Press Release

BOC Aviation Achieves Record Profit

06 May 2008

BOC Aviation has reported a net profit after tax of US$51 million for the 9 months ending 31 December 2007. 

It is the first time that the Company has reported results as BOC Aviation, having changed its name from Singapore Aircraft Leasing Enterprise after it was acquired by Bank of China (BOC) in December 2006.  The financial year end was changed from March to December last year to be in line with that of the BOC group.  On a 12-month basis, net profit after tax was a record US$81.4 million, an increase of 67.8% over the US$48.5 million earned from January to December 2006.

The strong performance underlined ongoing demand from airlines for new aircraft, especially in the single aisle category.  This has enabled the Company to enter into long term leases, both for new aircraft delivered during the year and also for future deliveries.  The five A330-200 freighter aircraft recently ordered direct from the manufacturer have also been placed on long term leases.   
 
Global investor appetite saw the Company complete the sale of six aircraft during the nine month period.  By actively managing the portfolio, BOC Aviation is able to maintain one of the youngest fleets in the industry, with average fleet age of 3.9 years.  In addition forward sales have been locked in for seven aircraft in 2008.

Since its acquisition, the Company has widened its product range, acting as debt arranger for airline financing provided by BOC.  This area of cooperation saw BOC Aviation and BOC London Branch secure a deal to provide the first Chinese-bank-arranged debt financing for British Airways for four A321 aircraft, and recently for two A330 aircraft for Lufthansa.

Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation, said the Company had taken full advantage of the favorable market conditions during 2007 to strengthen its balance sheet, reducing debt-to-equity to 3:1, and was now well positioned for coming challenges.

“BOC Aviation ended the year with a strong cash position, low debt-to-equity ratio and 100% of payments collected.  In addition, we have a US$1 billion unsecured debt facility from BOC to take advantage of opportunities which may arise in the coming year”.

BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 82 modern aircraft operated by airlines worldwide. In addition, the company has 58 aircraft on firm order for delivery through to 2013. 

BOC Aviation is 100% owned by Bank of China.