BOC Aviation profits slip as revenues rise
Total revenues and other income at BOC Aviation rose 7 per cent to $1.107 billion in the six months to end June year-on-year while net profit after tax declined 21 per cent to $254 million. Profit before tax and charges for impairment of aircraft and financial assets of $434 million was up 5 per cent from $412 million in the first half of 2020. Operating cash flows, net of interest increased 0.4 per cent to $557 million in the first six months of 2021 compared with 1H 2020.

Total assets increased to $23.9 billion as at 30 June 2021 from $23.6 billion at the end of December. During the period under review BOC Aviation raised $2 billion in new financing and at end June it had $460 million in cash and cash equivalents in addition to $5.4 billion in undrawn committed revolving credit facilities.

The lessor signed 26 lease commitments in the first half of 2021, with all aircraft scheduled for delivery from its orderbook before 2023 placed with airline customers. It sold nine aircraft from its owned fleet and three from the managed fleet. Owned aircraft utilisation was 99.6%, with six twin aisle aircraft (all of which are now subject to new leases) and two single aisle aircraft off lease at 30 June 202. Cash collection from airline customers was 95.9% for the first half of 2021 compared with 88.8% in the first half of 2020. BOC Aviation now has a customer base of 87 airlines in 38 countries and regions in the owned and managed fleet.

CDB Aviation, JSA and Aergo close sale-and-leaseback deals
CDB Aviation has agreed sale and leaseback terms on four new A320neos with Volaris. Two are scheduled for delivery by this October and two by May 2022. All four have been acquired on long-term leases. CDB Aviation already had two aircraft on lease to the Mexican carrier.

Commenting on the deal, CDB Aviation Head of Commercial for the Americas, Luis da Silva said, ‘We are very pleased to offer tremendous value to our existing customer, Volaris, by leveraging the financial strength of our balance sheet and platform’s ability to move quickly in today’s demanding market conditions.

CDB Aviation has agreed sale and leaseback terms on four new A320neos with Volaris.

Deepening of our relationship with Volaris further advances our strategy to support Mexican airlines’ need for aircraft financing, as well as to gird up the ambitious development roadmap for the promising markets across Latin America.’

Jackson Square Aviation has closed sale and leaseback financing of three Airbus A320neo aircraft with Spirit Airlines. It now has 11 aircraft under operating lease with the airline.

‘We are delighted to continue to support Spirit Airlines as the carrier further expands its young and fuel-efficient fleet, and wish the airline every success with these aircraft,” said Alfredo Sarria, JSA Senior Vice President, Marketing.

Aergo Capital has completed the sale-and-leaseback of two Airbus A330-200 aircraft, both on long-term leases with Iberia. CEO Fred Browne said: ‘We found Iberia to be proactive and fully supportive in this transaction, resulting in a smooth closing process.’

Breeze Airways closes $200m Series B funding
New LCC Breeze Airways has closed a $200 million Series B funding round led by funds and accounts managed by BlackRock and Knighthead Capital Management, LLC. The funding round also includes additional investments by the airline’s existing investors, including Peterson Partners and Sandlot Partners. Based in Salt Lake City, Breeze initiated its first flights last May and now has network of 39 routes operating between secondary airports at 16 US cities. Breeze currently operates 13 Embraer aircraft and will start taking delivery of 60 new Airbus A220 aircraft in October. Nordic Aviation Capital has just delivered one Embraer E190 to Breeze.

Boeing 737 MAX begins China test flights
A Boeing 737 MAX that arrived in Shanghai from Seattle just over a week ago is understood to have undertaken a 150km journey from Pudong International Airport to Zhoushan Putuoshan Airport, where Boeing has a completion plant for installing interiors and painting liveries. Boeing has confirmed it is continuing to work with global regulators as they complete their validation processes on the 737 MAX.

Chorus Aviation net income down in Q2
Chorus Aviation made a net income of CA$21.5 million, a quarter-on-quarter decrease of CA$7.6 million. This was primarily due to the continued impact of COVID–19 on off-lease aircraft, negotiated amendments, including extensions, to certain lease agreements, the 2021 CPA amendments and lower unrealized foreign exchange gains of CA$10.7 million.

The company reported adjusted net income of CA$11.4 million, a decrease of CAS$10.3 million quarter-on-quarter, and adjusted EBITDA of CA$76.9 million, a decrease of CA$14.2 million over second quarter 2020.

ACG delivers third A220 to airBaltic
Aviation Capital Group has delivered one new Airbus A220-300 aircraft on long-term lease to airBaltic, the third in a sale and leaseback transaction between ACG and the airline.

Wizz Air finances A321-200neo under JOL
Credit Agricole-CIB has closed the 12-year financing of one new A321-200NEO delivered to Wizz Air under a JOL structure arranged by JP Lease Products & Services (Tokyo), with JLPS Holding Ireland acting as servicer. The French bank acted as mandated lead arranger, lender, agent and security trustee.

Avation signs five year ATR leases
Avation has signed new five-year leases for three ATR 72-500 aircraft with Australian airline Hevilift. Two of the new leases are follow-on leases for aircraft already operating with Hevilift and the third is a new lease. The aircraft are all former Virgin Australia aircraft. Virgin Australia returned six ATR 72-500 aircraft to Avation of which five have now been leased or sold. Avation Executive Chairman Jeff Chatfield said: ‘We are starting to observe a recovery in the air travel industry, notably in the regional sector where the ATR 72 is the optimal aircraft.’

Alaska orders 12 more Boeing 737-9 aircraft
Alaska Airlines has turned options for 12 Boeing 737-9 aircraft into firm commitments for 2023 and 2024. This brings Alaska’s total firm 737-9 orders to 93 aircraft, just five of which are currently in service. Alaska announced a restructured agreement with Boeing last December 2020 to acquire 68 737-9 aircraft between 2021 to 2024, with options for another 52 deliveries between 2023 and 2026. This year, the airline has exercised 25 of the options, including 13 planes in May. As part of this transaction, Alaska will add 25 options to backfill the ones that have been exercised.

BBAM ups A320P2F/A321P2F orders
BBAM LP (BBAM) and Elbe Flugzeugwerke (EFW), a joint venture of ST Engineering and Airbus, have signed an agreement for further Airbus A320/A321 passenger-to-freighter (P2F) conversions including options. The new orders by BBAM bring the total number of its A320/A321P2F conversions to 20, with the conversions to be carried out by EFW through 2025. The agreement comes with the option to add new conversion slots every year starting in 2026. The order makes BBAM the largest aircraft lessor for the A320/A321P2F programme.

Russian LCC cancels GECAS, SMBC Aviation agreements
Aeroflot Group LCC subsidiary Pobeda has cancelled lease agreements on 15 new Boeing 737-8 MAX 8 aircraft with GECAS and a further five of the same type with SMBC Aviation Capital. It cited lack of certification for the aircraft in Russia as the main reason for the cancellations, along with the late delivery of the type by its manufacturer. it added that it had not incurred any penalties from Boeing as a result of the decision. Pobeda currently operates 44 Boeing 737-800s and is due to receive another 47.