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Stock price 2588 (HKG) HK$ 40.45 +0.05 (+0.12%)27 Feb, 4:09 PM GMT+8 - Disclaimer | ||
Airline business speak to boc aviation chief executive robert martin
BOC Aviation is a leading global aircraft operating leasing company and the largest aircraft operating leasing company headquartered in Asia, as measured by the value of owned aircraft.
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The business model is underpinned by strong global trends in the aviation industry. The company's aircraft are mobile and can be redeployed throughout the world, and have long economic lives. BOC Aviation also benefits from long-term, U.S. Dollar denominated cash flows from a globally diversified airline customer base who lease our aircraft, and from owning assets with values denominated in U.S. Dollars. The company believes the scale of its business and its investment grade credit ratings make it an attractive counterparty to both aircraft manufacturers and airline customers, which further reinforces its competitiveness.
BOC Aviation's specialised aviation industry knowledge, relationships with airline customers, aircraft manufacturers and other key aviation industry participants, together with the long-term experience and talent of its senior management team and other key employees have enabled the company to deliver strong operational and financial results through multiple industry cycles. In particular, it has had 22 years of unbroken profitability.
The core business model is focused on purchasing new, fuel-efficient, in-demand aircraft at competitive prices directly from aircraft manufacturers, financing those aircraft purchases efficiently, placing aircraft on long-term operating leases with a globally diversified customer base and selling aircraft to maintain a young fleet, to mitigate risks in our aircraft portfolio and to generate gains on sale, as well as reinvesting the sale proceeds in new aircraft investments.
The portfolio of owned aircraft has an average age of less than four years, weighted by net book value, making it one of the youngest in the aircraft operating lease industry. BOC Aviation has long-term contracted cash flows, with a weighted average remaining lease term on the owned portfolio of more than seven years.
The company benefits from a low average cost of funds, supported by strong credit ratings (A- from both Standard & Poor’s and Fitch) and a diversified range of funding sources. BOC Aviation also enjoys strong and committed support from our controlling shareholder, Bank of China.
BOC Aviation is listed on the Hong Kong Stock Exchange (HKEx code: 2588) and has its headquarters in Singapore with offices in Dublin, London, Seattle and Tianjin
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History
The history dates back to 1993 when the Company was founded as Singapore Aircraft Leasing Enterprise Pte. Ltd. by Singapore Airlines Limited and Boullioun Aviation Services, Inc., a U.S.-based aircraft operating leasing company. In 1997, the Company’s shareholder base was broadened when Temasek Holdings (Private) Limited and Government of Singapore Investment Corporation Private Limited joined the founders as investors.
In 2000, the Company was reported to be the largest customer of the Airbus' single-aisle aircraft in Asia.
In December 2006, the Company was acquired by, and became a wholly owned subsidiary of, Bank of China. At the time, the Company was the largest aircraft leasing company in Asia. Following the acquisition the Company’s name was changed to BOC Aviation Pte. Ltd. in 2007.
On 12 May 2016, the Company was converted to a public company limited by shares and the Company's name was changed to BOC Aviation Limited.
On 1 June 2016, the Company was listed on the Main Board of the Stock Exchange of Hong Kong.
Bank of China bought the company's shares for US$965 million. Thus, to reflect the change in ownership, the company was renamed BOC Aviation on 2 July 2007.