July 2 — A major aircraft leasing company, a subsidiary of Bohai Leasing, one of China’s largest aircraft lessors, has agreed to acquire an order for 11 Airbus A321Neo aircraft from a U.S.-based low-cost airline for an undisclosed price.
According to the agreement signed on June 30, the leasing firm will purchase the 11 aircraft through a subsidiary based in Beijing. The combined list price for these planes is estimated to be around $1.43 billion, though the final deal amount will depend on contractual terms.
This leasing company, operating out of Dublin and in which Bohai Leasing holds a 70 percent stake, ranks as the second-largest global commercial aircraft leasing firm.
Details on the financial terms of the deal have not been disclosed, and the lessor also did not specify the reasons behind the airline’s decision to sell the aircraft, which are scheduled for delivery between November this year and June next year.
The parent company of the airline, a publicly traded firm, reported a net loss of $137 million last year, with its debt-to-asset ratio nearing 93 percent by year-end. Its operating revenue was approximately $3.7 billion.
The purchase is expected to enable the leasing company to leverage robust demand in the aircraft leasing market and expand its ability to offer diverse fleet options to its airline customers, according to the announcement.
Shares of Bohai Leasing closed higher today, gaining 1.7 percent at CNY 4.22 (about 60 cents USD), increasing its year-to-date gains to 4 percent. Meanwhile, the broader market in Shenzhen declined by 3.9 percent.
By the end of last year, Bohai Leasing’s fleet comprised roughly 1,160 aircraft—660 owned and managed, with 500 on order—and served nearly 140 carriers across 61 countries, according to its annual report.