Published on May 31st, 2021 | by Alan Dwyer


SMBC Order More Boeing 737MAX Aircraft as Positive Results Released

Irish based leasing company, SMBC Aviation Capital has announced an increased order for 14 additional Boeing 737MAX aircraft with deliveries starting in late 2021. This announcement came as part of the company’s annual report which showed profits of $15.2 million despite the worst year the industry has ever experienced. SMBC had available liquidity of $4.9billion at year end on 31st March. Despite the difficult year for the industry, SMBC closed $3billion of new transactions with leading airline credits in the 12 months to the end of March 2021, equating to 29% of the pre-COVID portfolio. This includes $1.1billion of transactions in North America and airline including Southwest, Delta, United, Easyjet, Wizz and Peach.

SMBC CEO Peter Barrett

Commenting on the figures for the year, CEO of SMBC Aviation Capital, Peter Barrett said, “Despite the challenges and ongoing uncertainty from Covid-19, SMBC Aviation Capital’s balance sheet strength, focused high-quality asset portfolio and rapid realignment of CAPEX to close $3bn of transactions with leading airline credits, has anchored highly resilient performance over the year, strongly positioning us to be a leading beneficiary of the recovery now taking place. We believe that 2021 will be an inflection point for the industry and that our focus on the newest technology, lower carbon emitting, narrowbody aircraft types places us on the right side of customer demand for the short-haul and low-cost carrier led recovery that is underway. We are pleased to have concluded an agreement with Boeing for the purchase of 14 low-cost carriers configured 737MAX aircraft which is an aircraft we are seeing increased customer demand for following its successful return to service. As airlines focus on repairing their balance sheets, we expect to see increasing demand for our leasing product and we are strongly positioned to emerge from the crisis with renewed momentum and seize further opportunities that are aligned with our long-term strategy.”

SMBC Aviation Capital was established in 2001, the company was acquired in 2012 by a consortium comprising of two of Japan’s biggest companies SMFG and Sumitomo Corporation. At year-end, the leasing company had 85 airline customers across 36 countries and owned and managed almost 500 aircraft with over 80% of their fleet consisted of narrowbody aircraft.

In recent weeks, SMBC has delivered some Airbus A321NEO’s to Cebu Pacific Air of the Philippines and to Russian carrier Aeroflot. On 18th May, Airbus A321NEO RP-C4126 (c/n 10273) was delivered from the Airbus facilities in Hamburg to Manila via Muscat. This was followed on 20th May with the delivery of the first Airbus A321NEO for Aeroflot. VP-BRC (c/n 10314) was also delivered from Airbus in Hamburg to Moscow. This aircraft is the first Airbus A321NEO for Aeroflot as part of a five aircraft deal with the airline that includes another A321NEO and three A320NEOs. The rest of this order will be delivered in the coming weeks.

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