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  • BOC Aviation expects up to 30 jet deliveries to slip into 2020

BOC Aviation expects up to 30 jet deliveries to slip into 2020

Lessor BOC Aviation expects that up to 30 aircraft that were due for delivery this year could be pushed into 2020, primarily due to the Boeing 737 Max grounding.

Previously, the lessor had forecast that it would receive 79 aircraft this year, but now forecasts that up to seven A320neos and 23 737 Max jets will be pushed into next year.

BOC Aviation cites Boeing's ongoing delays with returning the 737 Max to service as the main issue behind the delays.

"We therefore expect that some or all of our 23 remaining 737 Max aircraft that were scheduled for delivery in 2019 will be delayed out of this year and we are working with Boeing on a revised delivery timeframe," it states in an operating update for its second fiscal quarter.

At the end of June, 18 aircraft were behind schedule for delivery in the first half of 2019. Of these, 12 Airbus aircraft were delayed primarily due to “industrial constraints,” while six were 737 Max aircraft.

Separately, the company signed 32 lease commitments in the quarter ended 30 June, during which it took delivery of 14 new aircraft, including two that were transferred to airline customers on delivery.

It sold eight owned aircraft and two from its managed fleet; repossessed five owned and three managed aircraft from airlines that had ceased operations, and redelivered them to new customers.

That leaves the lessor with 314 owned and 23 managed aircraft in its portfolio at the end of June. A further 162 aircraft are on order or committed to purchase, including 87 737 Max and 56 A320neo family jets.

Compared to the year-ago period, BOC Aviation's average age of its owned portfolio inched up to 3.1 years, while the average remaining lease term is marginally lower at 8.2 years.

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