BOC Aviation delivers Dreamliners to Air Europa amid safety fears

This delivery comes amid widespread unease around the Boeing 787-9 Dreamliner and the British-built Rolls Royce Trent 1000 engine, with restrictions recently put in place

Bank of China subsidiary BOC Aviation recently delivered the first of seven new Boeing 787-9 Dreamliners to Spanish carrier Air Europa. The aircraft are part of a sale and leaseback transaction.

The remaining six aircraft - also Boeing 787-9 Dreamliners- are scheduled for delivery by the fourth quarter of 2020. All seven aircraft will be powered by Rolls Royce Trent 1000 engines.

“The aircraft we are delivering from today reflects the culmination of a transaction we first announced back in 2017, and exemplifies the depth of the partnership between ourselves and Air Europa,” says Robert Martin, managing director and chief executive officer of BOC Aviation.

Under a sale and leaseback, airlines that have ordered aircraft invite bids from leasing companies to buy the planes, which are then leased to the carrier. In today's highly competitive market, the ability to do very large deals, often featuring multiple widebodies, is an important advantage. The list price of the Boeing 787-9 is US$292 million, though major airlines would typically get a 50% discount for large orders.  

In March, BOC Aviation announced its financial results for the full year ended December 31 2018.

Total revenues and other income rose 23% year-on-year, to US$1.73 billion. Profit before tax was US$685 million, up 24% year-on-year. Net profit after tax was US$620 million.

Total assets increased 14% year-on-year, to US$18 billion. As of year-end, BOC Aviation held a total fleet of 511 aircraft owned, managed and on order, and leased aircraft to 93 airlines in 37 countries.

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