Aircraft Orders & Deliveries
Gulf Air Leases Nine Airbus A320neo Jets from BOC Aviation for Expansion
Bahrain’s Gulf Air partners with BOC Aviation to lease nine fuel-efficient Airbus A320neo jets, enhancing fleet sustainability and regional competitiveness by 2027.
In a significant move that underscores the shifting dynamics of the global aviation industry, Gulf Air, the national carrier of Bahrain, has entered into a lease agreement with BOC Aviation for nine Airbus A320neo family aircraft. This transaction is not merely a fleet update; it reflects broader trends in aircraft leasing, sustainability imperatives, and competitive positioning in the Middle East aviation market.
The agreement involves six A320neo and three A321neo aircraft, all equipped with CFM International LEAP-1A engines. Deliveries will begin in 2025 and continue through 2027. As Gulf Air navigates the post-pandemic recovery phase, this deal is poised to play a pivotal role in enhancing the airline’s operational efficiency, expanding its route network, and aligning with global sustainability goals.
With this partnership, Gulf Air joins a growing list of carriers leveraging aircraft leasing to optimize their capital expenditure while maintaining flexibility in fleet planning. The move also marks BOC Aviation’s first deal with Gulf Air, expanding the lessor’s footprint in the Gulf region.
Gulf Air, established in 1950, has undergone several transformations over the decades. Historically operating as a regional player, the airline has gradually evolved into Bahrain’s flagship carrier, now serving over 50 destinations across Africa, Asia, and Europe. However, financial headwinds, including pandemic-related losses and geopolitical disruptions such as the 2017 Gulf rift, have necessitated a reevaluation of its operational model.
Since 2015, Gulf Air has embarked on a fleet renewal strategy, aiming to retire its older A320ceo aircraft and replace them with more fuel-efficient models. The latest lease agreement with BOC Aviation accelerates this transition by adding nine next-generation aircraft to its fleet, which already includes 14 A320neo and A321neo models.
This modernization supports Gulf Air’s boutique strategy, which emphasizes premium services and customer experience enhancements, such as upgraded Falcon Gold lounges in key international airports. The fleet upgrade is expected to reduce maintenance costs, improve fuel efficiency, and enhance the airline’s ability to compete with regional giants like Emirates and Qatar Airways.
“This partnership underscores our commitment to modernizing our operations and expanding our network,” said Dr. Jeffrey Goh, CEO of Gulf Air.
BOC Aviation, a wholly owned subsidiary of the Bank of China, has become a dominant force in the global aircraft leasing market. Founded in 1993 and rebranded after its acquisition in 2006, the company now manages a portfolio of 829 aircraft and engines owned, managed, and on order, serving 93 airlines across 48 countries and regions as of March 2025. (bocaviation.com)
The lessor’s strategy revolves around long-term leases, offering airlines a flexible alternative to outright aircraft purchases. This approach has gained traction in the wake of the pandemic, as carriers seek to preserve liquidity and reduce capital expenditures. The Gulf Air deal aligns with BOC Aviation’s business model and further diversifies its client base in the Middle East. Steven Townend, CEO of BOC Aviation, emphasized the strategic nature of the agreement: “This transaction provides Gulf Air with nine technologically advanced aircraft and demonstrates our ability to meet our customers’ financing needs.”
The nine Airbus jets—six A320neo and three A321neo—will be powered by CFM International’s LEAP-1A engines, known for delivering significant fuel efficiency improvements compared to previous models. The phased delivery schedule from 2025 to 2027 ensures a steady integration into Gulf Air’s operations, minimizing disruptions and aligning with long-term network planning.
These aircraft will complement Gulf Air’s existing fleet and support its direct orders from Airbus, which include additional A320neo and A321neo models. The A321neo’s extended range capabilities will enable Gulf Air to explore long-haul destinations, including potential routes to the United States and China.
Although financial terms were not disclosed, BOC Aviation’s board described the lease as “fair and reasonable,” consistent with its typical contractual frameworks. The strategic value for Gulf Air lies in the ability to modernize its fleet without incurring the high upfront costs associated with direct purchases.
The global aircraft leasing market has been experiencing significant growth, with leasing now accounting for approximately 50% of the global fleet. This proportion is forecasted to increase as airlines increasingly favor asset-light models to navigate economic uncertainty.
BOC Aviation’s robust portfolio positions it well to benefit from this trend. In the Middle East, where passenger traffic is rebounding, leasing provides a strategic advantage for carriers like Gulf Air aiming to scale operations quickly without long-term financial burden.
This structural shift in fleet financing reflects broader industry dynamics, where flexibility, risk mitigation, and sustainability are becoming central to airline strategy.
Narrowbody aircraft such as the A320neo family are increasingly central to airline fleet strategies. These aircraft offer the capacity and range needed for regional and medium-haul routes, which dominate travel patterns in the Gulf. Airbus projects the delivery of a significant number of aircraft in 2025, with the A320neo family comprising the majority due to its substantial share of the global narrowbody fleet. (airbus.com) Gulf Air’s focus on narrowbody jets aligns with industry forecasts predicting continued growth in this segment. The LEAP-1A engines not only reduce fuel consumption but also support regulatory compliance with international emissions standards.
Adopting fuel-efficient aircraft contributes to Gulf Air’s alignment with Bahrain’s national sustainability goals and the International Air Transport Association’s (IATA) target to achieve net-zero carbon emissions by 2050. This dual focus on economic and environmental performance enhances the airline’s appeal to both travelers and investors.
“The LEAP-1A engines will significantly reduce our carbon footprint while improving cost efficiency,” Gulf Air representatives noted in the official press release.
Airbus has faced production delays in recent years due to supply chain disruptions, particularly involving engine deliveries from CFM International. These bottlenecks impacted A320neo deliveries in 2024, raising concerns across the industry.
However, Gulf Air’s staggered delivery timeline through 2027 offers a buffer against such uncertainties. By spreading out aircraft arrivals, the airline ensures a consistent influx of capacity while allowing time to train crews, adjust maintenance infrastructure, and optimize route deployment.
This measured approach reflects a broader trend among carriers adopting phased fleet expansion strategies to balance growth ambitions with operational stability.
Gulf Air’s lease agreement with BOC Aviation is a strategic maneuver that addresses multiple objectives—fleet modernization, cost efficiency, sustainability, and competitive positioning. By integrating nine new Airbus A320neo family aircraft, the airline strengthens its ability to serve key markets and pursue new routes, all while aligning with environmental and financial goals.
Looking ahead, the success of this initiative will depend on Gulf Air’s ability to execute its network expansion plans and manage financial pressures, including potential privatization. For BOC Aviation, the deal reinforces its role as a key player in global aviation finance, especially in emerging markets. As leasing continues to reshape airline economics, partnerships like this one are likely to become more prevalent, driven by the need for agility and sustainability in a rapidly evolving industry.
What aircraft are included in Gulf Air’s lease agreement with BOC Aviation? When will the aircraft be delivered? Why is Gulf Air leasing instead of purchasing aircraft? How does this deal align with sustainability goals? Is this BOC Aviation’s first deal with Gulf Air? Sources: BOC Aviation, IATA, Airbus, Gulf Air
Gulf Air’s Strategic Fleet Expansion Through BOC Aviation Lease Agreement
Fleet Modernization and Strategic Positioning
Gulf Air’s Modernization Journey
BOC Aviation’s Expanding Role
Aircraft Specifications and Delivery Timeline
Industry Context and Future Implications
The Rise of Aircraft Leasing
Narrowbody Dominance and Sustainability
Operational Resilience and Supply Chain Considerations
Conclusion: Strategic Implications and Future Outlook
FAQ
The deal includes six Airbus A320neo and three A321neo aircraft, all powered by LEAP-1A engines.
Deliveries will begin in 2025 and continue through 2027.
Leasing allows Gulf Air to modernize its fleet without large upfront capital investments, preserving liquidity for other strategic initiatives.
The LEAP-1A engines offer significant fuel efficiency improvements, helping Gulf Air reduce emissions and support IATA’s 2050 climate targets.
Yes, this marks the first partnership between the two companies, expanding BOC Aviation’s client base in the Middle East.
Photo Credit: Airbus
Aircraft Orders & Deliveries
BOC Aviation Renews $3.5B Credit Facility with Bank of China to 2031
BOC Aviation extends its $3.5 billion revolving credit facility with Bank of China to 2031, securing liquidity for aircraft investments and growth.
This article is based on an official press release from BOC Aviation.
BOC Aviation Limited has officially announced the renewal of its US$3.5 billion unsecured revolving credit facility (RCF) with its majority shareholder, the Bank of China. Confirmed on February 16, 2026, the transaction extends the maturity of the facility to February 13, 2031, providing the Singapore-based lessor with a five-year horizon of secured liquidity.
The renewal maintains the facility’s total value at the same level established during its 2020 expansion. According to the company, this move is designed to bolster financial flexibility and ensure consistent access to capital for aircraft investments, regardless of broader market cycles. The agreement underscores the continued financial backing BOC Aviation receives from its parent company, a critical differentiator in the competitive aircraft leasing sector.
The renewed agreement is an unsecured revolving credit facility, a structure that allows BOC Aviation to draw down, repay, and re-borrow funds as needed up to the US$3.5 billion limit. By extending the maturity date to 2031, the lessor secures a long-term funding runway to support its growth strategy.
Steven Townend, Chief Executive Officer and Managing Director of BOC Aviation, emphasized the strategic importance of this renewal in a statement released by the company. He highlighted the alignment between the lessor and its parent organization.
“This RCF extension reflects the confidence that Bank of China has in the future of our business and underscores the depth of our relationship with our major shareholder. The facility strengthens our financial flexibility and ensures our access to ample liquidity to support our aircraft investments across the cycle.”
, Steven Townend, CEO of BOC Aviation
The credit facility has grown significantly alongside BOC Aviation’s fleet over the last two decades. The company provided a timeline of the facility’s evolution, illustrating the increasing scale of support from the Bank of China:
This liquidity event occurs against a backdrop of significant operational activity for the lessor. As of December 31, 2025, BOC Aviation reported a total portfolio of 815 aircraft and engines, including owned, managed, and ordered assets. The company’s reach extends to 87 airlines across 46 countries and regions.
Data released regarding the full year 2025 indicates robust activity, with the company taking delivery of 51 new aircraft and executing a record 333 transactions. These transactions included 160 aircraft purchase commitments, signaling an aggressive growth posture that necessitates substantial available capital. In addition to the RCF renewal, BOC Aviation has recently moved to diversify its funding sources. In early February 2026, the company successfully priced US$500 million in senior unsecured notes. The combination of these notes and the renewed RCF provides a multi-layered capital structure to fund future acquisitions.
The renewal of this facility highlights a structural advantage for BOC Aviation compared to independent lessors. In a high-interest-rate environment or during periods of market volatility, the cost of funds is a primary determinant of a lessor’s profitability. The direct backing of a major state-owned bank allows BOC Aviation to secure large-scale liquidity that might be more expensive or difficult to arrange for competitors without similar parentage.
Furthermore, with supply chain constraints continuing to affect Airbus and Boeing deliveries in 2026, lessors with ready cash are better positioned to execute sale-and-leaseback (SLB) transactions with airlines desperate for liquidity. By locking in US$3.5 billion in revolving credit through 2031, BOC Aviation is effectively positioning itself to act as a liquidity provider to the airline industry, potentially acquiring assets at attractive valuations while manufacturers struggle to meet delivery targets.
BOC Aviation Secures US$3.5 Billion Facility Renewal with Bank of China
Transaction Details and Management Commentary
Historical Evolution of the Facility
Operational Context and Financial Position
AirPro News Analysis
Sources
Photo Credit: BOC Aviation
Aircraft Orders & Deliveries
Air Astana Orders 15 Boeing 787-9 Dreamliners to Expand US Routes
Air Astana finalizes $7B order for 15 Boeing 787-9 Dreamliners to modernize its fleet and enable direct flights to North America starting 2026.
This article is based on an official press release from Boeing and Air Astana.
On February 17, 2026, Air Astana JSC, the flag carrier of Kazakhstan, officially finalized a major agreement with Boeing for up to 15 Boeing 787-9 Dreamliner aircraft. The deal, announced in Seattle, marks the largest single aircraft purchase in the airline’s history and signals a pivotal shift in its long-haul strategy. Valued at approximately $7 billion at list prices, the agreement is designed to modernize the carrier’s widebody fleet and facilitate direct operations to North America.
The acquisition comes at a critical transition point for the Airlines, coinciding with a leadership change and following its recent IPO. According to the official announcement, the new fleet will replace aging Boeing 767s and provide the range necessary to navigate complex geopolitical airspace restrictions while connecting Central Asia to the United States.
The agreement creates a long-term pipeline for fleet renewal. According to details released regarding the Contracts, the order for 15 aircraft is structured in three tiers:
While the newly purchased jets are scheduled for delivery between 2032 and 2035, Air Astana will begin operating the Dreamliner much sooner. Through a separate agreement with Air Lease Corporation (ALC), three leased Boeing 787-9s are expected to join the fleet in the first quarter of 2026. These leased units will allow the carrier to begin pilot training and route expansion immediately, bridging the gap until the direct orders arrive.
The selection of the 787-9 variant represents a significant upgrade in capacity and efficiency over Air Astana’s current widebody workhorse, the Boeing 767-300ER. Data provided in the announcement indicates the new Dreamliners will feature a two-class configuration with 303 seats, a substantial increase from the 223 seats offered on the 767s.
In a notable strategic pivot, Air Astana has selected General Electric GEnx-1B engines to power the new fleet, moving away from a 2012 intention to utilize Rolls-Royce Trent 1000 engines. The airline cites the 787-9’s superior fuel efficiency and range, approximately 7,530 nautical miles, as critical factors in the decision.
“Boeing airplanes have been integral to Air Astana’s operations from the beginning. We are proud that the 787 Dreamliner will support Central Asia’s growing importance in global aviation.”
, Paul Righi, VP of Commercial Sales (Eurasia), Boeing
A primary driver behind this investment is the airline’s ambition to launch non-stop service from Kazakhstan to New York (JFK). This route has long been a strategic goal but faces significant logistical hurdles due to the closure of Russian airspace following geopolitical sanctions. The current geopolitical climate necessitates a southern route over the Caspian Sea, Turkey, and Europe, adding considerable distance to the flight path. The extended range of the Boeing 787-9 is essential to making this detour commercially and operationally viable, allowing Air Astana to bypass Russian airspace without sacrificing payload or requiring technical stops.
The timing of this order suggests Air Astana is aggressively positioning itself as the dominant connector in the Central Asian market, outpacing regional competitors like Uzbekistan Airways. By securing the 787-9, the airline is not only solving the immediate problem of airspace restrictions but is also future-proofing its fleet against fuel price volatility. The shift to GE engines likely reflects a desire for reliability on these ultra-long-haul routes, where engine performance over remote regions is paramount.
The finalization of this order serves as a capstone achievement for outgoing CEO Peter Foster, who is set to retire in March 2026. Foster has led the airline through its recent IPO and this historic fleet renewal. He will be succeeded by current CFO Ibrahim Canliel, who will oversee the financial integration of these assets.
“The 787-9’s advanced technology and efficiency will allow us to connect Kazakhstan to new markets, including North America, with a superior passenger experience.”
, Peter Foster, Outgoing CEO, Air Astana
Sources: Boeing Mediaroom
Air Astana Finalizes Historic Orders for 15 Boeing 787-9 Dreamliners to Target US Routes
Deal Structure and Delivery Timeline
Technical Specifications and Fleet Modernization
Strategic Expansion: The “Holy Grail” of New York
AirPro News Analysis
Leadership Transition
Sources
Photo Credit: Boeing
Aircraft Orders & Deliveries
BlueFive Capital Launches Aircraft Leasing Platform in Oman Targeting $1B Fund
BlueFive Capital launches BlueFive Leasing in Muscat, Oman, aiming to raise over $1 billion to acquire commercial aircraft assets across Middle East, Asia, and Africa.
This article is based on an official press release from BlueFive Capital.
BlueFive Capital, a global alternative investment firm, has officially announced the launch of BlueFive Leasing, a new dedicated aircraft leasing and asset management platform headquartered in Muscat, Oman. The initiative marks a significant expansion for the firm, which is led by former Investcorp Co-CEO Hazem Ben-Gacem.
According to the company’s announcement, the new venture is established through a strategic partnership with a major Omani sovereign institution. To fuel its operations, BlueFive Leasing has commenced fundraising for BlueFive Wings Fund I, an investment vehicle targeting more than $1.0 billion in capital commitments to acquire commercial aircraft assets.
BlueFive Leasing aims to capitalize on the robust demand for air travel across the Middle-East, Asia, and Africa. By establishing its headquarters in Muscat, the platform aligns with broader regional goals to develop local financial markets and diversify economic activities.
The platform’s mandate is broad, covering the full age spectrum of commercial-aircraft. According to the press release, the company plans to build a portfolio containing a mix of:
This flexible approach allows BlueFive Leasing to offer competitive solutions to established airlines globally, particularly those modernizing fleets or expanding routes in high-growth emerging markets.
“The launch of BlueFive Leasing reflects our strategic ambition to diversify regional investment portfolios and provide a new source of aviation capital from the GCC.”
, Hazem Ben-Gacem, Founder & CEO of BlueFive Capital
The launch of the leasing platform follows a period of rapid growth for BlueFive Capital. Founded in late 2024, the firm has quickly scaled its operations. Following the recent close of its $3 billion Onyx Fund I, which focuses on technology investments in the U.S. and Europe, BlueFive Capital now reports approximately $7.4 billion in assets under management (AUM).
Hazem Ben-Gacem, who brings three years of leadership experience from Investcorp, serves as the driving force behind the firm. While specific executive appointments for the leasing arm’s day-to-day management have not yet been detailed, the company states it has assembled an expert management team with deep experience in aviation finance. The establishment of BlueFive Leasing represents more than just a new investment vehicle; it signals the continued maturation of the Gulf Cooperation Council (GCC) as a global hub for aviation finance. Historically, the region was known primarily for its world-class carriers like Emirates and Qatar Airways. Today, however, Gulf nations are moving “upstream” to own the assets themselves.
BlueFive Leasing joins a growing list of regional heavyweights, including Dubai Aerospace Enterprise (DAE) and Saudi Arabia’s AviLease. By partnering with an Omani sovereign institution, widely believed by industry analysts to be the Oman Investment Authority (OIA) or its Future Fund Oman, BlueFive is effectively leveraging sovereign wealth to capture value from the very assets that service the region’s booming travel hubs.
Furthermore, the decision to trade across the “full age spectrum” rather than focusing exclusively on new-technology aircraft suggests an opportunistic strategy. This approach may allow the firm to generate higher yields by trading mid-life assets, a segment where demand remains high due to production delays at major manufacturers like Boeing and Airbus.
BlueFive Capital Launches Aircraft Leasing Platform in Oman, Targets $1 Billion Fund
Strategic Expansion into Aviation Finance
Leadership and Capital Growth
AirPro News Analysis
Summary of Key Facts
Sources
Photo Credit: BlueFive
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