100 Airbus A320neo Family Jets Ordered

SMBC Aviation Capital is on a spending spree with 100 Airbus jets ordered on the first day of the Farnborough Airshow.

The Dublin-based lessor has placed a firm order for 100 of the A320neo family jets, including both the high-capacity and base models, bringing its total orders to 200 for the show following a Boeing deal.

The transactions show SMBC’s ambition to remain at the very top of the global aviation finance space, and this backlog enhancement will enable next-generation narrowbodies to continue to be delivered into the mid-2030s.

SMBC’s New Airbus A320neo Family Order

At Farnborough, SMBC Aviation Capital announced a fresh contract for 100 of the A320neo family jets, committing to 65 A321neos and 35 A320neos. The first part of the stretched-model order underscores the immense demand over the past several years.

With the aircraft slated for delivery in the next decade, not just for the Dublin-based lessor but also for its future customers awaiting the newest narrowbodies, this contract provides a predictable and secure stream of deliveries.

SMBC said the deal will give customers access to planes in an environment that does not require a purchase directly from the manufacturer, Airbus, and thus the heightened financial risks that not all airlines can take on.

The continuation of a 25-year partnership between SMBC and Airbus sees this latest contract as one of many signed between the pair. It highlights the strong demand that remains for the A320neo family as the manufacturer aims to scale production up to 70-75 aircraft following multiple delays.

For SMBC as well, the addition of further A320neo family jets to the backlog means that carriers across every major region will have the chance to look at a strong volume of A321neos or A320neos for their operations. Whether it’s renewal or growth, the 200 total jets ordered during the Farnborough Airshow add to an already strong backlog.

Selecting a jet like the A321neo allows SMBC to pitch the higher-capacity model in the family to airlines that need an upgauge in their current fleet mix. Given the A321neo’s demand, the slots for this are scarce deep into this decade and the early part of the next decade.

Paired with the A320neo, both of these aircraft offer companies double-digit fuel burn and emission reductions compared with the models they replace and represent the safest and most logical bet for a lessor expanding its backlog to meet forecasted demand.

Boeing Also Wins SMBC Order

The Airbus deal for 100 jets, however, only represents half of the SMBC Farnborough Airshow story thus far. On the other side, the lessor selected the 737 MAX and secured orders for 100 additional models to bring the total to 200 narrowbodies on Day 1.

This part of the deal sees the airline split its 737 MAX contract between 60 of the largest 737-10s and 40 of the middle-ground and already certified 737-8 jets. This commitment brings the MAX portfolio to around the 450 mark for SMBC and makes it among the biggest customers for the series.

While the end destination of these jets has yet to be confirmed, the 200 aircraft will be deployed across a mix of expected businesses globally. As deliveries approach, more information is likely to come on who will pick these up.

The 737-10 portion of the Boeing deal and the largest of the two variants selected from a size and units commitment standpoint has been of particular notice. When paired with the A321neo deal, it shows the industry pattern emerging that flags the requirement for more seats on single-aisle jets.

Airlines and lessors pushing for more seats on single-aisles are now forming the backbone of current studies launched by Boeing around its next commercial aircraft, which will act as the successor to the 737 MAX.