Boeing on the Rise

Aircraft leasing company BOC (Bank Of China)—a Chinese state-owned global aircraft leasing concern—has announced that it has entered into an agreement with Boeing to purchase forty new Boeing 737 MAX 8 aircraft, deliveries of which are slated for 2027 and 2028.

BOC vice president David Walton stated: “We are pleased to continue to build on our existing relationship with Boeing, with this forty-aircraft incremental order for the fuel-efficient Boeing 737 MAX 8 aircraft.  The incremental aircraft takes our total 737 MAX 8 orderbook with Boeing to eighty aircraft. We look forward to continuing to provide one of the industry’s most technologically advanced aircraft for delivery on lease to our airline customers, to support their sustainable growth over the balance of this decade.”

Boeing vice president of global leasing sales Ryan Weir added: “We are proud that BOC Aviation continues to invest in the 737-8 with its industry-leading versatility and ability to fly almost any short and medium-haul market profitably. We look forward to more opportunities to expand our relationship to support BOC Aviation and its customers.”

As airlines pursue recovery to pre-COVID passenger volumes and revenues, the demand for new, fuel-efficient, narrow-body aircraft has risen dramatically. Supply-chain disruptions, however, have slowed deliveries from aircraft manufacturers such as Airbus and Boeing. The resultant gap between demand and supply has bolstered the aircraft leasing market to an unprecedented degree—as evinced by the fact that 81 airlines in 38 countries currently lease BOC owned and managed aircraft.

In addition to the forty confirmed 737 MAX 8 orders, BOC has reportedly amended an extant purchase agreement with Boeing, thereby bringing the total number of 737 MAX jets the company has on order to a robust eighty aircraft.

Boeing’s 737 MAX 8—in the tradition of the 737 MAX family—affords air-carriers fuel-efficiency, ecological accountability, reliability, flexibility, and operational economy beyond that of legacy narrow-body airliners. The 737 MAX 8’s 3,041-nautical-mile range exceeds that of its predecessor, the 737 Next Generation (NG) series, by nearly 520-nautical-miles—the distance by which Chicago and Atlanta are separated. The MAX 8’s superior range is attributable to an eldritch combination of engine and aerodynamic improvements that cut fuel-burn (relative the NG series) by twenty-percent.

Mammoth orders from United Airlines (200 aircraft) and Delta (100 aircraft), in conjunction with sizeable deals struck with smaller carriers such WestJet (42 aircraft) and lessors the likes of BOC, have made Boeing’s 2022 a span Frank Sinatra would call a “very good year.” In all, the Arlington, Virgina (nee Seattle, nee Chicago)—based airframer will end 2022 sitting atop a kingly sum of 5,321 pending orders. Subject orders comprise: 737 - 4,277; 767 -111; 777 - 445; and 787 – 488. What’s more, 2023 holds the possibility of a massive deal with Air India. The New Delhi-based Indian flag carrier is in talks with Boeing and Airbus concerning a fleet renewal and expansion program that could entail as many as five-hundred aircraft.

FMI: www.boeing.com