International aircraft leasing company Avolon has become one of the first major launch lessors for the 737 MAX.
The leasing company announced a commitment to purchase 30 new narrow-body aircraft from Boeing at Farnborough today.
Avolon will purchase 10 737 MAX 8s and 5 737 MAX 9s as well as 10 Next-Generation 737-800s with reconfiguration rights for five 737 MAX aircraft.
Aircraft are scheduled for delivery form 2015 onwards in a deal valued at $2.3 billion at list prices.
Domhal Slattery, Avolon CEO said: “We are hugely proud to be announcing our second order with the Boeing company. Our first was at Farnborough in 2010 when as an infant start-up business we ordered 12 New Generation 737-800s, which was an enormous vote of confidence at the time.”
Avolon has since grown significantly and now has the youngest large lessor fleet in the world with 135 aircraft serving 32 customers in 20 countries.
“Today marks a very important milestone in the development of our business,” added Slattery. “There are two components to the order and we think that this is strategically important. The first part for the 10 New generation 737-800s is very important in our fleet planning as it is in addition to our current 737-800 program with Boeing which is effectively sold out. The demand for the 800 remains very strong on a global basis, but most importantly in these challenging economic times the capacity to finance these aircraft is strong.
“But more importantly, and more excitingly from our perspective in terms of our strategic vision is the order for the 20 737 MAX. We have blended between the 737-800 and the 737-900 MAX. We are already seeing a very strong demand from airlines for this aircraft. Avolon like to plan on a 10 year rolling basis so from our point of view locking in this very valuable real estate with Boeing really sets us on a very steady path for growth and development as the business moves forward.”
Commenting on the agreement, Ray Conner, CEO and president of Boeing Commercial Airplanes, added: “Avolon has a significant and strategic role to play in the aviation industry and we welcome them as one of the launch lessors of the 737 MAX. What this company has achieved in a short space of time is remarkable.”