IndiGo Signs Financing Deal With Singapore's BOC Aviation For 10 Airbus Aircraft

All 10 aircraft powered by CFM LEAP-1A engines are scheduled for delivery in 2023, said BOC Aviation

BOC Aviation Limited, a Singapore-headquartered firm, and IndiGo, India's largest airline, have entered into a finance lease transaction involving 10 Airbus A320NEO aircraft to further expand its fleet, a PTI report said on Wednesday. According to the report, all 10 aircraft powered by CFM LEAP-1A engines are scheduled for delivery in 2023, said BOC Aviation.

Steven Townend, deputy managing director and chief financial officer at BOC Aviation, said, "We are delighted to be embarking on another transaction with our long-time customer IndiGo, to enable the airline to expand its fleet with the latest technology aircraft. This showcases our ability to deploy alternative financing structures, to continue our long-term sustainable growth," he said.

Riyaz Peer Mohamed, chief aircraft acquisition and financing officer at IndiGo, said, "We are pleased to enhance our partnership with BOC Aviation with the lease agreement for these 10 aircraft." This extended collaboration with BOC Aviation is part of IndiGo's expansion strategy across domestic and global markets.

"India is currently among the fastest-growing civil aviation markets in the world and these aircraft will help IndiGo consolidate its position in the region," he said.

BOC Aviation is a leading global aircraft operating leasing firm with a fleet of 652 aircraft owned, managed, and on order. Its owned and managed fleet was leased to 91 airlines in 42 countries and regions worldwide as of June 30, 2023.

Meanwhile, InterGlobe Aviation, parent firm of IndiGo, is amongst the fastest-growing low-cost carriers in the world. With its fleet of over 300 aircraft, the airline is operating about 1,900 daily flights and connecting 79 domestic destinations and will soon further grow its footprint to 32 international destinations. 

InterGlobe Aviation clocked a net profit of Rs 3,090.6 crore for the quarter ending in June 2023, a turnaround from the net loss of Rs 1,064 crore reported in the same quarter last year. IndiGo's revenue from operations rose 29.8 per cent to reach Rs 16,683.1 in the first quarter of the financial year 2023-24 (Q1FY24) compared to Rs 12,855 crore reported in the same period last year. 

The rise in profit reflects a sharp rise in domestic travel during the quarter and a notable decrease in average fuel prices.  "We produced strong operational performance and welcomed the highest number of quarterly passengers which enabled us to generate the highest ever quarterly revenue and net profit for the quarter ended June 2023," IndiGo CEO Pieter Elbers said.