BOC Aviation, one of the world's largest aircraft leasing firms, has announced a major purchase of 120 single-aisle planes from aerospace giants Airbus and Boeing. The acquisition is part of the Singapore-based company's strategic plan to expand its fleet to 1,000 aircraft by the end of the decade.

Details of the Order

The latest deal includes an order for 70 A320neo family aircraft from Airbus and 50 737 MAX 8 jets from Boeing. While the financial terms of the transaction were not disclosed, industry estimates suggest the Airbus order is valued at approximately $3.78 billion, while the Boeing purchase stands at around $2.72 billion, based on figures from aviation data provider Cirium Ascend.

Expanding the Fleet Amid Strong Market Demand

This move underscores the surging global demand for narrowbody aircraft, particularly among low-cost carriers that prioritize fuel-efficient, next-generation jets. BOC Aviation, which is majority-owned by the Bank of China, is capitalizing on this trend as it seeks to enhance its leasing portfolio.

As of December 2024, around 85% of BOC Aviation’s owned, managed, and on-order fleet consisted of narrowbody planes. The newly ordered Boeing aircraft are scheduled for delivery through 2031, while the Airbus jets will arrive by 2032.

Challenges in the Aircraft Supply Chain

Despite the strong demand for new aircraft, airlines worldwide have been grappling with delivery delays caused by labor strikes, regulatory scrutiny, and supply chain disruptions. These challenges have increased demand for leased aircraft, benefiting leasing firms such as BOC Aviation.

Financial Performance and Strategic Outlook

BOC Aviation recently reported a record net profit of $924 million for 2024, marking a 21% increase from the previous year. CEO Steven Townend emphasized the significance of the recent orders, stating that with this deal, the company now has commitments for over 140 Boeing 737-8 aircraft, the largest Boeing orderbook in its history. Additionally, BOC’s Airbus orderbook has expanded to around 200 aircraft.

The company remains on track with its ambitious goal of reaching 1,000 aircraft by 2030. As of the end of 2024, BOC Aviation owned and managed 467 aircraft, with 232 more on order.

This latest purchase further cements BOC Aviation’s position as a key player in the aircraft leasing market, strengthening its foothold in the growing single-aisle jet segment.