Avolon, a leading aircraft lessor, has boosted its aircraft backlog by announcing a firm order with Airbus for 100 A321neos.
More Airbus A321neos Ordered
As part of the deal, Avolon will take 100 additional A321neo aircraft. This means that their total orders for the program sit close to 200 units.
A deal with the European planemaker is substantial and reaffirms the importance of the A321neo in the market. Additionally, for Avolon as a leading lessor, the flexibility of the A321neo is a pivotal factor in committing to more.
For Airbus, their A321neo has been their best-selling plane this year alone. This stat has been aided substantially by a record-breaking order from Indigio for the type. However, an order is an order, and that reaffirms the interest in the series’ capabilities.
Avolon’s commitment to Airbus is ever-growing, with their firm order reaching 632 aircraft. As part of these contracts, the lessor plans to acquire A320, A330 and A350 family aircraft.
Comments From Executives
This order strengthens our delivery pipeline and reflects our confidence in the long-term growth outlook for aviation. Avolon now has 292 A320neo family aircraft on order, locking in our ability to support customers’ replacement and fleet expansion plans into the next decade. This order reflects the strength of Avolon’s balance sheet and our proven ability to execute transactions swiftly. We welcome the opportunity to enhance the longstanding relationship we have with Airbus and build on the order we made for 20 A330neos earlier this yearAndy Cronin, CEO of Avolon
The Increasing Need For Delivery Slots
Airbus’ A321neo has quickly risen to become one of the most in-demand aircraft across the industry.
Airbus’ continued development of the type has aided interest in the series to fill several fundamental niches where the plane maker sees a gap.
Due to Boeing not progressing with their own NMA or new aircraft until the 2030s, Airbus has also primarily been aided. As a result, while the 737 MAX exists, further developed variants such as the A321LR or A321XLR present more ideal options for some customers to replace ageing types such as the 757.
Ultimately, due to this interest, Airbus’s chief commercial officer cites the need for customers to get in now to secure delivery slots. If not confirmed now, the substantial waits for an available delivery timeframe will likely continue to stretch further.
This would sometimes be detrimental to some company’s future growth plans. It’s also why major companies such as Qantas and easyJet have gotten in early to acquire next-generation types, even if delivery only occurs in the 2030s.
These commitments now and eventual deliveries, such as for the A321neo family, will be essential to meet future growth.