Lessor Avolon has announced "a commitment to order 40 Boeing 737 MAX aircraft", with delivery scheduled for between 2027 and 2030.
The aircraft are valued at over $4bn based on current list price, with the transaction subject only to approval by shareholders of Bohai Leasing Co., Ltd., Avolon’s 70% shareholder, which the lessor said is "anticipated before the end of May".
"This commitment builds on our strong relationship with Boeing and demonstrates our confidence in the long-term demand for this aircraft type. It will increase the overall size of Avolon’s owned, managed and committed fleet to 870 aircraft,"the leasing company said, adding that the aircraft would "increase the proportion of new technology fuel-efficient aircraft in its fleet".
"This commitment with Boeing underlines our confidence in the positive momentum in the aviation market, and increases our portfolio of young, modern, fuel-efficient aircraft," said chief executive Andy Cronin.
"With strong demand for our new technology orderbook, and delivery slots at a premium, it strengthens and extends our delivery profile with Boeing," Cronin added, a day after Boeing announced it hopes to increase production of its 737 range in 2023.