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Overview

BOC Aviation leases three Airbus A320 aircraft to Qantas Airways

Commitment Year•2011Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 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

  • Qantas Airways Limited

Loan description

BOC Aviation leases three Airbus A320 aircraft to Qantas Airways

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2011, BOC Aviation Limited entered into an agreement with Qantas Airways Limited — Australia's flag carrier airline — to extend leases on three Airbus A320 aircraft already on lease with Qantas, being operated by Australia's low-cost subsidiary airline Jetstar Airways Pty Ltd. These aircraft were first leased to Qantas in 2004 by Singapore Aircraft Leasing Enterprise Pte. Ltd. (SALE) prior to Bank of China (BOC)'s purchase of SALE and transformation of it into BOC Aviation Limited.

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.