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Thursday 23 January 2014

BOC Aviation likely to supply Airbus A320 planes to Tata-SIA

Singapore-based BOC Aviation looks poised to supply Airbus A320 aircraft to Tata SIA
 Airlines Ltd. The move is an important step in plans by Tata Sons and Singapore Airlines to set up a full-service airline, according to a Reuters report. The fleet of 20 planes would initially be sourced from leasing companies, rather than purchased directly from Airbus.

The decision by the airline to opt for Airbus A320 triggered a race for the lucrative mandate between aircraft leasing companies gathering in Dublin for annual industry meetings this week. Industry sources said the deal, or a significant part of it, was expected to go to BOC Aviation, the aircraft leasing subsidiary of Bank of China.

Plane-makers frequently rely on lessors to supply spare capacity and establish their brand with new airlines, hoping to sell future batches of planes directly if the carrier expands.

Leasing companies are often able to supply aircraft from their own speculative inventories at shorter notice than the manufacturers, whose production lines are sold out years ahead.

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