Singapore's BOC Aviation Secures Financing for 10 Airbus Jets with IndiGo

IndiGo, India's largest airline, and Singapore-based BOC Aviation Limited have sealed a significant finance lease arrangement for the procurement of ten Airbus A320NEO aircraft, marking an expansion move for IndiGo's fleet.

Officials confirmed this on Wednesday. BOC Aviation outlined that they expect to deliver the batch of ten planes, all equipped with CFM LEAP-1A engines, throughout 2023.

Expressing enthusiasm about the partnership, Steven Townend, Deputy Managing Director, and Chief Financial Officer of BOC Aviation, stated, "Engaging in another transaction with our valued partner IndiGo to facilitate the airline's fleet expansion with cutting-edge technology aircraft is truly thrilling." This underscores our proficiency in deploying innovative financing structures, thereby sustaining our long-term growth trajectory."

Furthermore, he added, "Strengthening our collaboration with BOC Aviation through the leasing agreement for this batch of ten aircraft brings us great satisfaction. This strategic cooperation with BOC Aviation aligns with IndiGo's overarching expansion strategy, spanning both domestic and international markets.

BOC Aviation of Singapore Inks Financing Deal for 10 Airbus Jets with IndiGo

As the Indian air travel sector experiences rapid growth, concerns have emerged from former pilots via social media and op-ed pieces, asserting that airlines, while operating within regulatory frameworks, are exerting extreme pressure on them. The sudden demise of an IndiGo pilot last week further heightened these concerns.

However, the airline, India's largest, asserted that the pilot had a substantial 27-hour break before duty and was in good health.

Reflecting on the context, an industry analyst commented, "India currently stands as one of the swiftest-developing civil aviation markets globally. The induction of these aircraft is positioned to enhance IndiGo's influence in the region.

BOC Aviation stands as a prominent global player in the aircraft operating leasing domain, boasting a fleet of 652 aircraft in ownership, management, and on order. Its comprehensive fleet caters to 91 airlines across 42 countries and territories as of June 30, 2023.

On the other hand, InterGlobe Aviation Ltd, the entity behind IndiGo, positions itself as one of the world's most rapidly expanding low-cost carriers. With a fleet exceeding 300 aircraft, the airline presently operates approximately 1,900 daily flights, interlinking 79 domestic destinations. The airline's future plans encompass expanding its operational footprint to encompass 32 international destinations.