Singapore-based, Bank of Chinaowned, BOC Aviation closed 2009 with a portfolio of 142 aircraft saying it continued to deliver on its countercyclical strategy of expanding via purchase and leasebacks since the downturn in the aviation industry began in 2008.

The company took delivery of 48 aircraft in 2009, of which 23 were from purchase and leaseback deals closed during the year. BOC Aviation’s total assets exceeded US$5 billion for the first time since it was established 17 years ago. The company signed agreements to acquire a total of 29 aircraft worth over US$2 billion from six major airlines, of whom four were new customers: Air France, Alaska Airlines, Cathay Pacific and Virgin Blue.

Robert Martin, managing director & CEO of BOC Aviation said the countercyclical strategy planned in 2007 and executed since late 2008 has enabled the company to continuously improve the credit quality of its portfolio through the addition of financially sound airlines as customers.

According to Martin: “2009 was a landmark year for us as we built on business relationships with leading carriers that have a good strategy to ride out the cyclical downturn in the industry. Our risk management policy was put to the test and we are proud to say that no repossessions were required during the toughest year in aviation history,” he added.

The company also grew its fee income business by signing agreements as remarketing agent and lease manager for eight aircraft on behalf of European and Japanese financial institutions. At year end, BOC Aviation managed a total of 24 aircraft on behalf of third parties.

With a portfolio of aircraft all in service with 41 airlines in 26 countries as at 31 December 2009, BOC Aviation said it is confident of continued growth in the operating lease industry, particularly in the Asia-Pacific region.