Narrative
Full Description
Project narrative
On June 16, 2019, financial close was reached on a deal in which BOC Aviation Limited — a Chinese state-owned leasing company — entered into an operating lease agreement with Norwegian Air Sweden AB — a Sweden-incorporated and headquartered airline and wholly-owned subsidiary of Norway's Norwegian Air Shuttle ASA — for one Boeing 787-9 aircraft.
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. 2. In aviation finance, financial close typically occurs on or around the delivery date of the final aircraft. As financial close occurred on June 16, 2019, the aircraft was almost certainly delivered on or around that date. Thus AidData has coded the actual_implementation_start_date and actual_implementation_completion_date fields as June 16, 2019 and marked the actual_implementation_start_date_estimated? and actual_implementation_completion_date fields as True. 3. In 2021, Norwegian Air Shuttle later established a similarly-named subsidiary, Norwegian Air Sweden AOC AB.