BOC Aviation Limited, headquartered in Singapore, and IndiGo, India’s largest airline, have announced a significant step in their partnership, revealing a finance lease agreement for the acquisition of 10 cutting-edge Airbus A320NEO aircraft. The collaboration is a strategic move to bolster IndiGo’s fleet, tapping into the advanced capabilities of these aircraft. The scheduled delivery for all ten planes, each powered by CFM LEAP-1A engines, is set for 2023, as confirmed by BOC Aviation.
This accord signifies a continued and robust relationship between the two entities. Steven Townend, the Deputy Managing Director and Chief Financial Officer of BOC Aviation, expressed enthusiasm about this new venture. He highlighted the company’s adeptness in employing diverse financing structures, further solidifying their commitment to sustainable expansion. “This showcases our ability to deploy alternative financing structures, to continue our long-term sustainable growth,” he said.
Riyaz Peer Mohamed, Chief Aircraft Acquisition and Financing Officer at IndiGo, echoed the sentiment of enhanced collaboration. He remarked, “We are pleased to enhance our partnership with BOC Aviation with the lease agreement for these 10 aircraft.”
The partnership between BOC Aviation and IndiGo is in line with the latter’s strategic objectives to amplify its presence across domestic and international markets. With India being a rapidly growing aviation hub, these new aircraft are poised to bolster IndiGo’s foothold in the region. “India is currently among the fastest-growing civil aviation markets in the world and these aircraft will help IndiGo consolidate its position in the region,” he said.
BOC Aviation stands as a prominent global player in the aircraft leasing sector, boasting a substantial fleet of 652 aircraft either owned, managed, or on order. As of June 30, 2023, this diverse fleet has been leased to 91 airlines across 42 countries and regions globally.
In parallel, IndiGo, a rapidly expanding low-cost carrier, has achieved remarkable growth in recent times. With over 300 aircraft in its fleet, the airline conducts approximately 1,900 daily flights, efficiently connecting 79 domestic destinations. The carrier is also poised to widen its international footprint, with plans to extend its network to 32 global destinations.
The collaboration between BOC Aviation and IndiGo signifies a strategic synergy aimed at capitalising on the thriving aviation market in India and beyond. This partnership not only solidifies IndiGo’s growth trajectory but also highlights BOC Aviation’s proficiency in delivering innovative financing solutions for sustainable aviation expansion.