Boullioun Aviation's order for 30 Airbus A320 family models signals its intent to limit the growth of subsidiary, Singapore Aircraft Leasing Enterprise (SALE), to widebodies. That was its original plan, but the two lessors strayed from it three years ago. Returning to that plan means Boullioun is ending its exclusive reliance on Boeing jets.
John Willingham, SALE's former managing director and now Boullioun's chief operating officer, explains that Seattle-based Boullioun originally intended to handle narrowbodies of all types while SALE was to offer only widebodies. They departed from that plan in 1996 for unique reasons. Boullioun wanted to order A320s, but was prohibited by a US ban on speculative orders by bank subsidiaries. SALE had closer ties to Airbus via Singapore Airlines, so Boullioun allowed SALE to negotiate and place that A320 order. Now that the US bank restrictions are gone, Boullioun intends to diverse its own portfolio with Airbus and Boeing narrowbodies. Its A320 deliveries will begin in 2002 when SALE receives the last of its A320s.
Boullioun has no widebody plans and Willingham confirms that SALE has no plans to order Boeing narrowbodies. Boullioun will continue to do the marketing for both itself and SALE, but will lease only narrowbodies. Except for the A320s, SALE's future will be solely in widebodies. The next move may see Boullioun buying SALE's A320s.
Source: Airline Business
