Narrative
Full Description
Project narrative
Prior to November 28, 2018, BOC Aviation Limited — a Chinese state-owned aircraft leasing company and wholly-owned subsidiary of Bank of China (BOC) — entered into an operating lease agreement with Norwegian Air Shuttle ASA — a Norwegian low-cost airline listed on the Oslo Stock Exchange — for one Boeing 787-9 Dreamliner aircraft. This aircraft was powered by RollsRoyce Trent 1000 TEN engines. The aircraft was delivered on November 28, 2018.
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. Norwegian Air Shuttle ASA is a Norwegian low-cost airline listed on the Oslo Stock Exchange. In 2020, after financial problems, BOC Aviation Limited became a major shareholder at 12.7%.