SINGAPORE- BOC Aviation Limited signs purchase-and-leaseback agreements with Frontier Airlines (F9) for 15 new Airbus A320neo aircraft.
The aircraft will be delivered in 2025 and 2026, expanding BOC Aviation’s revenue base and fleet of latest-generation aircraft.
Frontier 15 Airbus A320neo
Robert Fanning, Vice President of Fleet for Frontier Airlines, emphasizes the two-decade partnership between Frontier and BOC Aviation. He states the new A320neos will support Frontier’s continued growth.
Steven Townend, Chief Executive Officer and Managing Director of BOC Aviation highlights Frontier’s position as the largest A320neo operator in the United States. He notes that the transaction leverages BOC Aviation’s strong liquidity and builds on its existing pipeline of aircraft scheduled for delivery beyond 2024.
The deal strengthens BOC Aviation’s relationship with a long-standing customer while aligning with its strategy to invest in fuel-efficient, environmentally friendly aircraft. It also demonstrates Frontier’s commitment to fleet modernization and expansion.
Denver-based Frontier Airlines has around 197 Airbus A320neo family aircraft on order as of August 2024.
BOC Aviation, a global aircraft leasing leader, boasts a fleet of 680 aircraft owned, managed, and on order. Further, the company leases to 93 airlines across 47 countries and regions as of June 30, 2024.
Listed on the Hong Kong Stock Exchange, BOC Aviation maintains its headquarters in Singapore with offices in Dublin, London, New York, and Tianjin.
A321XLR Order Cancellation and Adjustments
Earlier this month, Frontier Airlines revised its Airbus aircraft order, canceling plans for the A321XLR in favor of additional A321neo aircraft. This decision marks a significant shift in the ultra-low-cost carrier’s fleet strategy.
Originally, Frontier was set to become the first U.S. airline to operate the A321XLR, with an order for 18 aircraft. The A321XLR, Airbus’ long-range variant of the A320 family, is designed for “long and thin” routes, offering extended-range capabilities.
Frontier’s decision to forgo the A321XLR aligns with its recent financial challenges. The airline has struggled with profitability, prompting a reevaluation of its ambitious pre-pandemic growth plans.
Frontier Airlines restructures its Airbus delivery schedule, deferring 54 aircraft from 2025-2028 to 2029 and beyond. This adjustment reflects the airline’s response to ongoing profitability challenges.
The revised order significantly reduces near-term deliveries:
- 2025 deliveries decrease from 42 to 21 aircraft.
- 2026 deliveries drop from 41 to 22 aircraft.
- 2027 sees a reduction from 42 to 34 aircraft.
- 2028 deliveries decrease from 40 to 34 aircraft.
Frontier increases its order for later years: 2029 deliveries increase from 22 to 36 aircraft. 2030 and beyond see an addition of 40 aircraft.
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