BOC Aviation and Loong Air Confirm Three Airbus A320NEO Aircraft Deal

BOC Aviation and Loong Air Solidify Partnership with Three-Aircraft Deal

In a significant move for the Chinese aviation sector, global aircraft leasing giant BOC Aviation has finalized an agreement with Zhejiang Loong Airlines for three new Airbus A320NEO aircraft. This transaction underscores a broader industry trend towards fleet modernization, emphasizing fuel efficiency and technological advancement. As air travel continues its robust recovery, particularly in the Asia-Pacific region, deals like this signal confidence in sustained growth and the strategic importance of equipping airlines with next-generation assets. The partnership not only enhances Loong Air’s operational capabilities but also strengthens BOC Aviation’s already substantial footprint in one of the world’s most dynamic aviation markets.

The agreement, announced on October 28, 2025, involves three aircraft from BOC Aviation’s existing order book, slated for delivery in 2027. This arrangement allows Loong Air to expand its fleet with state-of-the-art equipment without the immediate capital outlay required for a direct purchase. For BOC Aviation, a member of the Bank of China Group, it represents a continuation of its strategy to place high-demand, fuel-efficient aircraft with growing carriers. The choice of the Airbus A320NEO, a market leader in the single-aisle category, reflects a shared commitment to operational efficiency and reduced environmental impact, aligning with global aviation goals.

The Players: A Global Lessor and a Regional Powerhouse

BOC Aviation stands as a formidable force in the aircraft leasing industry. Headquartered in Singapore and listed on the Hong Kong Stock Exchange, the company boasts a massive portfolio. As of June 30, 2025, its owned, managed, and on-order fleet comprised 834 aircraft and engines, serving 92 airlines across 45 countries and regions. The company’s business model is centered on maintaining a young, modern, and fuel-efficient fleet, often selling aircraft at their “midlife” to ensure its portfolio remains technologically current. This latest placement with Loong Air is a testament to its ongoing strategy of supporting airline growth through flexible and efficient fleet solutions.

Zhejiang Loong Airlines, founded in 2011, holds a unique position as the only local airline in Zhejiang Province providing both passenger and cargo services. Operating from its base at Hangzhou Xiaoshan International Airport, Loong Air has seen impressive growth since launching passenger services in December 2013. Its fleet has expanded to 74 aircraft, serving over 140 regional and international routes. This agreement to add three A320NEOs is a clear step towards further modernization and expansion, enabling the airline to enhance its service offerings and compete more effectively in the bustling Chinese market.

“We are proud to continue expanding our presence in China through this transaction with Loong Air, which will add three more technologically advanced and fuel-efficient Airbus A320NEO into its fleet.” – Steven Townend, CEO and Managing Director, BOC Aviation.

The Aircraft: Why the Airbus A320NEO is in High Demand

The centerpiece of this deal is the Airbus A320NEO (New Engine Option). This aircraft is not just an incremental update to the original A320; it represents a significant leap forward in efficiency and performance. The A320NEO family has captured approximately 60% of the market share for single-aisle aircraft, a testament to its popularity among airlines worldwide. Its success is built on a foundation of proven reliability combined with cutting-edge innovation, making it a preferred choice for carriers focused on optimizing their operations.

The primary driver of the A320NEO’s appeal is its remarkable fuel efficiency. The aircraft delivers a 15-20% reduction in fuel consumption compared to previous-generation models. This is achieved through two key innovations: new-generation engines and Airbus’s signature “Sharklet” wingtip devices. For this specific deal, the aircraft will be powered by CFM LEAP-1A engines, which are renowned for their performance and reliability. This efficiency translates directly into lower operating costs for airlines and a significantly reduced environmental footprint, with lower CO2 emissions and a quieter noise profile.

Beyond the operational benefits, the A320NEO also offers an enhanced passenger experience. It features the Airbus “Airspace” cabin, which is designed for greater comfort with wider seats, larger overhead storage bins, and modern aesthetics. As of September 2025, the demand for this aircraft family remains incredibly strong, with over 11,000 orders from more than 130 customers globally. This sustained demand highlights the A320NEO’s role as a cornerstone of modern airline fleets.

“The signing of this agreement marks another solid step forward in the strategic cooperation between BOC Aviation and Loong Air.” – Liu Qihong, Chairman of Loong Air.

Conclusion: A Strategic Step Forward for Asian Aviation

The lease agreement between BOC Aviation and Loong Air is more than a simple transaction; it is a reflection of key trends shaping the modern aviation landscape. It highlights the strategic push by airlines to modernize their fleets with more efficient and environmentally friendly aircraft. For Loong Air, this deal provides a clear path to enhancing its competitive edge with a technologically advanced fleet, allowing it to better serve its growing network from the tech hub of Hangzhou. For BOC Aviation, it reinforces its position as a leading lessor in the critical Chinese market and demonstrates its commitment to providing airlines with the assets they need to succeed.

Looking ahead, this partnership signifies continued confidence in the growth of the Asia-Pacific aviation sector. The choice of the A320NEO underscores an industry-wide pivot towards sustainability and operational efficiency. As Loong Air integrates these new aircraft in 2027, it will be better positioned to meet rising passenger demand while managing costs and environmental responsibilities. This deal serves as a microcosm of the broader symbiotic relationship between lessors and airlines, a partnership that will continue to drive innovation and growth in the skies for years to come.

FAQ

Question: Who are the main parties involved in this agreement?
Answer: The agreement is between BOC Aviation, a global aircraft operating leasing company, and Zhejiang Loong Airlines (Loong Air), a carrier based in Hangzhou, China.

Question: What aircraft are included in the deal?
Answer: The lease is for three new Airbus A320NEO aircraft, which will be powered by CFM LEAP-1A engines.

Question: When will the aircraft be delivered?
Answer: All three aircraft are scheduled for delivery to Loong Air in 2027.

Question: What is the significance of the Airbus A320NEO?
Answer: The A320NEO is a highly popular single-aisle aircraft known for its fuel efficiency, offering a 15-20% improvement over previous models. This reduces operating costs and lowers emissions, making it a top choice for airlines modernizing their fleets.

Sources: BOC Aviation