The moment we sent our newsletter yesterday, the news emerged that Air Lease Corporation (ALC) had signed a Letter of Intent (LOI) for 111 Airbus aircraft, which included the first order for the A350 freighter version and added to the mix was a new multi-million dollar ESG fund initiative.
ALC’s LOI covers all Airbus families: 25 A220-300s, 55 A321neos, 20 A321XLRs, four A330neos and seven A350Fs.
ALC and Airbus have jointly launched a multi-million dollar ESG fund initiative that will contribute towards investment into sustainable aviation development projects that will in the future be opened to multiple stakeholders from the aircraft leasing and financing community and beyond.
“This new order announcement is the culmination of many months of hard work and dedication by both organisations to optimise and fine tune the size and scope of this large aircraft transaction in view of the rapidly growing global airline demand to modernize their jet fleets through the ALC leasing medium,” said Steven F. Udvar-Hazy, Executive Chairman of Air Lease Corporation. “After lengthy and detailed consultations with several dozen of our strategic airline customers around the world, we are focusing this comprehensive order on the most desirable and in demand aircraft types, covering the A220, A321neo, A330neo and A350 families.”
Udvar-Hazy added: "ALC was the launch customer for the very popular A321LR and XLR versions. Now, we become the launch lessor for the A350F and by far the largest lessor customer for the A220. We had the vision to be first adopters of the A321 and are convinced we have made the right choice again on the A220 and A350F, responding to what we see the market will need in the period of recovery ahead. In addition we are very enthusiastic to have inked a partnership for a sustainability fund which will contribute to the green future for our industry.”
“With this major order, we underscore our confidence not only in the strong future and growth of global commercial air transport, but in ALC’s business model, in our specific aircraft purchase decisions including, for the first time, the new A350 Freighter, and finally in our long term view that ordering new aircraft is an optimum investment of our shareholder capital,” said John L. Plueger, Air Lease Corporation CEO and President. “Moreover, we and Airbus hereby announce the first ever joint ESG initiative in aircraft procurement by creating a multi-million dollar fund for sustainable aviation development projects critical to the future."
For Airbus chief commercial officer, Christian Scherer, ALC’s order has signalled that the industry is “moving beyond the Covid doldrums” and also endorses the A350F. “With foresight, ALC is solidifying its order portfolio for the most desirable aircraft types as we exit the crisis and in particular, it has seen the formidable value the A350F brings to the cargo market,” he said. “ALC’s endorsement confirms the global enthusiasm we see for this quantum leap in the freighter space and we applaud its insightfulness in selecting it and in beating everyone to the finish line for the first A350F order announcement. In addition we agreed to make our sustainable aviation vision part of this agreement which is a priority for us both.”