Boeing made its debut as an operating lessor investor on 1 June with a $30 million investment in BOC Aviation – a move that Airbus is not looking to repeat.
The Bank of China’s aircraft leasing unit identified the original equipment manufacturer (OEM) as an investor in its $1.11 billion initial public offering of shares on the Hong Kong Stock Exchange along with 11 other cornerstone investors.
Boeing says the move is in line with "a number of strategic investments and partnerships" the OEM has made across its business "to ensure continued growth".
But John Leahy, Airbus’s chief operating officer for customers, speaking at a briefing in Hamburg, told Airfinance Journal that he is "surprised that Boeing did it".
"We believe in working with lessors, not picking one or two as the winners and trying to support them," he said, adding: "If I were one of the other lessors, I’d have more than a few words to say to them about that."
Leahy notes operating lessors make up "about 50% of production" and with "15 or 16 lessors out there that finance either through speculative orders or through sale and leaseback, how do you pick which one you want to invest in?"
BOC Aviation’s chief executive officer, Robert Martin, tells Airfinance Journal the move is an "investment, full stop".
He maintains that Boeing’s investment will not affect the lessor’s future fleet decisions.
"We are actively talking to both manufacturers about aircraft going forwards," he says.
The move has raised a few eyebrows in the aviation finance market because it marks the first time the OEM has made such an investment.
"We are all scratching our heads over why Boeing would want to be involved and whether this will have any impact on other lessors or other manufacturers," says a London-based financier.
An operating lessor source echoes his comments, adding: "I think it is safe to say this is highly unusual."
However, Steven Udvar-Hazy, chief executive officer of Air Lease Corporation (ALC), says he is "not concerned" by the investment, noting that Bank of China recently extended $90 million in financing to ALC as part of a $3.13 billion credit facility, or "three times what Boeing is investing in BOC Aviation".
Another lessor source agrees, emphasising that $30 million is a "tiny investment that Boeing would likely exit after a six-month lock-up period."
Jack.Dutton@euromoneyplc.com, Laura.Mueller@euromoneyplc.com and Michael.Allen@euromoneyplc.com
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