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Overview

BOC Aviation leases four Airbus A320-200 aircraft to Vueling Airlines

Commitment Year•2013Country of Activity•SpainDirect Recipient Country of Incorporation•SpainOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2013
Start (planned)
Jan 1, 2013
End (planned)
Jun 30, 2013
End (actual)
Jun 30, 2013

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned companies

  • BOC Aviation Limited

Receiving agencies

Private Sector

  • Vueling Airlines, S.A.

Loan description

BOC Aviation leases four Airbus A320-200 aircraft to Vueling Airlines

Interest type•Unknown

Narrative

Full Description

Project narrative

In January 2013, BOC Aviation Limited — a Chinese state-owned leasing company — signed a leasing agreement with Vueling Airlines, S.A. — a Spanish low-cost airline based in Barcelona with its largest shareholder being Spain's flag carrier airline Iberia Líneas Aéreas de España, S.A. Operadora, Sociedad Unipersonal, a subsidiary of International Consolidated Airlines Group S.A., popularly known as International Airlines Group (IAG), a British-Spanish multinational airline holding company incorporated in Spain, headquartered in London, the United Kingdom, and listed on the London Stock Exchange and the Madrid Stock Exchange — for four new Airbus A320-200 aircraft. These aircraft, all equipped with IAE V2522-A5 SelectOne engines, were scheduled to be delivered in the first half of 2013. The aircraft were successfully delivered in the first half of 2013.

Staff comments

1. A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments. Under a capital lease (a financial arrangement where the lessee/borrower uses an asset and pays regular installments plus interest to the lender/lessor), rental payments are usually classified as interest and obligation payments, similarly to a mortgage (with the interest calculated each rental period on the outstanding obligation balance). AidData codes capital leases as loans.