01 Feb 2025
#1 Feb 2025: China Aviation Industry Newsletter
BOC Aviation Expands Fleet with 47 Aircraft Orderbook Additions in 2024
BOC Aviation has reported robust growth in 2024, expanding its order book with 47 new aircraft commitments despite ongoing supply chain constraints. The company successfully delivered 38 aircraft, bringing its total owned portfolio to a record 435 aircraft. As part of its active asset management strategy, BOC Aviation also sold 29 aircraft. With a collection rate exceeding 100% for the third consecutive year and aircraft utilisation above 99%, the lessor ended 2024 with all aircraft on lease. CEO & Chairman Steven Townend emphasised that these additions will drive future revenue growth and reinforce the company’s long-term sustainable expansion strategy.
China Aircraft Leasing Acquires Two Boeing 737-800 Aircraft
China Aircraft Leasing Group Holdings Limited (CALC) has announced the acquisition of two Boeing 737-800 aircraft, scheduled for delivery by August 2025. The acquisition aligns with CALC’s strategy to expand its aircraft portfolio and strengthen its presence in the global aviation leasing market. This move also reflects the company’s focus on securing assets with strong demand potential and reinforcing its capabilities as a leading lessor.
China Eastern Airlines Taps Travelport for Comprehensive Multi-Source Content Solutions
China Eastern Airlines has entered into a long-term agreement with Travelport to enhance its distribution capabilities through multi-source content solutions, including New Distribution Capability (NDC) content. This partnership will enable travel agencies to seamlessly access, book, and manage China Eastern Airlines' inventory, with added functionalities such as cancellations and exchanges. The agreement underscores China Eastern Airlines' commitment to advancing digital transformation and providing personalised retailing experiences for travellers. Fu Jian, VP of Digital Transformation at China Eastern Airlines, highlighted the strategic importance of NDC adoption in scaling distribution and improving accessibility for agencies and customers.
Acumen’s Take
On BOC Aviation's Fleet Expansion
The continued expansion of BOC Aviation’s orderbook highlights the resilience and long-term strategic planning necessary for aviation lessors. By maintaining a high utilisation rate and ensuring all aircraft remain on lease, BOC Aviation has demonstrated strong portfolio management. Acumen sees this as an indicator of sustained demand for aircraft leasing, particularly in an environment where airlines seek flexible financing solutions.
On China Aircraft Leasing's Acquisition of Boeing 737-800s
With narrowbody aircraft continuing to dominate fleet expansion plans worldwide, CALC’s investment in Boeing 737-800s aligns with market demand for fuel-efficient, versatile aircraft. Acumen views this acquisition as a well-timed move to capitalise on the strong leasing market, especially with the expected rise in short- and medium-haul travel post-pandemic.
On China Eastern Airlines' Partnership with Travelport
China Eastern Airlines' collaboration with Travelport represents a significant step toward digital transformation in airline retailing. By leveraging NDC capabilities, the airline can provide enhanced booking flexibility and personalised experiences for travellers. Acumen recognises the growing importance of digitalisation in aviation and sees this as a move that other airlines may replicate to improve customer engagement and streamline distribution channels.
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