IndiGo, BOC Aviation signs purchase-leaseback agreements for eight A320neo planes

IndiGo, BOC Aviation signs purchase-leaseback agreements for eight A320neo planes
Aircraft leasing firm BOC Aviation on Monday said it has signed a purchase-and-leaseback agreement with budget carrier IndiGo parent InterGlobe Aviation for eight new Airbus A320 neo planes. The aircraft, to be powered by CFM Leap engines, are scheduled to be delivered in the second half of 2021, a release said.

"We are delighted to partner once again with IndiGo as we continue to support our airline customers to finance their aircraft.

"This incremental capital expenditure also reflects our disciplined investment strategy throughout the cycle, focused on building a portfolio of latest technology aircraft deliveries," BOC Aviation Managing Director and Chief Executive Officer Robert Martin said.

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According to the Q3 FY21 earnings presentation, IndiGo had 287 aircraft in its fleet at the end of December 31, 2020. Of these, 272 were on operating lease, while the remaining 15 were owned/finance lease.

"We are pleased to further strengthen our existing relationship with BOC Aviation. The addition of these eight A320 neo aircraft demonstrates our confidence in the future growth of the aviation market in India," said Riyaz Peermohamed, Chief Aircraft Acquisition and Financing Officer, IndiGo.

With a fleet of 284 aircraft at present, the airline is operating over 1,100 daily flights, connecting to 60 domestic and six international destinations.

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Hong Kong Stock Exchange-listed and Singapore headquartered BOC Aviation has a fleet of 553 aircraft owned, managed and on order. Its owned and managed fleet was leased to 87 airlines worldwide in 39 countries and regions as of December 31 last year, as per the release.


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