Ireland-Based Lessor Avolon's Sky-High Move: Places 140 Aircraft Order With Airbus And Boeing

Aircraft leasing company Avolon has agreed to order 100 A321neo aircraft from Airbus SE EADSY and 40 737 MAX aircraft from Boeing Co BA.

Avolon's Chinese owner Bohai Leasing Co Ltd said the value of the Airbus orders was $12.95 billion and that of Boeing was about $4.9 billion, as per Reuters.

The aircraft are scheduled for delivery in 2032. Both orders are binding contracts subject to approval by shareholders of Bohai Leasing, Avolon's 70% shareholder, which is anticipated before year-end.

The orderbook expansion extends Avolon's owned, managed, and committed fleet from 897 at September 30, 2023, to 1037 aircraft.

The A320neo and 737 MAX family of aircraft reduce fuel use and carbon emissions by up to 20% compared to the aircrafts they will replace.

"The scale of our orderbook reflects the strength of Avolon's balance sheet, our proven ability to execute swiftly, and the longstanding relationships we have with both Airbus and Boeing," said Andy Cronin, CEO of Avolon.

Boeing also noted that the Ireland-based lessor ordered 40 737-8s in June. Brad McMullen, Boeing's senior vice president of Commercial Sales and Marketing, said, "This repeat order, in the same year, demonstrates its confidence in the 737-8 and the value the airplane brings to its customers."

With this latest agreement, Avolon's total firm order-tally directly from Airbus rises to 632 aircraft. In September, Avolon ordered 20 A330neo aircraft to take advantage of growing global widebody demand.

Price Action: BA shares are trading higher by 0.67% at $249.75 on the last check Tuesday.

Photo Via Avolon