Commercial Aviation
Akasa Air and BOC Aviation Partner to Expand Fleet with Boeing 737 8
Akasa Air signs a leaseback deal with BOC Aviation for three Boeing 737 8 jets to support fleet growth and sustainability in India.
In a significant move for the Indian aviation sector, Singapore-based global aircraft lessor BOC Aviation has announced a purchase and leaseback agreement with Akasa Air for three new Boeing 737-8 aircraft. This partnership, revealed on November 4, 2025, underscores the strategic growth trajectory of Akasa Air, one of India’s newest and most dynamic Airlines. The deal not only facilitates Akasa’s rapid fleet expansion but also signals strong international investor confidence in the burgeoning Indian aviation market. The long-term operating leases are a testament to the airline’s disciplined and sustainable approach to growth since its launch in August 2022.
The agreement is centered on the Boeing 737-8, a modern and highly fuel-efficient narrow-body aircraft, which aligns perfectly with Akasa Air’s commitment to operational efficiency and environmental Sustainability. Each of the three aircraft will be powered by CFM LEAP-1B engines, known for their reduced fuel consumption and lower emissions. With the first Delivery scheduled for January 2026, this transaction is a critical step in Akasa’s ambitious plan to significantly scale its operations, enhance connectivity across domestic and international routes, and solidify its position in a competitive landscape. For BOC Aviation, this marks the addition of a promising new customer and a deeper investment into one of the world’s fastest-growing aviation markets.
Akasa Air has quickly emerged as a formidable player in the Indian skies. Since commencing operations in August 2022, the airline has served over 18 million passengers and expanded its network to 23 domestic and five international destinations. Its growth strategy is notably aggressive, with a firm Order for 226 Boeing 737 MAX airplanes, aiming to reach this fleet size by 2032. This disciplined expansion involves adding 25-30 aircraft annually, a pace that requires robust financial and operational partnerships. The airline is also focused on increasing its international footprint, with plans to grow its international available seat kilometers (ASKs) from 18% to 40% in the coming years.
On the other side of the agreement is BOC Aviation, a leading global aircraft operating leasing company and a member of the Bank of China group. Headquartered in Singapore and listed on the Hong Kong Stock Exchange, BOC Aviation boasts a massive portfolio. As of September 30, 2025, it owned, managed, or had on order 812 aircraft and engines. Its fleet is leased to 88 airlines across 46 countries, highlighting its global reach and influence. The company is known for maintaining one of the youngest fleets in the industry, with an average aircraft age of under four years, which aligns with the modern, efficient assets sought by airlines like Akasa Air.
“We are pleased to welcome Akasa as a new customer for BOC Aviation at this exciting stage of their development. The Boeing 737-8 is one of the world’s most popular single-aisle jets, and this transaction leverages our ability to provide capital to support our customers’ fleet expansion.” – Paul Kent, Chief Commercial Officer, BOC Aviation.
The choice of the Boeing 737-8 is a strategic one, reflecting a global industry trend towards greater efficiency and sustainability. As part of the 737 MAX family, this aircraft incorporates advanced technologies that deliver significant operational benefits. It offers a 20% reduction in fuel use and CO2 emissions compared to previous-generation 737s. This efficiency is crucial for an airline like Akasa, which operates in a price-sensitive market and is committed to a sustainable operational model. Furthermore, the aircraft boasts a 40% smaller noise footprint, addressing environmental concerns and improving the passenger experience.
Powering these aircraft are the state-of-the-art CFM LEAP-1B engines. Produced by a joint venture between GE Aviation and Safran Aircraft Engines, the LEAP engine family is renowned for its technological advancements, including ceramic matrix composites and 3D-printed components. These innovations contribute to a 15% improvement in fuel consumption and CO2 emissions compared to their predecessors. For Akasa Air, operating aircraft with these engines means lower fuel costs, a reduced carbon footprint, and enhanced reliability, key factors for maintaining a competitive edge and delivering on its promise of a dependable flying experience.
The purchase and leaseback model is another critical element of this deal’s strategic value. This financing structure allows Akasa Air to expand its fleet without the massive capital outlay required for direct purchases. By selling the aircraft to BOC Aviation and immediately leasing them back, Akasa frees up capital that can be reinvested into other areas of its operations, such as network expansion, technology, and customer service. This asset-light approach provides the financial flexibility necessary to sustain its rapid growth trajectory in a capital-intensive industry.
This agreement is more than just a transaction; it is a powerful endorsement of Akasa Air’s business model and the potential of the Indian aviation market. For Akasa, partnering with a globally reputed lessor like BOC Aviation provides not just aircraft, but also a stamp of credibility and access to deep expertise in asset management. As stated by Priya Mehra, Akasa’s Chief of Governance & Strategic Acquisitions, the Partnerships strengthens the airline’s long-term growth strategy and its commitment to expanding connectivity. It enables the airline to continue its disciplined fleet expansion, ensuring it has the modern, efficient aircraft needed to compete effectively and build a reliable network. Looking ahead, this deal positions Akasa Air to aggressively pursue its international ambitions. With plans to launch new routes to destinations within a six-hour flight radius, including East Africa, having a steady stream of new aircraft is paramount. The Boeing 737-8 is well-suited for these short-to-medium-haul international routes. For the broader Indian aviation market, this agreement reinforces its status as a global growth hotspot, attracting significant international investment and leasing activity. It highlights a larger trend where new and growing carriers leverage the flexibility of aircraft leasing to scale up and challenge established players, ultimately fostering greater competition and providing more choices for travelers.
Question: What is the core of the agreement between Akasa Air and BOC Aviation? Question: What specific aircraft and engines are involved in this deal? Question: When are the aircraft scheduled for delivery? Question: Why is this agreement significant for Akasa Air’s strategy? Sources: BOC Aviation Press Release
Akasa Air and BOC Aviation Forge Partnership for Fleet Expansion
The Key Players: A Symbiotic Partnership
The Asset: The Boeing 737-8 and its Strategic Value
Strategic Implications and Future Outlook
FAQ
Answer: Akasa Air has entered into a purchase and leaseback agreement with BOC Aviation for three new Boeing 737-8 aircraft on long-term operating leases.
Answer: The deal is for three Boeing 737-8 aircraft, each equipped with CFM LEAP-1B engines.
Answer: The first of the three aircraft is scheduled for delivery in January 2026.
Answer: It provides Akasa Air with modern, fuel-efficient aircraft to support its rapid domestic and international expansion plans while using a flexible financing model (leaseback) that preserves capital for other strategic investments.
Photo Credit: Akasa Air
Aircraft Orders & Deliveries
Qanot Sharq Receives First Airbus A321XLR in Central Asia
Qanot Sharq becomes Central Asia’s first operator of the Airbus A321XLR, expanding long-haul routes to North America and Asia from Tashkent.
This article is based on an official press release from Airbus and Qanot Sharq.
On December 19, 2025, Qanot Sharq, Uzbekistan’s first private airline, officially took delivery of its first Airbus A321XLR (Extra Long Range) aircraft. The delivery, facilitated through a lease agreement with Air Lease Corporation (ALC), marks a historic milestone for aviation in the region, as Qanot Sharq becomes the launch operator of the A321XLR in Central Asia and the Commonwealth of Independent States (CIS).
This aircraft is the first of four confirmed A321XLR units destined for the carrier. According to the official announcement, the airline intends to utilize the aircraft’s extended range to open new long-haul markets that were previously inaccessible to single-aisle jets, including planned services to North America and East Asia.
The newly delivered A321XLR is powered by CFM International LEAP-1A engines and features a two-class layout designed to balance capacity with passenger comfort on longer sectors. The aircraft accommodates a total of 190 passengers.
In addition to the seating configuration, the aircraft is fitted with Airbus’ “Airspace” cabin interior. Key features include customizable LED lighting, lower cabin altitude settings to reduce jet lag, and XL overhead bins that provide 60% more storage capacity compared to previous generation aircraft.
Nosir Abdugafarov, the owner of Qanot Sharq, emphasized the strategic importance of the delivery in a statement regarding the fleet expansion.
“The A321XLR’s exceptional range and efficiency will allow us to offer greater comfort and convenience while maintaining highly competitive operating economics.”
, Nosir Abdugafarov, Owner of Qanot Sharq
The introduction of the A321XLR allows Qanot Sharq to deploy a narrowbody aircraft on routes typically reserved for widebody jets. With a range of up to 4,700 nautical miles (8,700 km), the airline plans to connect Tashkent with destinations in Europe, Asia, and North America.
According to the airline’s strategic roadmap, the new fleet will support route expansion to Sanya (China) and Busan (South Korea). Furthermore, the airline has explicitly outlined plans to serve New York (JFK) via Budapest. While the A321XLR has impressive range, the distance between Tashkent and New York (approximately 5,500 nm) necessitates a technical stop. Budapest will serve as this intermediate point, potentially allowing the airline to tap into passenger demand between Central Europe and the United States, subject to regulatory approvals. AJ Abedin, Senior Vice President of Marketing at Air Lease Corporation, noted the geographical advantages available to the airline.
“Qanot Sharq is uniquely positioned to unlock the full potential of the A321XLR due to its strategic location in Uzbekistan, bridging Europe and Asia.”
, AJ Abedin, SVP Marketing, Air Lease Corporation
The delivery of the A321XLR signals a distinct shift in the competitive landscape of Uzbek aviation. Until now, long-haul flights from Tashkent,specifically to the United States,have been the exclusive domain of the state-owned flag carrier, Uzbekistan Airways, which utilizes Boeing 787 Dreamliners for non-stop service.
By adopting the A321XLR, Qanot Sharq appears to be pursuing a “long-haul low-cost” hybrid model. The A321XLR burns approximately 30% less fuel per seat than previous-generation aircraft, allowing the private carrier to operate long routes with significantly lower trip costs than its state-owned competitor. While the one-stop service via Budapest will result in a longer total travel time compared to Uzbekistan Airways’ direct flights, the lower operating costs could allow Qanot Sharq to offer more competitive fares, appealing to price-sensitive travelers and labor migrants.
Furthermore, the choice of Budapest as a stopover is strategic. If Qanot Sharq secures “Fifth Freedom” rights,which are currently a subject of regulatory negotiation,it could monetize the empty seats on the Budapest-New York sector, effectively competing in the transatlantic market while serving its primary base in Central Asia.
Sources: Airbus Press Release, Air Lease Corporation
Qanot Sharq Becomes First Central Asian Operator of Airbus A321XLR
Aircraft Configuration and Capabilities
Strategic Network Expansion
AirPro News Analysis: The Long-Haul Low-Cost Shift
Sources
Photo Credit: Airbus
Airlines Strategy
Kenya Airways Plans Secondary Hub in Accra with Project Kifaru
Kenya Airways advances plans for a secondary hub at Accra’s Kotoka Airport, leveraging partnerships and regional aircraft to boost intra-African connectivity.
This article summarizes reporting by AFRAA and official statements from Kenya Airways.
Kenya Airways (KQ) is moving forward with strategic plans to establish a secondary operational hub at Kotoka International Airport (ACC) in Accra, Ghana. According to reporting by the African Airlines Association (AFRAA) and recent company statements, this initiative represents a critical pillar of “Project Kifaru,” the airlines‘s three-year recovery and growth roadmap.
The proposed expansion aims to deepen intra-African connectivity by positioning Accra as a pivotal node for West African operations. Rather than launching a wholly-owned subsidiary, a model that requires heavy capital expenditure, Kenya Airways intends to utilize a partnership-driven approach, leveraging existing relationships with regional carriers to feed long-haul networks.
While the Kenyan government formally requested permission for the hub in May 2025, Kenya Airways CEO Allan Kilavuka confirmed in December 2025 that the plan remains under active study. A final decision on the full execution of the project is expected in 2026.
The core of the Accra strategy involves basing aircraft directly in West Africa to serve high-demand regional routes. According to details emerging from the planning phase, Kenya Airways intends to deploy three Embraer E190-E1 aircraft to Kotoka International Airport. These aircraft will facilitate regional connections, feeding passengers into the carrier’s long-haul network and supporting the logistics needs of the region.
This operational shift marks a departure from the traditional “hub-and-spoke” model centered exclusively on Nairobi. By establishing a presence in Ghana, KQ aims to capture traffic in a market currently dominated by competitors such as Ethiopian Airlines (via its ASKY partner in Lomé) and Air Côte d’Ivoire.
A key component of this strategy is the airline’s collaboration with Ghana-based Africa World Airlines (AWA). Kenya Airways signed a codeshare agreement with AWA in May 2022. This partnership allows KQ to connect passengers from its Nairobi-Accra service to AWA’s domestic and regional network, covering destinations like Kumasi, Takoradi, Lagos, and Abuja.
Industry observers note that this “capital-light” model reduces the financial risks associated with starting a new airline from scratch. Instead of competing directly on every thin route, KQ can rely on AWA to provide feed traffic while focusing its own metal on key trunk routes. The push for a West African hub comes as Kenya Airways navigates a complex financial recovery. The airline reported a significant milestone in the 2024 full financial year, posting an operating profit of Ksh 10.5 billion and a net profit of Ksh 5.4 billion, its first profit in 11 years. This resurgence provided the initial confidence to pursue the growth phase of Project Kifaru.
However, the first half of 2025 presented renewed challenges. The airline reported a Ksh 12.2 billion loss for the period, attributed largely to currency volatility and the grounding of its Boeing 787 fleet due to global spare parts shortages. These financial realities underscore the necessity of the proposed low-capital expansion model in Accra.
The strategy focuses on collaboration with existing African carriers rather than creating a new airline from scratch.
, Summary of Kenya Airways’ strategic approach
The viability of the Accra hub relies heavily on the Single African Air Transport Market (SAATM) and “Fifth Freedom” rights, which allow an airline to fly between two foreign countries. West Africa has been a leader in implementing these protocols, making Accra a legally feasible location for a secondary hub.
Furthermore, the African Continental Free Trade Area (AfCFTA) secretariat is headquartered in Accra. Kenya Airways is positioning itself to support the trade bloc by facilitating the movement of people and cargo between East and West Africa. The airline has already introduced Boeing 737-800 freighters to serve key destinations including Lagos, Dakar, Freetown, and Monrovia.
The decision to delay a final “go/no-go” confirmation until 2026 suggests a prudent approach by Kenya Airways management. While the West African market is lucrative, it is also saturated with aggressive competitors like Air Peace and the well-entrenched ASKY/Ethiopian Airlines alliance. By opting for a partnership model with Africa World Airlines rather than a full subsidiary, KQ avoids the “cash burn” trap that led to the collapse of previous pan-African airline ventures. If successful, this could serve as a blueprint for other mid-sized African carriers looking to expand without overleveraging their balance sheets.
What aircraft will be based in Accra? When will the hub become operational? How does this affect the Nairobi hub?
Kenya Airways Advances Plans for Secondary Hub in Accra Under ‘Project Kifaru’
Operational Strategy: The ‘Mini-Hub’ Model
Partnership with Africa World Airlines
Financial Context and ‘Project Kifaru’
Regulatory Landscape and Competition
AirPro News Analysis
Frequently Asked Questions
Current plans indicate that Kenya Airways intends to base three Embraer E190-E1 aircraft at Kotoka International Airport.
While planning is underway and government requests have been filed, a final decision on full execution is not expected until 2026.
Nairobi (Jomo Kenyatta International Airport) remains the primary hub. The Accra facility is designed as a secondary node to improve regional connectivity and feed traffic back into the global network.
Sources
Photo Credit: Embraer – E190
Commercial Aviation
Derazona Helicopters Receives First H160 for Energy Missions in Southeast Asia
Airbus delivers the first H160 to Derazona Helicopters in Indonesia, enhancing offshore oil and gas transport with advanced fuel-efficient technology.
This article is based on an official press release from Airbus Helicopters.
On December 19, 2025, Airbus Helicopters officially delivered the first H160 rotorcraft to Derazona Helicopters (PT. Derazona Air Service) in Jakarta, Indonesia. According to the manufacturer’s announcement, this delivery represents a significant regional milestone, as Derazona becomes the first operator in Southeast Asia to utilize the H160 specifically for energy sector missions, including offshore oil and gas transport.
The handover marks the culmination of a strategic acquisition process that began with an initial order in April 2021. Derazona, a historic Indonesian aviation company established in 1971, intends to deploy the medium-class helicopter for a variety of critical missions, ranging from offshore transport to utility operations and commercial passenger services.
The introduction of the H160 into the Indonesian market signals a shift toward modernizing aging fleets in the archipelago. Derazona Helicopters stated that the aircraft will play a pivotal role in their expansion within the oil and gas sector, a primary economic driver for the region.
In a statement regarding the delivery, Ramadi Widyardiono, Director of Production at Derazona Helicopters, emphasized the operational advantages of the new airframe:
“The arrival of our first H160 marks an exciting chapter for Derazona Helicopters. As the pioneer operator of this aircraft for energy missions in Southeast Asia, we are eager to deploy its unique capabilities to serve our various clients with the highest levels of safety and efficiency. The H160’s proven performance will be key to reinforcing our position as a leader in helicopter services in Southeast Asia.”
Airbus executives echoed this sentiment, highlighting the aircraft’s suitability for the demanding geography of Indonesia. Regis Magnac, Vice President Head of Energy, Leasing and Global Accounts at Airbus Helicopters, noted the importance of this partnership:
“We are proud to see the H160 enter service in Southeast Asia, cementing our relationship with Derazona as they become the region’s launch customer for energy missions. The H160 represents a true generational leap, built to be an efficient, reliable, and comfortable workhorse, perfectly suited for the demanding operational requirements of the Indonesian energy sector.”
According to technical data provided by Airbus, the H160 is designed to replace previous-generation medium helicopters such as the AS365 Dauphin and H155. The aircraft incorporates several proprietary technologies aimed at improving safety and reducing environmental impact.
Key technical features cited in the release include: Airbus claims the H160 delivers a 15% reduction in fuel burn compared to previous generation engines, aligning with the energy sector’s increasing focus on reducing Scope 1 and 2 emissions in their logistics supply chains.
The delivery of the H160 to Derazona Helicopters reflects a broader trend we are observing across the Asia-Pacific aviation market: the prioritization of “eco-efficient” logistics. As oil and gas majors face stricter carbon reporting requirements, the pressure cascades down to their logistics providers.
By adopting the H160, Derazona is not merely upgrading its fleet age; it is positioning itself competitively to bid for contracts with energy multinationals that now weigh carbon footprint heavily in their tender processes. The move away from legacy airframes like the Bell 412 or Sikorsky S-76 toward next-generation composite aircraft suggests that fuel efficiency is becoming as critical a metric as payload capacity in the offshore sector.
Who is the operator of the new H160? What is the primary use of this aircraft? How does the H160 improve upon older helicopters? When was this specific aircraft ordered? Sources: Airbus Helicopters Press Release
Derazona Helicopters Becomes Southeast Asia’s First H160 Energy Operator
Modernizing Indonesia’s Energy Fleet
Technical Profile: The H160
AirPro News Analysis
Frequently Asked Questions
The operator is PT. Derazona Air Service (Derazona Helicopters), an Indonesian aviation company headquartered at Halim Perdanakusuma Airport, Jakarta.
It will be used primarily for offshore energy transport (supporting oil rigs), as well as utility missions and VIP transport.
The H160 offers a 15% reduction in fuel consumption, significantly lower noise levels due to Blue Edge™ blades, and advanced Helionix® avionics for improved safety.
Derazona originally placed the order for this H160 in April 2021.
Photo Credit: Airbus
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