Asian lessor delays Boeing 787s deliveries

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Asian lessor delays Boeing 787s deliveries

Asian aircraft lessor BOC Aviation 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 American Airlines Group had received two Boeing Co 787 s this month, the first deliveries globally since May 2021, after the US Federal Aviation Administration approved the resumption of deliveries due to production problems.

Chief Operating Officer David Walton told analysts on Thursday evening that BOC Aviation, which has a fleet of 390 owned planes, expects to receive seven more 787 s this year.

Air Lease Corp and AerCap Holdings NV have reported airplane delivery delays, as well as other large lessors.

BOC Aviation sank to a US $313 million net loss in the first half, in line with guidance provided last month, due to the US $518 million after-tax impact of writedowns of 17 aircraft that remain stuck in Russia.

More than 400 leased planes worth almost US $10 billion remain in Russia after sanctions were imposed in Ukraine after the invasion of Ukraine forced lessors to cancel their contracts with Russian airlines, which refused to return most of the planes.

BOC Aviation filed an insurance claim in June.

The lessor had held cash collateral representing 28 per cent of the value of the planes it was able to draw down when they were not returned, which Walton said was the highest among its peer group.

Robert Martin, the chief executive of BOC Aviation, said that with emerging markets where we're concerned about the ability to repossess, we'll take more security.