BOC Aviation Signs Six Aircraft Purchase-and-Leaseback Deal with Cathay Pacific
16 Sep 2009
BOC Aviation has signed agreements with Cathay Pacific for the purchase and leaseback deal of six Boeing 777-300ER aircraft. The aircraft are scheduled to be delivered new from the manufacturer’s facility in Seattle from the fourth quarter of 2009 until the second quarter of 2011. All aircraft will be on long-term leases.
“This transaction completes the first phase of our purchase and leaseback programme under our counter-cyclical strategy,” said Robert Martin, Managing Director & Chief Executive Officer of BOC Aviation. He added that 24% of future delivery commitments are destined for China and widebody aircraft will account for around 16% of the Company’s fleet by mid-2013 when all current orders and committed purchase and leasebacks have been delivered.
Commenting on the transaction, Steven Townend, Deputy Managing Director and Chief Commercial Officer of BOC Aviation, said “This transaction is a milestone for us as it marks the first time these two leading aviation companies have worked together. We are pleased to welcome Cathay Pacific as a customer and look forward to further developing this partnership.”
Cathay Pacific's Chief Executive, Tony Tyler, said “This landmark agreement with BOC Aviation is consistent with our cash-preservation priority during this difficult time. It also dovetails with our long-term fleet-management strategy to maintain an appropriate balance between owned and leased aircraft. As we have said repeatedly, Cathay Pacific has no intention to cancel aircraft orders. However, this deal with BOC Aviation will play a key role in our strategic plan by providing us with invaluable financial and operational flexibility."
BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 127 modern aircraft operated by airlines worldwide. In addition, the Company has 64 aircraft on firm order and 11 on committed purchase and leasebacks 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, one of the three largest banks in the world*.
*Based on market capitalization as at 30 June 2009.