Bavaria International Aircraft Leasing (BIAL), part of the Munich-headquartered Schörghuber Corporate Group, has two good reasons to celebrate: BIAL is enjoying its 25th anniversary as a global aircraft leasing company. Today successfully involved in growth markets such as Asia, Russia and India, BIAL has been able to hold steady in even the most turbulent of times in the aviation sector. Now, BIAL has decided on a forward-looking investment in new airplanes: The company has ordered a total of six new aircraft of the type Boeing 737-700 from the US manufacturer Boeing, with an option for six additional Boeing 737-700/800 aircraft. The list price of the six form aircraft orders amounts to approximately 300 million US dollars.
Expansion in the Chinese growth market
The aircraft are scheduled for delivery between 2005 and 2008. The first two airplanes have already been earmarked for long-term leasing to China Southern Airlines, one of China’s most successful airlines. “With China Southern Airlines we have again gained a strong partner who is especially successful in the rapidly growing air traffic market in Asia”, stated Robert Salzl, chairman of the management board of BIAL.
Most successful medium-range airplane in the world
The two new aircraft will be used for domestic routes in China. With 149 seats and a state-of-the-art passenger cabin including innovative audio/video systems, the Next-Generation Boeing Boeing 737-700 is one of today’s most successful medium-range airplanes. With over 5000 airplanes built, the Boeing 737 is the world’s most popular family of aircraft.
A 25-year history – BIAL has its roots in Germany’s postwar aviation industry
The foundation for BIAL as an aircraft leasing company was laid in 1979 with an order for six Boeing 737-200 aircraft. Prior to this date, however, Bavaria had already made its name as an operating charter airline. In 1958, the company was founded under the name of Bavaria Fluggesellschaft as one of what was then four German charter airlines and was subsequently built up by Josef Schörghuber. The first aircraft of Bavaria Fluggesellschaft took to the skies in April 1969, serving the route between Munich and Hanover. In 1974, Josef Schörghuber, himself a passionate private pilot and airplane enthusiast, took over the majority shares in the airline Germanair and subsequently merged the two airlines. In 1979 Bavaria - Germanair was sold to Hapag-Lloyd. He then went on to build up a fleet numbering, at one time, 31 aircraft, which are today leased long-term to various airlines around the world.
Success as an innovative niche provider
The aircraft leasing company’s current portfolio of modern aircraft comprises 25 airplanes from Boeing, Airbus and Bombardier. Over the past ten years, BIAL has more than doubled the number of aircraft in its fleet and has invested heavily in the medium-range aircraft sector. As an innovative niche provider and in its role as “launching customer”, the company has in the past recognized innovative trends and new developments on the airplane market early and used them to its advantage. BIAL was, for example, the first aircraft leasing company worldwide to order and successfully market the Next-Generation Boeing 737 and the Being 717 upon their launch.
The business success of BIAL is based, above all, on the company’s ability to react flexibly to new developments on the market and accommodate the needs of the individual customer. The company’s strategy of endeavoring to always offer state-of-the-art aircraft has also proven its worth over the last 25 years – a strategy that involves not only the timely sale of older airplanes but also investments in more modern state - of - the - art - aircraft. In line with this strategy, the company sold off older Boeing 737s in 2004 which are being replaced by the six newly ordered Boeing 737-700/800 (plus six options for the same type). The company is therefore set on a steady course for the future.