Aircraft Orders & Deliveries
BOC Aviation Signs Lease Deal with JetSMART for Three Airbus Jets
BOC Aviation leases three Airbus A320neo family aircraft to JetSMART, supporting Latin America’s aviation growth and JetSMART’s expansion plans.
The global aircraft leasing industry witnessed a notable development on September 1, 2025, as BOC Aviation Limited announced a lease agreement with South American ultra-low-cost carrier JetSMART Airlines for three Airbus A320neo family aircraft. This transaction, comprising two A321neo and one A320neo aircraft equipped with Pratt & Whitney GTF engines, scheduled for delivery in 2027, marks the third collaboration between the two companies. It underscores the robust growth trajectory of Latin American aviation markets and aligns with JetSMART’s ambitious plans to operate 120 aircraft by 2031 and carry 100 million annual passengers by 2028. Both companies aim to capitalize on the region’s projected 4.40% compound annual growth rate through 2034. This partnership emerges amid ongoing supply chain challenges, with lease rates for new A320neo family aircraft commanding approximately $400,000 to $460,000 per month, reflecting the premium value of modern, fuel-efficient aircraft in today’s competitive aviation landscape.
This article explores the background, strategic context, market dynamics, and broader implications of the BOC Aviation,JetSMART lease agreement, providing a comprehensive analysis of its significance in the evolving Latin American aviation ecosystem.
The September 2025 lease agreement between BOC Aviation and JetSMART is a continuation of a strategic partnership, with this transaction marking their third collaborative effort. BOC Aviation Limited, headquartered in Singapore, is one of the world’s leading aircraft operating leasing companies, with a portfolio of 834 aircraft and engines owned, managed, and on order as of June 30, 2025. Its fleet serves 92 airlines across 45 countries and regions, demonstrating its extensive operational reach and scale.
JetSMART Airlines, founded in 2017 as part of the Indigo Partners portfolio, has rapidly emerged as South America’s largest and fastest-growing ultra-low-cost carrier (ULCC). The airline currently operates 49 Airbus A320 and A321 aircraft across nine countries, including Chile, Argentina, Peru, Colombia, Brazil, Uruguay, Paraguay, Ecuador, and the Dominican Republic. JetSMART’s unique branding, featuring South American animals on its aircraft tails, has become a regional signature, raising awareness about biodiversity while enhancing brand recognition.
The current agreement involves BOC Aviation’s purchase of three new aircraft directly from Airbus, consisting of two A321neo and one A320neo, all powered by Pratt & Whitney GTF engines. These aircraft are committed to long-term leases with JetSMART and scheduled for delivery in 2027, reflecting the extended lead times due to persistent supply chain constraints. Airbus has warned that delivery delays will persist through at least 2028, with jets scheduled for delivery in 2027 and 2028 potentially facing delays of up to six months.
“This is the third transaction we have completed with JetSMART, and we are delighted to support their expansion with the addition of three new fuel-efficient Airbus aircraft,” said Steven Townend, CEO and Managing Director of BOC Aviation.
Financially, the agreement reflects current market dynamics: new Airbus A320neo aircraft lease for approximately $400,000 per month, while A321neo variants command about $460,000. These rates are a premium over older-generation aircraft, highlighting the value of modern, fuel-efficient technology in airline operations.
JetSMART’s aggressive expansion strategy is rooted in the airline’s confidence in Latin America’s aviation growth potential and the proven success of the ULCC model globally. The airline aims to operate 120 aircraft by 2031, more than doubling its current fleet, and to carry 100 million passengers by 2028, up from 8.2 million in 2023. This expansion is supported by a network of over 80 routes across nine countries, making JetSMART a key connectivity provider in a region where air travel is essential due to geographic barriers.
JetSMART’s position as South America’s largest ULCC has been reinforced by multiple industry recognitions, including the SKYTRAX Best Low-Cost Airline in South America award in 2021, 2023, and 2025. The airline’s focus on operational efficiency and customer experience has enabled it to maintain strong performance metrics while pursuing aggressive growth across its markets. JetSMART’s operational model emphasizes fleet modernization and fuel efficiency, with one of the youngest fleets in the Americas, aligning with industry trends toward sustainability and lower emissions. The airline’s partnership with American Airlines, facilitated through Indigo Partners, allows passengers to earn and redeem AAdvantage miles on JetSMART flights. This collaboration extends JetSMART’s reach and provides customers with access to a global loyalty program, while American Airlines benefits from expanded access to South American markets. Such partnerships reflect a broader trend in aviation toward strategic alliances that leverage complementary strengths and market positions.
“JetSMART’s expansion is a testament to the ULCC model’s ability to stimulate new demand and provide affordable travel options in emerging markets,” noted an aviation industry analyst.
JetSMART’s commitment to sustainability and fleet modernization not only supports its operational efficiency but also resonates with environmentally conscious consumers, a growing consideration in the airline industry.
BOC Aviation has evolved from its origins as Singapore Aircraft Leasing Enterprise (SALE) in 1993 to become a leading global aircraft lessor. Acquired by Bank of China in 2006 and publicly listed in Hong Kong in 2016, BOC Aviation maintains a young fleet with an average age of about five years (by net book value), focusing on fuel-efficient, technologically advanced aircraft that meet airlines’ operational and sustainability requirements.
The company’s financial strength, supported by investment-grade credit ratings and diverse funding sources, enables it to offer competitive lease terms while maintaining healthy margins. BOC Aviation’s global presence, with offices in Singapore, Dublin, London, New York, and Tianjin, allows it to serve a broad range of airline customers and respond flexibly to market shifts.
BOC Aviation’s partnership approach, exemplified by its relationship with JetSMART, is built on supporting airline customers through various growth phases. The three transactions with JetSMART demonstrate BOC Aviation’s commitment to long-term partnerships that create value for both lessor and airline, supporting predictable cash flows and reliable access to modern aircraft.
“Our strategy is to build enduring relationships with high-growth airlines, providing them with the aircraft they need to succeed in dynamic markets,” explained a BOC Aviation executive.
The Latin American aviation market is experiencing robust growth and resilience. In January 2025, the region transported 42.3 million passengers, a 2.4% increase year-over-year, driven by route reactivation, open skies policies, and rising international tourism. Domestic traffic is particularly strong, with Brazil leading at 8.6 million passengers, a 5.3% increase from the previous year. Argentina and Mexico also report positive domestic figures, providing a stable foundation for airline growth strategies.
Intra-regional international traffic has grown even more rapidly, expanding by 10.5% to 5.3 million passengers. Notable routes include Brazil-Chile (up 41%) and Ecuador-Panama (up 53%). Latin America now supports nearly 550 international air routes, up from 390 in 1996, and international seat capacity reached 66.5 million in 2025, an 18% increase over 2019. Despite some infrastructure constraints, the region’s strong demand supports continued market expansion.
Low-cost carriers account for less than 20% of international seats in the region, compared to 45% in Europe, suggesting significant room for further ULCC growth. Brazil remains the largest aviation market, while Colombia’s international market has grown sevenfold since 2000. These trends provide favorable conditions for ULCCs like JetSMART to expand market share and stimulate new demand. The global aircraft leasing market is characterized by upward pressure on lease rates and evolving market structures. As of 2025, new Airbus A320neo aircraft lease for around $400,000 per month, while A321neo variants can reach $460,000. These figures reflect strong demand for modern, fuel-efficient aircraft and tight supply due to ongoing production recovery and supply chain constraints. Mid-life aircraft have also seen lease rates rise, with some A320 family aircraft experiencing over 20% annual growth in rates.
Market values for new A320neo aircraft are typically around $55 million, with A321neo aircraft valued at approximately $64 million. Highly specified longer-haul models can command even higher prices. The competitive leasing environment has led to more sophisticated lease structures, including maintenance support and technical services, as lessors seek to differentiate themselves.
Geopolitical developments, such as aircraft stranded in Russia due to sanctions, have impacted lessor financial performance and increased the focus on geopolitical risk assessment in lease placements. Despite these challenges, the leasing market remains robust, with major players like BOC Aviation well-positioned to capitalize on strong demand fundamentals.
The aerospace supply-chain continues to face significant challenges, impacting aircraft delivery schedules and creating operational uncertainty. Airbus has warned that delivery delays will persist through 2028, with aircraft scheduled for 2027 and 2028 potentially delayed up to six months. These delays are due to shortages in critical components such as seating, landing gear, and avionics.
Airbus’s order backlog exceeded 8,000 aircraft at the end of 2024, and despite efforts to ramp up A320neo family production, component shortages remain a bottleneck. The A320neo family has been particularly affected, with deliveries in early 2025 down 32% year-over-year. Engine manufacturers, including CFM International and Pratt & Whitney, have also faced challenges meeting demand and supporting in-service fleets.
These supply chain constraints have led airlines to extend existing leases and contributed to strength in secondary market lease rates. Lessors benefit from higher rates and reduced aircraft return pressure, while airlines must adapt their fleet planning to account for delivery uncertainties.
The BOC Aviation,JetSMART lease agreement is more than a financing transaction; it is a strategic alliance designed to capitalize on Latin America’s aviation growth. For JetSMART, access to modern, fuel-efficient aircraft is crucial to executing its expansion strategy while maintaining financial flexibility. Securing 2027 delivery slots demonstrates the value of established lessor relationships and strategic planning amid industry-wide supply constraints.
JetSMART’s focus on the A320neo family supports fleet commonality, operational efficiency, and environmental performance. The timing of the deliveries aligns with projected market growth in Latin America, which is expected to grow at a 4.40% compound annual rate through 2034. BOC Aviation’s strategy of partnering with high-growth airlines like JetSMART supports predictable cash flows and sustainable growth for both parties. The agreement also reflects broader trends in the Latin American aviation market, where ULCC penetration remains relatively low and opportunities for expansion are significant. As JetSMART grows, it is well-positioned to capture market share from traditional carriers constrained by higher costs or limited access to modern aircraft.
The competitive landscape in Latin American aviation is evolving as ULCCs like JetSMART challenge legacy carriers. JetSMART’s scale, efficiency, and brand recognition provide competitive advantages, while consistent industry awards reinforce its market position. Regulatory developments, such as open skies policies, have facilitated expansion and operational flexibility for multi-country ULCCs.
Traditional carriers have responded with their own low-cost subsidiaries and pricing initiatives, but JetSMART’s structural cost advantages are difficult to replicate. Strategic partnerships, such as the collaboration with American Airlines, enhance JetSMART’s competitive position by providing access to global distribution and loyalty programs.
Regulatory changes affecting slot allocation, airport access, and international routes continue to shape opportunities and challenges for airlines operating across multiple jurisdictions. Ongoing adaptation to these changes is essential for maximizing growth and maintaining compliance.
The September 2025 lease agreement between BOC Aviation and JetSMART is a significant milestone in Latin American aviation, reflecting the convergence of strategic vision, market opportunity, and operational excellence. The transaction demonstrates both companies’ confidence in the region’s long-term growth and their commitment to supporting that growth with modern, efficient aircraft.
The partnership’s success will depend on JetSMART’s ability to execute its ambitious expansion, BOC Aviation’s continued access to modern aircraft, and the broader development of Latin American aviation markets. The agreement validates the ULCC model’s potential in emerging markets and highlights the critical role of aircraft leasing in enabling airline growth strategies. As the industry navigates supply chain challenges and evolving market dynamics, partnerships like this provide valuable insights into sustainable growth and competition in global aviation.
What is the significance of the BOC Aviation,JetSMART lease agreement? When will the aircraft be delivered to JetSMART? How does this agreement fit into JetSMART’s growth strategy? What are current lease rates for A320neo family aircraft? What challenges does the aircraft leasing industry currently face? Sources: BOC Aviation
BOC Aviation and JetSMART Forge Strategic Partnership with Three-Aircraft Lease Deal Amid Latin American Aviation Growth
Background on the Deal and Key Players
JetSMART’s Strategic Expansion and Market Position
BOC Aviation’s Role in Global Aircraft Leasing
Latin American Aviation Market Dynamics
Aircraft Leasing Market Economics and Trends
Supply Chain Challenges and Industry Outlook
Strategic Implications and Growth Trajectories
Market Competition and Regulatory Environment
Conclusion
FAQ
The agreement provides JetSMART with three new Airbus A320neo family aircraft, supporting its expansion plans in Latin America and reflecting the strong demand for modern, fuel-efficient aircraft.
The two A321neo and one A320neo aircraft are scheduled for delivery in 2027, though industry-wide supply chain challenges could result in delays.
JetSMART aims to operate 120 aircraft by 2031 and carry 100 million passengers by 2028. Access to new, efficient aircraft is essential to achieving these goals and maintaining its position as South America’s largest ULCC.
Lease rates for new A320neo aircraft are around $400,000 per month, while A321neo variants can reach $460,000 per month, reflecting the premium for advanced technology and efficiency.
Persistent supply chain disruptions are causing delivery delays and increasing lease rates. Lessors and airlines must adapt fleet planning and financing strategies to navigate these uncertainties.
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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