(Yicai) July 2 -- Avolon Holdings, a unit of Bohai Leasing, one of China’s biggest aircraft leasers, will take over an order for 11 Airbus A321Neo planes from US low-cost carrier Frontier Airlines for an undisclosed sum.

Under agreements signed on June 30, Avolon will buy the 11 aircraft from Frontier Airlines through a subsidiary, Beijing-headquartered Bohai Leasing said yesterday. They have a combined catalogue price of around USD1.43 billion, though the actual amount will be subject to the deal’s terms.

Dublin-based Avolon, in which Bohai Leasing owns a 70 percent stake, is the world's second-largest commercial aircraft leasing company.

In addition to not disclosing further financial details of the deal, Bohai Leasing did not mention the reasons for Frontier Airlines' decision to sell the aircraft, which are scheduled for delivery between this November and next June.

Frontier Group Holdings, the listed parent company of Frontier Airlines, had a net loss of USD137 million last year, with a year-end debt-to-asset ratio approaching 93 percent. Operating revenue was around USD3.7 billion.

The purchase is expected to help Avolon capitalize on strong demand in the aircraft leasing market, enhancing its ability to provide diversified fleet solutions to its airline clients, according to the announcement.

Shares of Bohai Leasing [SHE: 000415] closed up 1.7 percent at CNY4.22 (US 60 cents) each today, taking its year-to-date gain to 4 percent. The wider Shenzhen market tumbled 3.9 percent.

Bohai Leasing had a fleet of about 1,160 aircraft at the end of last year -- 660 owned and managed and 500 on order -- serving almost 140 carriers in 61 countries, according to its annual report.

Editor: Emmi Laine