Singapore’s growing strategic presence in global aviation was underscored this week as Colombia’s national airline, Avianca, finalized a key fleet expansion deal with Singapore-based aircraft lessor BOC Aviation. The agreement reflects deepening commercial ties between the two countries, even as Singapore’s sovereign wealth fund—among the world’s most influential institutional investors—marked a notable shift in its financial exposure to Colombian debt markets.
On June 5, BOC Aviation confirmed it had signed a purchase agreement with Airbus for nine new A320neo aircraft, all of which will be leased to Avianca from 2027 onward. The transaction is part of Avianca’s broader fleet renewal strategy and underscores BOC Aviation’s continued confidence in Latin America’s expanding air travel market.
“We are pleased to reaffirm our strategic relationship with BOC Aviation through this agreement,” said Francisco Raddatz, Chief Procurement Officer at ABRA Group, the holding company of Avianca. “This transaction supports our fleet renewal strategy and our commitment to operating modern, fuel-efficient aircraft.”
Avianca, the second oldest airline in the world, is in the midst of a long-term re-fleeting program. In 2022, it placed an order for 88 Airbus A320neo jets with options for 50 more, with deliveries running through 2031. The new agreement brings its total pending A320neo deliveries to 87.
Singapore: Aviation Powerhouse and Asia’s Gateway
BOC Aviation is one of the world’s largest aircraft lessors, with a fleet of 829 aircraft and engines leased to 93 airlines in 48 countries as of March 2025. Headquartered in Singapore, the company plays a pivotal role in aviation financing from Asia to the Americas, reinforcing the city-state’s position not only as a travel hub, but also as a key node in global capital and aircraft mobility.
Singapore’s Changi Airport is widely regarded as East Asia’s premier air connectivity hub, offering direct links to major cities such as Beijing, Tokyo, Jakarta, Hanoi, Bangkok and Hong Kong. Its efficiency, innovation, and seamless connectivity have made it a preferred stopover and connection point for global travelers – especially as air traffic rebounds in the post-pandemic era.
Having built over decades an ecosystem around aviation finance, logistics, and infrastructure, the Avianca deal with a Singapore-based company reveals that the South American nation is uniquely positioned to connect the continent with Asia’s booming markets. Complementing Changi as a world-class airport, the Port Authority of Singapore is also one of the most advanced logistics and transshipment centers in the world, handling over 37 million TEUs annually. As one of the busiest – and most automated ports globally – it reinforces Singapore’s stature as a critical gateway for both passengers and goods traversing East Asia.
While commercial and aviation links between Colombia and Singapore are growing, financial signals are also becoming more nuanced as the city-state strengthens its ties with the Pacific Alliance trading bloc. According to Bloomberg, Singapore’s sovereign wealth fund – among the largest and most active in the world – was one of the top sellers of Colombian government debt in 2024. Net foreign outflows from TES bonds totaled 2 trillion pesos over the past year, driven in part by risk rebalancing among large institutional investors.
For BOC Aviation, the latest agreement with Avianca follows a similar lease arrangement in May 2025 with Gulf Air for nine A320neo aircraft. These deals align with the company’s strategy of maintaining a diversified and technologically advanced fleet, while expanding into high-growth regions.
“Working again with Avianca demonstrates our commitment to supporting airline partners in Latin America,” said Steven Townend, CEO of BOC Aviation. “These deliveries position us well for incremental future growth as we continue to expand our industry-leading latest generation fleet.”
As Avianca gears up for the delivery of more efficient, narrow-body jets suited for regional and continental routes, the deal also signals confidence in Latin America’s long-term passenger growth trajectory. As a member of StarAlliance, Avianca currently code shares with partner Singapore Airlines through key hubs.
From airspace to direct foreign investment, Singapore’s relationship with Colombia is becoming increasingly multifaceted and interconnected. With Changi Airport and Port of Singapore serving as global benchmarks in logistics and connectivity, Singapore continues to extend its influence well beyond Asia. The new Avianca lease deal illustrates that Singapore is not only financing the future of air travel but also facilitating critical links between new and expanding markets.
