Aircraft lessor BOC Aviation says deliveries slipping due to manufacturer delays

BOC Aviation

18/08/2022 23:48

Aug 19 (Reuters) - Asian aircraft lessor BOC Aviation Ltd
 2588.HK  said nine aircraft deliveries due in the first half
had slipped into later periods because of manufacturer delays
related to supply-chain and regulatory issues as well as labour
shortages.
    The lessor said client American Airlines Group Inc  AAL.O 
had received two Boeing Co  BA.N  787s this month, the first
deliveries globally since May 2021 after the U.S. Federal
Aviation Administration approved the resumption of deliveries
following production problems.  urn:newsml:reuters.com:*:nL1N2ZM1BV
    BOC Aviation, which has a fleet of 390 owned planes, expects
to receive seven more 787s this year, Chief Operating Officer
David Walton told analysts on an earnings call on Thursday
evening.
    Other large lessors like AerCap Holdings NV  AER.N  and Air
Lease Corp  AL.N  have also reported airplane delivery delays.
 urn:newsml:reuters.com:*:nL4N2ZG4DI  urn:newsml:reuters.com:*:nL1N2ZN0Q3
    BOC Aviation swung to a $313 million net loss in the first
half, in line with guidance provided last month, due to the $518
million after-tax impact of writedowns of 17 aircraft that
remain stuck in Russia.
    More than 400 leased planes worth almost $10 billion remain
in Russia after sanctions imposed after the invasion of Ukraine
forced lessors to cancel their contracts with Russian airlines,
which then declined to return most of the planes.  urn:newsml:reuters.com:*:nL2N2VV0CN
    BOC Aviation said it had filed an insurance claim in June.
    The lessor had held cash collateral representing 28% of the
value of the planes that it was able to draw down when they were
not returned, which Walton said he believed was the highest
among its peer group.
     "You'll tend to find that with emerging markets where we're
concerned about the ability to repossess, then we will take more
security," BOC Aviation Chief Executive Robert Martin said.

 (Reporting by Jamie Freed in Sydney
Editing by Matthew Lewis)
 ((Jamie.Freed@thomsonreuters.com;))