Avolon have recently announced deals with both Boeing and Airbus at the Paris Airshow including an order for 40 B737 MAX aircraft which is scheduled for delivery between 2027 and 2030. This finalises a commitment that was officially announced in April 2023. They have also signed a Memorandum of Understanding (MOU) with Airbus for 20 A330-900s for delivery in 2026-2028.
The deal with Boeing is valued at over US$4 billion at current list prices. Having the 737 MAX will provide Avolon’s customers with greater flexibility across their network while reducing fuel use and emissions by up to 20%. On average each aeroplane will save up to 8 million pounds of CO2 annually compared to the aeroplanes it replaces. The 737 MAX models seat 162 to 210 passengers depending on configuration, and have a range of 3,500 nautical miles.
Andy Cronin, CEO of Avolon, commented “Today’s announcement reaffirms our long-standing partnership with Boeing and our support for their 737 MAX program. We are confident in the long-term demand from our customers for the 737 MAX, and this order extends our delivery pipeline out to 2030. The transitioning of the global fleet to more fuel-efficient new-technology aircraft is a priority for our industry, and we intend to play a leading role by supporting airlines achieving their sustainability objectives”.
Stan Deal, President and CEO of Boeing Commercial Airplanes, said “This order demonstrates the popularity of the 737-8 among the leasing community and the demand they are seeing from their customers for this airplane model. Avolon has a long-standing relationship with the 737 MAX program and recently took delivery of the 1,000th 737 MAX. We look forward to building on this strong relationship with a key leasing partner as they grow their Boeing portfolio of airplanes.”
Avolon also signed a memorandum of understanding with Airbus at the Show to order 20 Airbus A330neo aircraft. The new aircraft are scheduled to be delivered between 2026 and 2028. Avolon was a launch customer for the A330neo programme in 2014 and has fully placed its current widebody order book. The A330neo has a range of over 13,300km (7,200 nautical miles) and 25% lower fuel consumption and CO2 emissions compared to previous-generation aircraft. This agreement will also see 50 A320neo aircraft Avolon has on order with Airbus converted to the larger A321neo model.
Andy Cronin, CEO of Avolon, commented “We have been a strong supporter of the A330neo programme since its launch and, with our existing widebody orderbook fully placed, we are now locking in future growth in a supply constrained environment. Our expanded delivery pipeline allows us to offer our customers the A330neo’s range and reduced emissions, supporting their evolving fleet needs. Our recent aircraft orders and commitments reflect our confidence in the long-term growth trajectory of the aviation sector, which is outlined in our recent World Fleet Forecast projecting that the global passenger fleet will almost double by 2042.”
Christian Scherer, Chief Commercial Officer and Head of International at Airbus commented “It’s fantastic to see Avolon once again commit additional investment in the A330neo aircraft and lead the lessor market reordering widebody aircraft. Avolon’s vision and timing could not be better with this commitment for a further 20 aircraft to its portfolio. Avolon will benefit from the strong wave of growth and replacements that we currently observe across all markets.”
