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Overview

BOC Aviation leases six new Boeing 737NG aircraft to WestJet Airlines

Commitment Year•2007Country of Activity•CanadaDirect Recipient Country of Incorporation•CanadaOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 12, 2007
Start (planned)
Jan 1, 2010
End (planned)
Dec 31, 2011

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

  • WestJet Airlines Ltd.

Implementing agencies

Private Sector

  • The Boeing Company (TBC)

Loan description

BOC Aviation leases six new Boeing 737NG aircraft to WestJet Airlines

Interest type•Unknown

Narrative

Full Description

Project narrative

On July 12, 2007, BOC Aviation Pte. Lte. signed a letter of intent agreement with WestJet Airlines Ltd. — a Canadian airline — for the leasing of three new Boeing 737NG aircraft. The three aircraft were to be delivered in 2010, with two 700-series aircraft to be delivered in January and June 2010 respectively and one 800-series to be delivered in May 2010 from Boeing Company. Additionally, BOC Aviation extended an option to WestJet to lease a further three 737NG aircraft (two 700-series and one 800-series, with an option to convert the 700-series into 800-series) in 2011. Then, in October 26, 2007, WestJet exercised the option to lease the additional three aircraft. On December 14, 2011, Boeing delivered a Boeing 737-800 to WestJet under the lease.

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.