Avolon (a lessor based out of Dublin, Ireland), has made a commitment to order 40 Boeing 737 MAX aircraft.
The aircraft are scheduled for delivery between 2027 and 2030 – although it is unlikely that the aircraft will ever be delivered in this house livery, rather they will in the livery of Avolon’s customers.
No distinct breakdowns of the commitment of the sub-types to be ordered have bee provided.
This commitment to purchase is worth over US$4 billion at the current Boeing list prices.
Avolon delivered the first 737 MAX in 2017, along with the one thousandth 737 MAX earlier this year, marking a strong relationship with Boeing, as well as having the long-term availability of the type to its customers.
Once complete, the order will increase the overall size of Avolon’s owned, managed and committed fleet to 870 aircraft. The aircraft will also be powered by CFM International LEAP-1B engines.
The transaction is subject only to approval by shareholders of Bohai Leasing Co., Ltd., Avolon’s 70% shareholder, which is anticipated before the end of May.
In Quotes
Andy Cronin, CEO of Avolon, commented:
“This commitment with Boeing underlines our confidence in the positive momentum in the aviation market, and increases our portfolio of young, modern, fuel-efficient aircraft. With strong demand for our new technology orderbook, and delivery slots at a premium, it strengthens and extends our delivery profile with Boeing. This commitment will also support our airline customers who are looking to plan beyond the robust post-Covid traffic recovery and prepare for future growth, while also reducing their carbon emissions.”
The Ever-expanding Leasing Operation
Leasing fills an important gap for airlines – be they in startup, development, or in long-term operation – and leases look good as operational expenditure, as opposed to the perceived evil of capital expenditure.
Avolon’s portfolio of Airbus A320ceo, Airbus A320neo, Airbus A330-200/300, Airbus A330-900neo, Airbus A350-900 as well as Boeing 737 NextGen, Boeing 737 MAX, Boeing 777-300ER and Boeing 787-8/9 Dreamliners shows they are force, with the buying power that is needed to deliver the saving leasing to customers promises.
It’ll be interesting who picks up the leases over the coming years, as the aviation industry attempts to move on.
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