter Barrett said it was the largest-ever single firm order placed by a leasing company for narrow body airplanes. The order brings (SMBC)’s total A320 family orders up to 206 airplanes.
The ceo deliveries will start in 2016, while neo deliveries will begin in 2017. Total order list price value is $11.8 billion. (BOC) (SIL)’s order was for 43 A320 family airplanes made up of 7 A320neos and 36 A320ceos. The ceo deliveries will start immediately, (BOC) Aviation (CEO) Robert Martin said, while neo deliveries will begin in 2019. “We have customers actively seeking the ceo, particularly the A321, in the Asia-Pacific region, especially among people who don’t want to wait a number of years for the neo version,” Martin said.
Airbus (EDS) President & (CEO) Fabrice Brégier said there was now an industry bottleneck for the A321, but (EDS) is ramping up production to meet increased demand for this variant. Airbus (COO) Customers, John Leahy said that slots for A320neos was now “extremely tight.”
Asia-Pacific passenger traffic in the 1st half grew 5%, with regional airports seeing a 3.3% growth year-over-year. However, traffic in the region slowed in June when political unrest, currency and fuel price instability drove some major regional centers into negative growth.
Jakarta’s Soekarno-Hatta International Airport passenger numbers dipped 6.9% and Thailand’s Suvarnabhumi Airport saw a 12.1% drop in overall traffic. Both were impacted by increased costs from currency weaknesses, with Thailand’s recent coup resulting in slumping international passenger arrivals that added to Suvarnabhumi’s traffic decline.
Kuala Lumpur International Airport (which recorded a 21.5% growth in the year-ago period) saw a 3.8% increase in this year’s 1st half. Malaysia Airports Holdings Berhad attributed the slowdown to factors such as the slump in China traffic following the disappearance of Malaysia Airlines Flight MH370, political uncertainties in Thailand, increasing conflict in feeder markets across the Middle East, and capacity cuts by Singapore-based carriers feeding into the hub.
However, the weakened performance of the Southeast Asia hubs was offset by North Asia traffic, with Hong Kong International (4.0% growth) and Tokyo Haneda (7.6% growth) and Seoul’s Incheon (9.4% growth) bumping up overall figures.
(BOC) Aviation (SIL), which specializes in aviation markings and airplane film-based decoration, was appointed by Brussels Airlines ((DAT)/(EBA) to give an Airbus A330-300, Belgian National Football (soccer) Team flags and Red Devils colors (for the (FIFA) World Cup).
August 2014: Singapore-based lessor, (BOC) Aviation (SIL) has posted a +$163 million net profit for the 1st 6 months of 2014 and is on track to hit a full-year delivery record.
Over the 6 months ended June 30, (BOC) (SIL) received 37 new airplanes and sold 12, taking its total portfolio to 251 airplanes (232 owned and 19 managed). These are placed with 56 airlines worldwide and valued at $10.8 billion.
“We had a busy first half with a strong delivery momentum, putting us on target for another record year for deliveries,” (BOC) Aviation (SIL) (CEO) & Managing Director Robert Martin said.
It secured 2 new customers, Aeromexico (ASMX) and California-based WestAir, and delivered an Airbus A321 to Etihad Airways (EHD). (SIL) also completed deliveries of 6 Embraer E190s to (KLM) Cityhopper (AUK), and 12 airplanes (8 A330-300s and 4 A320s) to Iberia (IBE).
At the end of the period, (SIL) held $496 million in cash and had access to >$2.3 billion in unutilized credit facilities, after raising >$1.2 billion in new financing from the markets.
In July, (SIL) placed an order for 43 Airbus A320 family airplanes (7 A320neos and 36 A320ceos) at the Farnborough Airshow. Deliveries of the A320ceos will start immediately, while the A320neos are slated to arrive from 2019.
Lessor (BOC) Aviation (SIL) has placed an order for single- and twin-aisle Boeing airplanes valued at $8.8 billion at list prices.
The Singapore-based lessor has ordered 50 Boeing 737 MAX 8s, 30 Next-Generation 737-800s and 2 777-300ERs. The contract is the largest in (BOC) Aviation (SIL)’s 20-year history.
(BOC) Aviation (SIL) takes its name from the Bank of China (BOC), which acquired the company in December 2006. (SIL) describes itself as the largest airplane financing bank in the world.
“Following the successful placement of the 50 Next Generation 737 airplanes that we ordered in 2006, this is a continuation of our commitment to be responsive to airline customers, who are expanding or replacing older fleets,” (BOC) Aviation Managing Director and (CEO) Robert Martin said, adding “(SIL) expects healthy demand for the Next Generation 737 and 737 MAX variants in the next 7 years.”
September 2014: (BOC) Aviation (SIL) announced the delivery of the 1st of 20 Airbus A320 Family airplanes to ((TATA) - (SIA)) Airlines Limited, the newest Indian airline branded as Vistara (VST). The order includes 7 (NEO) variants.
"(SIL) is pleased to partner with Vistara (VST) by leasing 20 A320 airplanes over the next 4 years," said Robert Martin Managing Director & Chief Executive Officer (CEO) of (BOC) Aviation (SIL).
October 2014: (BOC) Aviation (SIL) is placing 2 Boeing 777-300ERs with (EVA) Air for delivery in early 2017. (EVA) has been a customer of (SIL) since 1994, making it 1 of (SIL)'s long-standing customers.
Robert Martin Managing Director & (CEO) of (SIL), said, "Our relationship with (EVA) Air dates back to our 1st year of operation, when we placed 2 Boeing 767 airplanes with (EVA). >2 decades, we have built a strong relationship, and are proud to have a continuing role in (EVA) Air's growth strategy."
(SIL) is the leading Asia-based airplane leasing company with a portfolio of 246 owned and managed airplanes operated by 58 airlines worldwide, and another 194 airplanes on firm order, as of September 30, 2014. The Company has one of the youngest fleets in the industry with an average owned airplane age of <4 years.
(BOC) Aviation, owned by the Bank of China, is headquartered in Singapore with offices in Dublin, London, and Seattle.
November 2014: News Item A-1: (BOC) Aviation (SIL) named David Walton as its new (COO).
News Item A-2: China lessor, Cheung Kong Holdings has announced it will pay a $2.02 billion in 4 transactions for 60 airplanes in an effort to enter the rapidly growing Asian airplane leasing market.
The 4 deals include purchasing 21 airplanes worth $816 million from (GECAS) (GEF), 10 airplanes valued at $492 million from (BOC) Aviation (SIL), and 14 airplanes worth $584.2 million from Jackson Square Aviation. Cheung Kong will also form a joint venture (JV) with the airplane leasing unit of Japan’s Mitsubishi Corporation to buy 60% stakes of 15 airplanes for an investment of $132 million.
The transactions are in line with the company’s strategy to further develop its airplane ownership and leasing business, the lessor said. It also noted the airplane leasing business can bring long-term stable revenue for the company.
Cheung Kong Holdings is owned by Li Ka-shing, known as Asia’s richest man.
In August, Cheung Kong confirmed the company was in talks to buy airplanes from private equity firm, Terra Firma-owned lessor, (AWAS) Aviation Capital (AWW), in a deal worth about $5 billion.
December 2014: News Item A-1: (BOC) Aviation (SIL) appointed Chris Gao as (CCO) for Asia-Pacific and the Middle East. Gao has held various senior positions in the Bank of China (BOC)’s head office.
News Item A-2: (BOC) Aviation (SIL) has finalized an order for 2 additional Boeing 737-800s, valued at $186 million at current list prices. The order is a part of (BOC) Aviation (SIL)’s effort to grow its portfolio of fuel-efficient airplanes.
“Building on our order of 80 737 airplanes earlier this year, these 2 additional Next-Generation 737s enable us to respond to demand from airline customers which are expanding or replacing older fleets,” (SIL) Managing Director & (CEO) Robert Martin said. “The 737 is known for its operational and fuel efficiency, and (SIL) expects continued healthy demand for the Next Generation 737 and 737 MAX.”
January 2015: (BOC) Aviation (SIL) has signed a firm order with (CFM) International for (CFM56) engines to power 10 new A320s, part of its existing order with Airbus (EDS).
“This new engine order signifies our continued confidence in (CFM56)-powered A320 airplanes, delivering a reliable airframe and engine combination to our global customer base,” (BOC) Managing Director & (CEO) Robert Martin said as he announced the deal.
(BOC) Aviation (SIL), which is owned by the Bank of China, has a portfolio of 246 owned and managed airplanes operated by 58 airlines worldwide, with a further 194 airplanes on firm order, as of September 30, 2014. Average age of the (BOC) portfolio of airplanesS is less than <4 years.
May 2015: (BOC) Aviation named Volker Fabian as Executive VP Airline Leasing & Sales for Europe & Africa, based in Dublin.
October 2015: News Item A-1: "The Bank of China (BOC) (SIL) Votes for (IPO) of Aviation Leasing Unit in Hong Kong" by Matthew Miller, Shu Zhang, "Reuters", October 18, 2015.
The Bank of China (BOC) Ltd, the country's 4th biggest commercial bank, has voted to spin off its aviation leasing unit in a Hong Kong share sale, the lender said to the Shanghai Stock Exchange.
(BOC) Aviation Pte Ltd will raise funds by selling <40% of the firm, through a listing of new and old shares on the main board of the Hong Kong Stock Exchange.
The bank will sell 90% of the offer to international investors and 10% to Hong Kong investors, while the bank will remain the controlling shareholder of the leasing firm, it said. The fund raised will be used for purchasing new aircraft and supplement working capital.
The plan was approved unanimously by the Bank of China's board of directors. The statement did not discuss the timing of the share issue or the amount to be raised. (BOC) Aviation is 1 of the world's biggest aviation leasing operators. Bank of China in its interim report said the unit owned 236 airplanes and managed 20 other airplanes by the end of June.
(BOC) Aviation (SIL) held total assets of US$11.4 billion and net assets of US$2.1 billion, and recorded a profit after tax of +US$309 million in 2014, the Bank of China said in its annual report.
The unit also maintains a sizable capital management program, converting US$5 billion Euro Medium Term Note program into a Global Medium Term Note program during the 1st half of the year.
(BOC) Aviation this year also issued its inaugural US$750 million senior notes in the USA, and completed 2 private placements, including a S$145 million 10-year senior unsecured fixed rate note, according to the bank's interim report.
News Item A-2: (BOC) Aviation (SIL) is to sell 24 aircraft: 2 Boeing 777s, 2 Airbus A330s, 11 A320 family aircraft, 7 737NGs and 2 Embraer E190s to Shenton Aircraft Investment.
(BOC) Aviation (SIL) announced the agreement on October 16, covering a portfolio which is on lease to 21 airlines in 18 countries.
Shenton Aircraft Investment has issued 2 tranches of notes (valued at $747.4 million and $60.5 million, respectively) to finance the deal. “The portfolio has a weighted average age of 4.6 years and weighted average remaining lease term of 5.7 years, based on weighted average appraised values,” (BOC) Aviation (SIL) said, adding that it will continue to manage the portfolio.
(BOC) Aviation (SIL) has 253 owned and managed aircraft, operated by 59 airlines in 29 countries. It also has commitments to acquire another 203 aircraft.
November 2015: News Item A-1: (BOC) Aviation (SIL) delivered the 1st of 3 Boeing 737-800 airplanes to Pegasus Airlines (PGS). The remaining 2 are scheduled for delivery within the next 3 months.
News Item A-2: (BOC) Aviation (SIL) has added its 1st 2 new Boeing 787-8 to its fleet. Both wide body airplanes have been placed on long-term leases to Kenya Airways (KEN) following the sale and leaseback transaction between the 2 companies.
News Item A-3: (BOC) Aviation (SIL) has placed an order for 11 (CFM56)-powered Boeing 737-800s and 11 (LEAP-1B)-powered 737 MAX 8s, scheduled for delivery between 2018 and 2021.
Announcing the deal on November 24, (BOC) Aviation (SIL) said the airplanes would be used to boost its order book and meet customer demand. “This order demonstrates our continued confidence in the Next Generation 737 airplanes for its proven high performance, reliability, and asset value. The Next Generation 737 economics are very attractive to our customers. With the 737 MAX, we are investing in new technology airplanes to meet our customers’ long-term fleet planning requirements,” (BOC) Aviation Managing Director & (CEO) Robert Martin said.
This latest deal marks a follow-on from the 50 737 MAX 8s and 30 737-800s that (BOC) Aviation (SIL) ordered in August 2014, along with a pair of 777-300ERs. Its 1st 737 MAX from the 2014 order is due to arrive in 2019.
On September 30, (SIL) had committed to acquire 203 airplanes, to boost its existing portfolio of 253 owned and managed airplanes, operated by 59 airlines worldwide.
In addition to this latest announcement, (SIL) has ordered 167 737s to date, including 50 737 MAXs and 16 777s.
Both companies referred to the deal as an “order,” although Boeing (TBC) said it would be posted to its website “once finalized.”
December 2015: (BOC) Aviation (SIL) has placed an order for 18 Airbus A320neos and 12 A320ceos, valued at >$3 billion at list prices.
February 2016: Finnair (FIN)is to take 2 additional Airbus A321s on lease from (BOC) Aviation (SIL), firming up options from a letter of intent (LOI) it signed in December 2015.
“The aircraft are scheduled for delivery to (FIN) during the winter season 2017/2018. The lease agreements have a minimum term of 8 years,” (FIN) said.
In late 2015, (FIN) detailed plans to take four A321s from (BOC) Aviation (SIL) from the 1st half of 2017. These aircraft will be used for long-haul growth.
August 2016: China Airlines (CHI) will lease +6 additional Boeing 737-800s from (BOC) Aviation (SIL).
Singapore-based lessor (BOC) Aviation (SIL) Managing Director & (CEO) Robert Martin said the (SIL) lease demonstrates the continued demand for new airplanes in the Asia-Pacific region, which is a key driver of the company’s growth.
As of June 30, the SkyTeam (STM) Alliance member operates 19 Boeing 737-800s out of a total fleet of 107 airplanes.
Airplane lessor (BOC) Aviation (SIL) owns, manages or has on order a fleet of 483 airplanes leased to 64 airlines in 31 countries as of June 30.
On May 17, (CHI) took delivery of its 10th Boeing 777-300ER, which features a co-branded livery with the USA manufacturer (TBC).
November 2016: (BOC) Aviation (SIL) has delivered a Boeing 777-300ER to Air China (BEJ), the 1st in a batch of 5 airplanes leased to (BEJ) under a purchase-and-leaseback arrangement 1st announced in October.
The deal consists of 3 777-300ERs and 2 Airbus A330-300s, all of which will be delivered new from the manufacturers by the end of 2016.
The transaction will use all of the equity raised in (SIL)’s initial public offering (IPO) earlier this year. (SIL)’s Managing Director & (CEO) Robert Martin said the deal “adds popular, in-demand airplanes on long-term leases to our portfolio.” “This transaction also represents incremental capital expenditure in 2016, and we continue to focus on disciplined investing to grow our fleet in line with our current strategy.”
(BOC) Aviation (SIL) has a fleet of 484 airplanes owned, managed or on order.
December 2016: (BOC) Aviation Limited ("BOC Aviation (SIL)" or "the Company") is pleased to announce that it has ordered 5 new Airbus A320-200 aircraft, all of which are scheduled for delivery in 2017.
The order reflects continued demand among our customers for these single-aisle aircraft,which remain amongst the world's most popular and efficient. "(BOC) Aviation (SIL) is ordering additional A320 aircraft to meet airline customer demand for this popular model," Vice Chairman & Deputy Managing Director Wang Genshan, said. "The A320's reliability and fuel-efficiency makes it one of the most widely used aircraft worldwide and it remains a core component of our fleet."
(SIL) is one of Airbus (EDS)' top 10 customers globally. Following this latest purchase agreement, (SIL)'s cumulative orders to date for new Airbus aircraft have reached a total of 316 aircraft, comprising 304 aircraft from the A320 family, including 67 A321 aircraft, and 12 A330 aircraft.
February 2017: (BOC) Aviation (SIL) delivered the 1st of 6 new (V2500)-powered Airbus A321s on lease to Finnair (FIN).
March 2017: Singapore-headquartered lessor, (BOC) Aviation (SIL) has placed an order for 13 Boeing 737 MAX 8s.
(SIL) Managing Director & (CEO) Robert Martin said the airplanes were selected for their lower operating costs and fuel efficiency. (SIL) will use the 737 MAX 8s to build its future delivery pipeline.
Including this latest transaction, (SIL) has ordered a total of 331 Boeing airplanes, including 209 737NGs and 74 737 MAX 8s.
This is the 2nd recent aircraft order from (SIL) which announced a deal for +2 more Airbus A320-200s on March 17.
(BOC) Aviation (SIL) has a portfolio of 483 aircraft (owned, managed and on order). As of December 31, 2016, its customer base spanned 68 airlines in 32 countries.
April 2017: Singapore-based lessor (BOC) Aviation (SIL) has placed 2 new Boeing 737-800s with Japan’s (ANA) Holdings, (SIL) said April 10.
The 2 airplanes will be delivered in the 2nd half of 2018.
“This lease placement further demonstrates the sustained demand for reliable and fuel-efficient single-aisle Boeing airplanes in the Asia Pacific region,” (BOC) Aviation Managing Director & (CEO) Robert Martin said. “We remain committed to working closely with (ANA) to support its future fleet requirements.”
(ANA) has >30 737-800s in its fleet, together with around 7 737-700s.
May 2017: (BOC) Aviation has ordered 4 Airbus A320neo family aircraft (including A320 and A321 variants), +2 A330-900 wide bodies. All 6 aircraft have been committed for lease to Portugal’s flag carrier, (TAP) Portugal. The aircraft will be delivered from 2018 - 2020.
“This aircraft placement demonstrates our ability to provide a comprehensively tailored solution built around new-technology Airbus (EDS) aircraft and including both single-aisle and twin-aisle categories,” (BOC) Aviation (CCO)-Europe, Americas and Africa, Steven Townend said. “(TAP) Portugal represents yet another new European customer, which will expand our globally diversified customer portfolio even further,” Townend added.
(TAP) VP Finance Teresa Lopes described the lease as an important plan to improve (TAP)’s long-term profitability. “(TAP)’s fleet renewal plan, which includes 53 brand new Airbus neo family aircraft, is a foundational element of our business strategy. (BOC) Aviation (SIL)’s ability to design innovative solutions to help finance new aircraft was very important for (TAP),” Lopes said.
Star (SAL) Alliance member (TAP) Portugal carried 11.7 million passengers last year.
Meanwhile, (BOC) has also announced a purchase-and-lease back transaction with Turkish Airlines (THY) for a Boeing 777-300ER that takes (BOC) Aviation’s deliveries scheduled for 2017 to a record 80 aircraft. The new addition to (BOC)’s portfolio takes its owned and managed fleet over the 300 mark.
“Based on current announced deliveries for this year, (BOC) Aviation is expected to be the world’s most active investor in new mainline aircraft, with 80 aircraft already delivered or scheduled for delivery in 2017,” Managing Director & (CEO) Robert Martin said.
June 2017: News Item A-1: "(BOC) Aviation Orders 1st Boeing 787-9s"
Alan Dron, June 30, 2017.
Singapore-based lessor (BOC) Aviation (SIL) has ordered 4 787-9s, its 1st order for this variant of the twin-aisle Boeing airplanes All 4 airplanes have been placed on long-term leases with Air Europa (ARE)_ and are scheduled to be delivered to (ARE) in 2019. The 787-9s will be powered by Rolls-Royce (RRC) (Trent 1000)s.
(ARE) is a new customer for (BOC) Aviation (SIL). (ARE) already has 8 787-8s in the fleet, which are replacing Airbus A330-200s and A330-300s for long-haul destinations, while the bulk of its short- and medium-haul fleet is composed of Boeing 737-800s. The new 787-9s will be used to help further (ARE)’s expansion plans. (ARE) also has a large batch of 737 MAX 8s on order.
(BOC) Aviation (SIL) Managing Director & (CEO) Robert Martin noted that the 787-9 order was also (SIL)'s 1st for the (Trent 1000). “This deal forms part of the growth strategy of Air Europa (ARE), which will see our Boeing 787 operations grow to 24 airplanes by 2022.”
August 2017: Continuing sound fundamentals in the airline industry helped spur lessor (BOC) Aviation (SIL) to an improved 2017 1st-half result compared to the year-ago period.
(SIL) turned in a (1H) net profit of +$240 million, up +13% year-over-year (YOY). Total revenues and other income rose +16% (YOY) to $670 million.
(SIL)’s net book value of airplanes, including assets held for sale, increased +25% (YOY) to $12.1 billion. In the 2017 (1H), the company also raised >$1 billion in new financing.
As of June 30, (BOC) Aviation (SIL) had a portfolio of 297 owned and managed airplanes, with an average aircraft age of 3.1 years and an average remaining lease term of 7.8 years for the owned airplanes fleet. It also had an orderbook of 196 airplanes scheduled for delivery over the period from July 1, 2017 to 2021. This figure includes all commitments to purchase airplanes, including those where an airline customer has the right to acquire the airplanes.
Over 2017 (1H), (BOC) Aviation (sil) took delivery of 37 airplanes, including 3 acquired by airline customers on delivery. “Our industry continues to be characterized by sound fundamentals, evident in the growth rate of passenger travel demand.”
“(IATA) reported a +7.9% rise in (RPK)s in the 1st half of 2017 (+2% higher than the long-term rate of demand growth of +5%). (IATA) also recently lifted its global 2017 airline profit forecast by +6%, to $31.4 billion, driven primarily by this higher rate of demand growth, strong expected load factors and continuing low oil prices.
“Globally, airline load factors have also risen as capacity growth has been reined in by operator constraint and by delivery delays as airframe manufacturers adjust to shortages of interior components and issues with engines, especially for some new-technology airplanes. This includes 2 of our Airbus A320neo aircraft that were originally scheduled for delivery in (Q4) 2017 and will now be delivered in 2018,” (SIL) said.
October 2017: (BOC) Aviation (SIL) signed 26 lease agreements in (3Q) 2017 (vs 28 in (3Q) 2016) and ended the quarter with portfolio of 268 owned and 34 managed aircraft.
January 2018: Fast-expanding (BOC) Aviation (SIL) took delivery of 74 aircraft in 2017 and added a further 48 to a pipeline of future acquisitions stretching to 2021, Managing Director & (CEO) Robert Martin said in an operational update. This was (SIL)-based lessor’s largest aircraft portfolio growth since 2009. (SIL), a subsidiary of the Bank of China (BOC), has 287 owned and 31 managed aircraft on its books, with 173 more on order.
Click below for photos:
SIL-737 MAX 10 2017-11.jpg
SIL-737 MAX 777-300ER
SIL-737-800 - 2014-12-Z
SIL-737-800 737 MAX 8 - 2015-11.jpg
SIL-A320neo - 2013-01
SIL-A320neo - 2015-12.jpg
30 ORDERS 737-800 (CFM56-7B):
33 ORDERS 737-800 (CFM56-7B) (OPTIONS CAN BE 737-700s/-800s/-900Xs):
11 ORDERS (2018-02) 737-800 (CFM56-7B):
2 +5 ORDERS 737-800 (CFM56-7B), 12 YR LST (JPL).
10/10/10 ORDERS (2009-02) 737NG WITH 737-800 AS BASELINE.
30 ORDERS 737 MAX 8:
11 ORDERS (2019-02) 737 MAX 8 (LEAP-1B):
13 ORDERS 737 MAX 8 (SIL) LSD.
2 747-400F, LST (AAR) (1997-03).
2 767-33AER (CF6-80C2) (603-27918, /96; 611-28147, /96), LST (ALI) 1996-04.
5/10 ORDERS 777-200ER (TRENT 89B) (28411 LST (MAS) 8/98), 28415 ST OASIS INTNL LSG 2001-04.
1 777-200, LST (KAL) 1998-12.
2 777-300, LST (EAD).
2 777-300ER, 12 YR LST (ACN).
8 ORDERS (2012-08) 777-300ER (GE90-115BL), LST (TII).
2 ORDERS 777-300ER:
58 +40 ORDERS A320 FAMILY:
3 ORDERS A319 (V2500):
50 ORDERS (2014-06) A320 FAMILY AIRPLANES, INCLUDING 25 A320neo FAMILY (A320/A321 ceos/neos):
13 ORDERS A320ceo (CURRENT ENGINE OPTION) AND 12 ORDERS A320neo (NEW ENGINE OPTION).
43 ORDERS A320 FAMILY AIRPLANES, INCLUDING 35 A320ceo AND 7 ORDERS A320NEO:
12 ORDERS A320ceo:
19 + 23 ORDERS A320 (V2500).
7/10 ORDERS A320 (CFM56-5B).
18 ORDERS A320neo:
2 +4 ORDERS A321 (V2500).
11 OPTIONS A320/A321.
5 ORDERS (2012-02) A330-200F (TRENT 700).
4 ORDERS A380.
15 ORDERS (2012-10) EMBRAER E190, 112Y:
4 EMBRAER E195, TO BE LSD TO (AZU) (2012-04).
20 ORDERS (COMAC) (CCC) C919:
Click below for photos:
SIL-1-ROBERT MARTIN - 2007-12
SIL-4-GERARD KENNEALLY - 2013-10
MATTHEW SAMUEL, CHAIRMAN.
ROBERT MARTIN, MANAGING DIRECTOR, & CHIEF EXECUTIVE OFFICER (CEO).
DAVID WALTON, CHIEF OPERATING OFFICER (COO) (2014-11).
FERNANDO SUAREZ, CHIEF FINANCIAL OFFICER (CFO).
STEVEN TOWNEND, DEPUTY MANAGING DIRECTOR & CHIEF COMMERCIAL OFFICER (CCO).
VOLKER FABIAN, EXECUTIVE VP AIRLINE LEASING & SALES, EUROPE & AFRICA (BASED IN DUBLIN, IRELAND) (2015-05).
CHRIS GUENER, SENIOR VP TECHNICAL.
GERARD KENNEALLY, CHIEF TECHNICAL OFFICER (CTO) IN DUBLIN (2013-10).
CHRIS GAO, CHIEF COMMERCIAL OFFICER (CCO) ASIA-PACIFIC & THE MIDDLE EAST (2014-12).
STEVEN TOWNEND, CHIEF COMMERCIAL OFFICER (CCO) EUROPE, AMERICAS & AFRICA.
ALISTAIR GREIG, HEAD OF COMMERCIAL CONTRACTS (2003-04).
DAVID FARRELL, HEAD OF RISK MANAGEMENT, EX-(GEF) (2006-07).
REMI LE MEUR, VP MARKETING, EUROPE, & AFRICA (2011-02).
LIM SIN JIN, PROJECTS ENGINEER.