BOC Aviation to request Ex-Im guarantees for Lion Air aircraft

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

BOC Aviation will request US Export-Import Bank support on 1 November to cover Boeing aircraft on lease to Lion Air, according to the export credit agency.

No further details were provided about the Indonesian carrier's request for financial guarantees.

Lion Air recently closed a series of sale and leaseback transactions on its 737-800 and 737-900ER units.

In July, Lion Air completed a 12-year sale and leaseback deal involving a new 737-800 aircraft with GECAS. The aircraft, MSN 37295, was followed by another delivery, MSN 38681, in September.

CDB Leasing also closed a sale and leaseback transaction with Lion Air on a new 737-800, MSN 38722. The aircraft followed another 737-800 delivery, MSN 37294, which closed in June.

Lion Air also sold two new 737-900ER deliveries to Jackson Square Aviation and agreed to lease them back. MSN 37296 and MSN 38723 closed in August.

Separately, the Indonesian carrier will start a hybrid airline in Malaysia in a joint venture with the country's National Aerospace and Defence Industries. The new carrier, named Malindo Airways, will start operations in May 2013 with a fleet of 12 737-900ER aircraft

The carrier intends to add 12 aircraft to its fleet each year, including the Boeing 737 Max and 787. These aircraft will come from Lion Air's current order book.

The five 787s Lion Air has on order - originally set for its premium carrier Batik Air - will instead go to Malindo in 2015. Lion Air is now in talks with Boeing to order an additional 10 787s.