Avolon has added 200 new technology aircraft to its orderbook this year direct from OEMs, building on previous orders for 20 Airbus A330neos in September and 40 737 MAXs from Boeing in June. The orderbook expansion increases 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 older generation aircraft that they will replace.
The scale of these new commitments supports Avolon’s ability to provide customers with fuel-efficient aircraft into the next decade.
Andy Cronin, CEO of Avolon, said, “Today’s orders strengthen our delivery pipeline and reflect our confidence in the long-term outlook for aviation. We have committed to direct orders for 200 new, fuel-efficient aircraft this year, supporting the transformation of our fleet to lower emissions aircraft. 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.”
Both orders are binding contracts subject only to approval by shareholders of Bohai Leasing Co., Ltd., Avolon’s 70% shareholder, which is anticipated before year end.
“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,” said Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing. “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.”
“This investment in the A321neo is a testimony by one of the world’s leading lessors to the unprecedented value the world’s most versatile single aisle aircraft generates for its lessor and operator base. It points to Avolon’s vision to secure slots longer term for its strong airline customer portfolio with the right aircraft for the future. This way Avolon and its customers can benefit from the strong wave of growth and replacements being observed globally across all markets,” said Christian Scherer, Chief Commercial Officer and Head of International at Airbus.
With this latest agreement, Avolon’s total firm order-tally directly from Airbus rises to 632 aircraft, and includes A320, A330 and A350 Families. In September, Avolon ordered 20 A330neo aircraft to take advantage of growing global widebody demand.