BOC Aviation Signs Second Purchase-and-Leaseback Deal with Southwest Airlines
06 Apr 2009
BOC Aviation has entered into a second purchase and leaseback (PLB) transaction with Southwest Airlines, less than four months after signing the first deal for 10 aircraft in December last year. The transaction comprises six Boeing 737-700 aircraft on lease for an average period of 14 years. The first tranche of three aircraft closed on 2 April, and the second tranche is expected to close in the second quarter of 2009, subject to documentation and customary closing conditions, when the last aircraft is delivered from Boeing's facility in Seattle.
“With a strong financial position and counter-cyclical strategy, we are actively growing our fleet amidst the global economic downturn,” said Steven Townend, Chief Commercial Officer and Deputy Managing Director of BOC Aviation. “Southwest is one of the world's leading low-cost carriers and we are delighted to have the opportunity to work with this airline again.”
BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 108* modern aircraft operated by airlines worldwide. In addition, the Company has 70 aircraft on firm order for delivery through to 2013. BOC Aviation has one of the youngest fleets in the industry with an average aircraft age of less than four years.
BOC Aviation is 100% owned by Bank of China, the third largest bank in the world**.
*Excluding the second tranche of three aircraft.
**Based on market capitalization as at 31 March 2009.