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BOC Aviation Signs Lease Agreement with SKY Airline

BOC Aviation Signs Lease Agreement with SKY Airline
BOC Aviation has finalized a purchase and leaseback agreement with Chilean low-cost carrier SKY Airline for three Airbus A321XLR aircraft. This deal marks SKY Airline as a new customer for the global aircraft lessor. The aircraft, equipped with Pratt & Whitney GTF engines, are slated for delivery in 2026 and 2027 and will be placed on long-term operating leases.
Strategic Partnership and Fleet Expansion
Steven Townend, Chief Executive Officer and Managing Director of BOC Aviation, expressed satisfaction in welcoming SKY as a new client, highlighting the airline’s commitment to expanding its fleet with the latest generation of fuel-efficient aircraft. Townend emphasized the significance of the Airbus A321XLR, noting that these aircraft represent the first of this model scheduled for delivery into BOC Aviation’s portfolio.
From SKY Airline’s perspective, CEO Daniel Belaunde underscored the importance of the partnership in supporting the airline’s growth trajectory. He pointed out that the addition of the Airbus A321XLR will enable SKY to broaden its network, offering more direct and affordable travel options while maintaining a focus on efficiency, sustainability, and delivering a high-quality customer experience.
Company Profiles and Market Context
Headquartered in Singapore and listed on the Hong Kong Stock Exchange (HKEx code: 2588), BOC Aviation manages a diverse portfolio of 815 aircraft and engines, either owned, managed, or on order. As of the end of 2025, its fleet was leased to 87 airlines across 46 countries and regions, supported by offices in Dublin, London, New York, and Tianjin.
SKY Airline operates exclusively Airbus A320neo and A321neo aircraft, making it the only airline in South America with a 100% neo fleet. Since commencing operations in 2001, SKY has transported over 70 million passengers and currently serves seven countries across the Americas. The airline has achieved a reduction in emissions per seat of approximately 30% since 2018. In January 2026, SKY was recognized by OAG and Cirium as the most punctual airline in Latin America and was named among the world’s 25 safest low-cost airlines by Airline Ratings.
Industry Implications and Leasing Sector Dynamics
This agreement arrives amid a challenging environment for aircraft lessors, who must navigate financial and operational risks in a highly competitive market. Airlines are increasingly cautious about expanding their fleets, compelling lessors to balance growth ambitions with prudent risk management. The addition of SKY Airline, a reputable and expanding carrier, is expected to strengthen BOC Aviation’s portfolio and market position.
Competitors such as AerCap may respond by adjusting their leasing strategies, potentially offering more competitive terms or innovative financing solutions as lessors compete for market share. This transaction highlights ongoing shifts within the aircraft leasing sector, where efficiency, sustainability, and adaptability remain central to the strategic priorities of both lessors and airlines.

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