BOC Aviation signs purchase-leaseback agreements with Indigo for eight new A320 aircrafts
The aircraft will be powered by CFM Leap engines and are scheduled to be delivered in the second half of 2021.
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SINGAPORE: BOC Aviation Limited has signed purchase-and-leaseback agreements with InterGlobe Aviation Ltd (IndiGo) for eight new Airbus A320NEO aircraft. The addition of these eight A320NEO aircraft demonstrates our confidence in the future growth of the aviation market in India, said Riyaz Peermohamed, Chief Aircraft Acquisition & Financing Officer, IndiGo.
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. This incremental capital expenditure also reflects our disciplined investment strategy throughout the cycle, focused on building a portfolio of the latest technology aircraft, said BOC Aviation M
Global aircraft leasing company BOC Aviation on Monday said it has signed a purchase-and-leaseback agreements with InterGlobe Aviation for eight new Airbus A320NEO aircraft.Accordingly, these aircraft will be powered by CFM Leap engines and .
BOC Aviation signs purchase and leaseback agreement with IndiGo for 8 new Airbus A320neo aircraft
BOC Aviation Limited (“BOC Aviation” or the “Company”) is pleased to announce that it has signed purchase-and-leaseback agreements with InterGlobe Aviation Ltd. (“IndiGo”) 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.
Mr. Riyaz Peermohamed, Chief Aircraft Acquisition & Financing Officer, IndiGo, said: “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.”
Broker s call: InterGlobe Aviation (Buy)
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CMP: ₹1623.15
InterGlobe Aviation Ltd (Indigo) is one of the most efficient low cost carriers (LCC) with a market share of 43 per cent in Indian aviation sector.
Revenue declined by 51 per cent y-o-y, but on sequential basis revenue grew by 79 per cent q-o-q, led by improvement in passenger growth. Resumption of flight operations, cost rationalization and healthy cash positions is helping the company in tiding over crisis situation.
With passenger traffic gradually reaching to pre-Covid levels, revenue growth to normalize in FY22 led by better utilization of fleet and relaxation in price caps.
Management focus expansion of international footprints and deeper penetration into Tier 2-3 cities, to drive growth in near future. While replacement of old aircraft with 15 per cent more fuel efficient fleets will improve profitability in the medium term.