World's largest aircraft lessor BOC Aviation  announced on Monday its lease-back deal with Air China.

Under the deal, BOC will acquire five new aircrafts from Air China for US$1.532 billion at list prices, and lease them back to the carrier.

Like Us on Facebook

BOC Aviation said in a statement that the aircrafts will consist of three Boeing B777-300ERs and two Airbus A330-300s, which will be delivered before yearend.

"We are pleased to support Air China in its fleet growth and expansion plans in this transaction, which adds popular, in-demand aircraft on long-term leases to our portfolio," BOC Aviation chief executive officer Robert Martin said.

Martin added that the company would focus on disciplined investing to grow their fleet in line with their strategy.

Delta Asia Financial chief operating officer Victor Au said BOC has the financial muscle to expand its fleet, while noting that the aviation company just raised US$1.1 billion through its IPO in the Hong Kong stock exchange. 

China Galaxy International analyst Tony Li supported Au's opinion, as he pointed out that BOC has the ability to gain "low cost funds" since the firm has maintained a good credit rating and good relationships with banks and investors throughout the world.

BOC currently has a total of 483 aircrafts, some of which are still on order. Its fleet has been leased to 64 airlines worldwide, spread across in 31 countries as of June this year.   

TagsAir China, BOC Aviation, Aircraft Lessor Firm, Aviation Companies in China