BOC Aviation expects delivery delays for up to 30 Airbus and Boeing aircraft in 2019

    BOC Aviation reported (30-Jul-2019) it does not expect to meet its guidance of 79 aircraft to be delivered in 2019. The leasing company expects delivery delays could result in up to 30 aircraft being delayed beyond 2019, including three for which an airline customer has the right to acquire the aircraft on delivery. These presently comprise up to seven A320neo aircraft and up to 23 Boeing 737 MAX aircraft. 18 aircraft scheduled for delivery in 1H2019 were delayed, comprising 12 Airbus aircraft delayed primarily due to industrial constraints and six Boeing aircraft delayed primarily due to the 737 MAX grounding. BOC noted Boeing’s recent acknowledgement that the return to service date for 737 MAX aircraft has been further delayed. So far, this is equivalent to a six month delay from the start of the grounding in Mar-2019. BOC stated it therefore expects that some or all of its 23 remaining 737 MAX aircraft scheduled for delivery in 2019 will be delayed beyond 2019. BOC Aviation is working with Boeing on a revised delivery time frame.