Friday, June 1, 2018

Boeing sells three Dreamliners to Chinese jet lessor BOC Aviation

Chinese aviation leasing company BOC Aviation Ltd. said Friday it has agreed to buy three new Boeing 787-9 Dreamliners.

The order is worth $845 million at current list prices and pushes the Singapore-based Bank of China aviation affiliate's total orders for Dreamliners to 14, BOC said in a filing with the Hong Kong Stock Exchange.

The deal supports Boeing's decision to boost Dreamliner production from 12 a month to 14 a month in 2019 and offers a bump in business to companies in the 787 supply chain in the Seattle region and around the world.

Boeing did not respond to a request for comment.

BOC said its board of directors approved the deal because it is in line with the growth strategy to build its balance sheet and rental revenues "by investing in modern, efficient, in-demand aircraft."

BOC Aviation Managing Director and CEO Robert Martin said all three jets have been placed on long-term leases with Spanish airline Air Europa. They're scheduled to be delivered in 2020.

“We are delighted to further our partnership with Air Europa, as it builds its longer haul capabilities,” Martin said in a news release.

Launched 12 years ago, Air Europa s the third-largest airline in Spain and the country’s first privately-owned company to operate domestic scheduled flights. Air Europa operates nearly 50 aircraft.

Air Europa is owned by the Globalia tourism group and has been a member of SkyTeam airline alliance since September 2007.

In March, BOC Aviation took over an order for six Dreamliners that had originally been placed by Norweigian Air Shuttle.

Under that deal, Norwegian leased the planes under a long-term operating lease with an option to buy them back.

BOC Aviation, which owns and operates a fleet of 291 jets and manages 30 more for their owners, backstopped another deal for Boeing jets a year ago.

Days after All Nippon Cargo of Japan canceled an order for two Boeing 747 freighters, fast-growing BOC Chinese scooped up the jumbos and assigned them to Russian carrier AirBridgeCargo Airlines on long-term leases.

Boeing invested $30 million in BOC Aviation 's shares when the leasing company went public in 2016.

The Boeing investment came after BOC Aviation placed a 2014 order for 71 Boeing 737 Max jets, the first of which was delivered two weeks ago to BOC customer Corendon Airlines, based in Turkey.

(Andrew McIntosh - Puget Sound Business Journal)

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