BOC Aviation

BOC Aviation is a Singapore-based aircraft operating leasing company whose business is centered on acquiring commercial aircraft and placing them with airlines around the world under operating leases. The company is headquartered in Singapore and maintains offices in Dublin, London, New York and Tianjin, giving it a presence across the principal markets for airline customers, aircraft manufacturers, aviation finance and asset management. The company began in 1993 as Singapore Aircraft Leasing Enterprise Pte. Ltd., commonly known as SALE. It was established as a joint venture between Singapore Airlines and Boullioun Aviation Services, a United States aircraft operating lessor. SALE acquired its first aircraft in 1995 and placed its first Airbus order in 1996. During its early expansion, Temasek Holdings and the Government of Singapore Investment Corporation, now generally known as GIC, invested in the business. By 2000, the company was described as Airbus's largest Asian customer for single-aisle aircraft, reflecting its role in the development of the region's aircraft-leasing market. SALE's ownership changed over time. In 2004, the stake associated with Boullioun Aviation Services was transferred to its German parent, WestLB AG, while Singapore Airlines, GIC and Temasek remained shareholders. In 2006, Bank of China acquired the company for US$965 million. Following the acquisition, the business was renamed BOC Aviation on 2 July 2007 and became part of Bank of China's broader financial-services group. BOC Aviation's core model is asset-backed aviation finance. Rather than operating aircraft itself as an airline, it owns or arranges aircraft assets and leases them to airline customers. Operating leasing can provide airlines with fleet capacity while avoiding the need to fund the full purchase price of each aircraft or retain all residual-value risk. For the lessor, returns depend on aircraft selection, lease pricing, customer quality, financing, maintenance and remarketing capabilities, as well as the longer-term performance of the aviation market. The company also provides aircraft asset-management services connected with its portfolio and customer relationships. The company converted to BOC Aviation Limited on 12 May 2016 and listed on the Main Board of the Stock Exchange of Hong Kong on 1 June 2016 under stock code 2588. The listing provided a public-market identity for a business that had previously operated as a privately held subsidiary and increased its visibility among international aviation-finance investors. BOC Aviation is described as the largest aircraft operating lessor headquartered in Asia when measured by the value of owned aircraft. Its customer and aircraft activities are international, spanning narrow-body and wide-body commercial aircraft and involving airlines in multiple regions. A representative transaction announced in 2019 involved a purchase-and-leaseback arrangement with Qatar Airways for three new Airbus A350 twin-aisle aircraft, scheduled for delivery by the end of the third quarter of that year. Such transactions illustrate the company's use of sale-and-leaseback structures: an airline receives capital tied to aircraft it has ordered or acquired, while the lessor obtains a leased aviation asset. BOC Aviation's present identity therefore combines an Asian financial-group ownership base with a globally oriented aircraft portfolio, airline customer network and aviation-asset-management platform.

BOC Aviation traces its origins to 1993, when Singapore Aircraft Leasing Enterprise Pte. Ltd. was created as a joint venture between Singapore Airlines and Boullioun Aviation Services, a US-based aircraft operating-leasing company. The venture was formed during a period when airlines and financial institutions were increasingly using operating leases to obtain aircraft capacity without purchasing every aircraft outright. Its Singapore base placed the company close to the rapidly expanding Asia-Pacific aviation market. SALE acquired its first aircraft in 1995 and made its first Airbus order in 1996. These steps established the company as an owner and lessor of commercial aircraft rather than an airline operator. In 1997, Temasek Holdings and the Government of Singapore Investment Corporation invested in the company. By 2000, SALE was reported to be Airbus's largest customer for single-aisle aircraft in Asia, demonstrating the scale of its early narrow-body strategy and its importance to the region's fleet-growth cycle. The shareholder structure changed in July 2004. Boullioun Aviation Services' 35.5% interest was transferred to its German parent, WestLB AG. Singapore Airlines continued to hold 35.5%, while GIC and Temasek each retained 14.5%. SALE was described as Asia's largest aircraft-leasing company in 2006. In December of that year, Bank of China acquired the business for US$965 million. The acquisition connected the lessor to one of China's major banking groups and provided the basis for a more explicitly international BOC Aviation identity. On 2 July 2007, Singapore Aircraft Leasing Enterprise was renamed BOC Aviation. The rebranding aligned the company with its new parent while preserving its Singapore operating base and aviation specialization. Its business continued to focus on aircraft ownership and operating leases, supported by relationships with airlines, manufacturers, financiers and other participants in the aviation ecosystem. The company was converted to BOC Aviation Limited on 12 May 2016. It then listed on the Main Board of the Stock Exchange of Hong Kong on 1 June 2016 under the code 2588. The listing marked a further institutional stage in the company's development and gave public-market investors access to an aircraft-leasing business controlled by Bank of China. BOC Aviation operates internationally from Singapore and offices in Dublin, London, New York and Tianjin. Its business includes aircraft operating leases and related asset-management activities. The company is characterized as the largest aircraft operating lessor headquartered in Asia by the value of owned aircraft. Its portfolio and customer base are linked to the global commercial-airline market, where aircraft values, lease rates, airline credit quality, delivery schedules, maintenance conditions and residual values all influence performance. In August 2019, BOC Aviation signed a purchase-and-leaseback agreement with Qatar Airways covering three new Airbus A350 aircraft. The transaction illustrated the company's role in providing airline capital while retaining aircraft as leased assets. Overall, BOC Aviation's history is the transition from a Singaporean joint venture into a Bank of China-owned, Hong Kong-listed global aircraft lessor.

1. 2019Qatar Airways A350 sale-and-leaseback

   BOC Aviation agrees to purchase and lease back three new Airbus A350 aircraft from Qatar Airways.

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2. 2016Corporate conversion and Hong Kong listing

   The company becomes BOC Aviation Limited on 12 May and lists on the Hong Kong Stock Exchange Main Board on 1 June under code 2588.

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3. 2007SALE becomes BOC Aviation

   The company adopts the BOC Aviation name on 2 July.

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4. 2006Acquisition by Bank of China

   Bank of China acquires Singapore Aircraft Leasing Enterprise.

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5. 2004Shareholder restructuring

   Boullioun Aviation Services' stake is transferred to its German parent, WestLB AG, while the other principal shareholders retain their positions.

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6. 1997Temasek and GIC invest

   Temasek Holdings and the Government of Singapore Investment Corporation invest in the aircraft-leasing company.

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7. 1996First Airbus order placed

   The company places its first order with Airbus.

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8. 1995First aircraft acquired

   SALE acquires its first aircraft, beginning its commercial aircraft ownership and operating-leasing activity.

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9. 1993Singapore Aircraft Leasing Enterprise is founded

   Singapore Aircraft Leasing Enterprise Pte. Ltd. is established as a joint venture between Singapore Airlines and Boullioun Aviation Services.

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A globally oriented aircraft operating lessor with an Asian headquarters and ownership by Bank of China.

• Commercial aircraft operating leasesAircraft leasing1995

  BOC Aviation acquires commercial aircraft and leases them to airline customers for scheduled operating periods. The lessor retains ownership of the aircraft while the airline obtains fleet capacity without funding the entire purchase directly. This model requires aircraft selection, lease structuring, customer assessment, financing, maintenance oversight and eventual remarketing or redeployment of the aircraft.

• Aircraft purchase-and-leasebackAviation finance

  In a purchase-and-leaseback transaction, BOC Aviation purchases aircraft from an airline and leases the aircraft back to that airline. The structure can release capital for the carrier while allowing it to continue using the aircraft. The 2019 agreement involving three Airbus A350 aircraft for Qatar Airways is an example of this type of transaction.

• Aircraft asset managementAsset management

  The company provides asset-management activities associated with aircraft ownership and leasing. These activities can include portfolio oversight, lease administration, aircraft delivery and return coordination, maintenance-related monitoring and decisions concerning the future placement or disposition of aircraft, although the supplied reference material does not enumerate a complete service catalogue.

• 2019Three-aircraft Qatar Airways sale-and-leasebackOther

  Qatar Airways had three new Airbus A350 twin-aisle aircraft scheduled for delivery.

  What changed. BOC Aviation agreed to purchase the aircraft and lease them back to Qatar Airways, with delivery planned by the end of the third quarter.

  Aftermath. The agreement expanded BOC Aviation's aircraft portfolio and demonstrated its use of sale-and-leaseback financing with an international airline.

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• 2016Public-market listingStrategy

  After operating as a Bank of China-owned aircraft lessor, the company undertook a corporate conversion and prepared for a Hong Kong listing.

  What changed. The company became BOC Aviation Limited and listed on the Main Board of the Stock Exchange of Hong Kong under stock code 2588.

  Aftermath. BOC Aviation gained a listed-company structure and a public-market presence while remaining controlled by Bank of China.

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• 2006Bank of China acquisitionM&A

  Singapore Aircraft Leasing Enterprise was an established Asian aircraft lessor when Bank of China acquired it in December 2006.

  What changed. Bank of China purchased the company and subsequently aligned its public identity with the BOC Aviation name.

  Aftermath. The acquisition made the aircraft lessor part of Bank of China's group and preceded its 2007 rebranding as BOC Aviation.

  Acquisition price. US$965 million (December 2006)

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• 2019BOC Aviation signs purchase-and-leaseback agreement with Qatar Airways for three Airbus A350 aircraft

  BOC Aviation agreed to purchase and lease back three new Airbus A350 twin-aisle aircraft from Qatar Airways, with deliveries planned by the end of the third quarter of 2019.

  Product launch
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• 2016BOC Aviation lists on the Main Board of the Hong Kong Stock Exchange

  BOC Aviation became a publicly listed company on the Hong Kong Stock Exchange, trading under stock code 2588.

  Other
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• 2006Bank of China acquires Singapore Aircraft Leasing Enterprise

  Bank of China acquired Singapore Aircraft Leasing Enterprise, bringing the aircraft lessor into its group and establishing the ownership foundation for the BOC Aviation brand.

  M&A
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1. BOC Aviation
2. BOC Aviation official website