Skip to content
AidData logo

Overview

BOC Aviation leases two Airbus A320NEO aircraft to ITA Airways

Commitment Year•2023Country of Activity•ItalyDirect Recipient Country of Incorporation•ItalyOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 1, 2023
Start (actual)
Sep 1, 2023
End (actual)
Oct 17, 2023

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

State-owned companies

  • Italia Trasporto Aereo S.p.A. (ITA Airways)

Loan description

BOC Aviation leases two Airbus A320NEO aircraft to ITA Airways

Interest type•Unknown

Narrative

Full Description

Project narrative

In or prior to September 2013, BOC Aviation Limited — a Chinese state-owned aircraft leasing company and wholly-owned subsidiary of Bank of China (BOC) — entered into a lease agreement with Italia Trasporto Aereo S.p.A. (ITA Airways) — an Italy-incorporated airline headquartered in Rome that is the flag carrier airline of Italy as a successor to Alitalia, wholly-owned at the time by Italy's Ministry of Economy and Finance — for two new Airbus A320NEO aircraft. The aircraft were new and described as very technologically advanced and fuel-efficient. The first aircraft was delivered in September 2023 and the second was delivered on or just prior to October 17, 2023.

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.