Narrative
Full Description
Project narrative
On August 1, 2019, Bank of China Aviation announced that it had signed a lease agreement with Scoot Airlines ("Scoot") for four new Airbus A321neo aircraft. The terms of the lease are unknown. The aircraft feature Pratt & Whitney PurePower PW1100G-JM engines and were originally expected to be delivered in the second half of 2020. Campbell Wilson, Scoot's Chief Executive Officer described the impact of the aircraft, saying that "the A321neo aircraft offers additional capacity and range, unlocking new network growth possibilities for Scoot while enabling us to elevate the passenger experience in a commercially viable manner. Investing in new-generation aircraft and operating a young, fuel-efficient fleet is a cornerstone of Scoot’s strategy to achieve net zero carbon emissions by 2050." As of June 2021, three of the four A321neo aircraft had been delivered to Scoot.
Staff comments
1. Scoot is the low-cast arm of Singapore Airlines Group, flying to 67 destinations across 17 countries and territories from its base in Singapore. 2. AidData assumes that the agreement is a capital lease agreement. 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.