TUI UK & BOC Aviation has this week signed a significant lease agreement, which will help bolster their strategies into the medium-term.
Whilst details are relatively sparse, there are some things we know about this agreement.
Without further ado, let’s get into it…
The Deal Between TUI UK & BOC Aviation…
The lease transaction will cover 14 Boeing 737 MAX 8 aircraft at the UK subsidiary of the holiday company.
Furthermore, it is understood that all aircraft will be powered by the CFM LEAP-1B engines, and will be delivered between 2025 and 2026.
Commenting on the deal was Steven Townend, Chief Executive Officer and Managing Director, BOC Aviation:
“With this financing we are once more working with our existing customer, TUI, as it builds its fleet of new generation aircraft”.
“With the delivery of these aircraft anticipated over the next two years, this transaction will contribute to our investment and revenue pipelines.”
Growth for the Future…
For TUI UK, this is a strong step as the carrier prepares for the next few busy travel seasons.
Such leasing arrangements will enable the carrier to maximise profitability on their forward bookings for 2025 and beyond.
Furthermore, travel demand has been that strong for companies like TUI that bookings have been extended into 2026.
Overall, it also represents strong business for BOC Aviation.
Such transactions are pretty much the standard for most airlines, as financing previous orders offers further liquidity.
All eyes will be on what this liquidity will unlock for TUI UK going into the future.
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