BOC Aviation To Buy 22 Aircraft From United Airlines, Lease Back Aircraft

(RTTNews) - The Singapore-based BOC Aviation agreed to purchase six Boeing 787-9 aircraft and 16 Boeing 737-9 MAX aircraft from United Airlines, and to lease back the aircraft to United Airlines. But it did not reveal financial terms of the deal.

BOC Aviation said in a filling on Hong Kong Stock Exchange that it plans to complete the deal in 2020.

BOC Aviation said it will enter into long term leases with the Airline in respect of the Aircraft.

BOC Aviation Limited is a global aircraft operating leasing company with a fleet of 567 aircraft owned, managed or on order as at 31 March 2020. It has its headquarters in Singapore with offices in Dublin, London, New York and Tianjin.

On Wednesday, United Airlines had said it plans to further reduce its schedule and cut costs, saying that federal-government aid does not cover its total payroll expense. The aid represented only about 30 percent of its total costs. Meanwhile, the airline indicated that it could cut jobs after the end of deadline set by the government in the financial aid terms.

The airline would further reduce its capacity to about 10 percent of what had been planned for May at the beginning of this year. It expects to announce similar reductions to the June schedule in the next few weeks, as a result of the coronavirus pandemic.