BOC Aviation, an aircraft leasing firm owned by the Bank of China, said it signed 52 leases last year, making it the 'busiest year ever' since the company was formed in 1993.

A quarter of the transactions were completed in December, it said in a statement.

Twenty of the 52 aircraft were acquired through the purchase-and-leaseback (PLB) scheme, under which BOC Aviation buys the planes from the airline and leases it back to them, the statement said.

The arrangement allows the airline to continue using the aircraft without the debt obligation that comes with ownership. This will free up more capital for the airline amid a global credit crunch.

Apart from having to cope with slowing travel demand, airlines also must deal with volatility in foreign currencies, which will impact hedging strategies, analysts have said.

'December was the busiest month ever in our company's history,' BOC Aviation managing director and chief executive Robert Martin said in the statement.

'We view the current difficult economic condition as an excellent opportunity to add good quality customers and aircraft.'

Mr Martin said BOC will remain active in the PLB market this year, adding that 'airlines are expressing a lot of interest in PLB transactions as the global financial turmoil continues.'

The aviation industry has been among the hardest hit by the economic downturn as people cut back on business and leisure travel. Freight volumes have also fallen as global trade weaken.

The International Air Transport Association has said it expects the industry to lose US$2.5 billion (S$3.7 billion) in 2009 as a result of the economic crisis after losses of some US$5 billion in 2008. -- AFP