BOC Aviation has inked a purchase-and-leaseback deal with Qatar Airways, for three Airbus A350s that are expected to be delivered this quarter. These are powered by Rolls-Royce Trent XWB engines.
The aircraft have a list price of US$1.85 billion, although the final deal will represent a significant difference from the list price because of discounting and other factors, BOC Aviation said in the statement.
The aircraft are expected to be delivered next year.
“We are excited to support Qatar Airways’ fleet expansion plans with this popular new technology widebody aircraft from Airbus, which adds to our fleet of in-demand aircraft on long-term leases,” said Robert Martin, managing director and chief executive of BOC Aviation in a statement.
Based in Singapore and listed in Hong Kong, BOC Aviation is Asia’s largest aircraft lessor while its ultimate parent is Bank of China Group.
“This incremental capital expenditure is in line with our current strategy to grow our fleet through disciplined investment,” Martin said.
The transaction will be funded through cash on hand, the proceeds of loans or other borrowings by the company, or revenue generated from business operations. This is the second major transaction made by BOC Aviation this year.