Boeing has announced another sizeable contract for its 737 MAX, with 40 units ordered by leading aircraft lessor Avolon.
More 737 MAX Aircraft Ordered
Avolon and Boeing say that 40 units have been ordered for the 737-8, which remains a prevalent option for airlines and lessors.
Expanding a portfolio at Avolon already consists of several 737 MAX variants, including the 737-8 and 737-10. As a result of the newest order announced today, the total orders are brought to over 110 units.
Avolon is not just a repeat customer for the 737 MAX but the recently announced deal represents their second order this year. In June, Avolon ordered the 737-8s as well. That results in 80 commitments this year alone for the same aircraft type.
Boeing says the deal is now subject to shareholder approval by Bohai Leasing Co, Ltd, which acts as the main shareholder for Avolon. Once an agreement is finalised, it will reflect on Boeing’s Orders and Deliveries.
The 737-8 offers customers of Avolon not just fantastic efficiency but also what is described as better flexibility network-wide. This is evident through many customers moving towards the next generation of aircraft.
Who Are Avolon?
Avolon is a leading global aviation finance company, acting as a critical lessor that deploys its aircraft to customers on short and long-term contracts.
Data indicates Avolon works with nearly 150 airlines across 65 countries with almost 1000 aircraft managed as part of a committed fleet.
Aircraft lessors such as Avolon represent a crucial part of the industry in sourcing aircraft for companies that cannot order directly from a plane maker such as Boeing.
Boeing 737 MAX Deal Part Of A Larger Order
Alongside a Boeing 737 MAX aircraft deal, Avolon also committed to 100 Airbus A321neos. As a result, 140 aircraft were purchased in the day with a view to eventual customer deployment.
The deal with Airbus meant that its total orders for the program sit close to 200 total units, highlighting the A321neo’s solid place within the ever-growing industry.
Comments From Executives
Today’s order reflects our continuing optimism in the outlook for the aviation sector and strengthens our ability to meet customer needs in delivery slots out to 2030 when the availability of aircraft is very limited. We have now committed to 80 new, fuel-efficient 737 MAX airplanes this year, supporting the transformation of our fleet to lower emissions airplanes. Avolon has been a long-standing supporter of the 737 MAX platform, delivering the 1000th 737 MAX produced earlier this year and the first ever 737 MAX in 2017. It is a pleasure to partner again with Boeing on this new order.Avolon CEO Andy Cronin.
With long-term travel demand expected to remain strong, we are ready to support lessors looking to increase their single-aisle portfolios with fuel-efficient jets capable of operating across various route networks. Avolon continues to be a significant and much valued customer for the 737 program. This repeat order, in the same year, demonstrates its confidence in the 737-8 and the value the airplane brings to its customers.Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing