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IndiGo to lease eight A320neo planes from BOC Aviation

BusinessToday.In     March 1, 2021

Budget carrier IndiGo has inked purchase-and-leaseback agreements with BOC Aviation Limited for eight new Airbus A320neo aircraft. The aircraft will be powered by CFM Leap engines and are scheduled to be delivered in the second half of 2021, the Singapore-based aircraft leasing company said in a release on Monday.

"We are pleased to further strengthen our existing relationship with BOC Aviation. The addition of these eight A320neo aircraft demonstrates our confidence in the future growth of the aviation market in India," says Riyaz Peermohamed, Chief Aircraft Acquisition & Financing Officer, IndiGo.  

The airline had a fleet of 287 aircrafts, a net rise of 30 aircrafts on YoY basis and 5 on QoQ as of December 31, 2020. This includes 120 A320ceos, 111 A320neos, 30 A321neos and 26 ATRs. With its fleet of 287 aircraft, the airline operates over 1,100 daily flights and connects 60 domestic destinations and 6 international destinations.

Robert Martin, Managing Director and Chief Executive Officer, BOC Aviation, said: "We are delighted to partner once again with IndiGo, India's largest passenger airline, as we continue to support our airline customers to finance their aircraft deliveries."  

"This incremental capital expenditure also reflects our disciplined investment strategy throughout the cycle, focused on building a portfolio of latest technology aircraft," added Martin.

The A320neo (new engine option) is one of many upgrades introduced by Airbus to help maintain its A320 product line's position as the world's most advanced and fuel-efficient single-aisle aircraft family. The baseline A320neo jetliner has a choice of two new-generation engines (the PurePower PW1100G-JM from Pratt and Whitney and the LEAP-1A from CFM International) and features large, fuel-saving wingtip devices known as Sharklets.  

BOC Aviation is a leading global aircraft operating leasing company with 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 on December 31, 2020. BOC Aviation is listed on the Hong Kong Stock Exchange and has its headquarters in Singapore with offices in Dublin, London, New York and Tianjin.

Also read: IndiGo Q3 results: Loss narrows to Rs 620 crore, revenue down 50% on limited capacity utilisation

Also read: IndiGo to start selected domestic flights from T1 in Mumbai


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