Irish-based lessor Avolon has recently announced its intention to order 40 Boeing 737 Max jets, which would be delivered over the course of 2027-2030. The provisional agreement is valued at over $4 billion at catalog prices and is subject to shareholder approval from 70%-owner Bohai Leasing. This commitment is a testament to Avolon’s confidence in the positive momentum of the aviation market, as well as its desire to expand its portfolio to 870 owned, managed, or committed aircraft.
“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 Andy Cronin, Avolon’s CEO.
Avolon’s CEO, Andy Cronin, notes that the new commitment will also help the company’s airline customers plan beyond the robust post-Covid traffic recovery and prepare for future growth, while reducing their carbon emissions. The leasing company sees this investment as an opportunity to strengthen and extend its delivery profile with Boeing, which could provide long-term benefits to the aviation industry.
It is worth noting that Avolon was responsible for delivering the first Max to its customer in 2017, and in February this year, delivered 1000th MAX produced by the American manufacturer.Â
While Avolon has not specified the variants to be covered by the agreement, it is clear that this investment in new technology will help the lessor remain competitive in the marketplace. All 737 Max aircraft are powered by the CFM International Leap-1B engine, and the specific version ordered by Avolon has yet to be announced.
The Dublin-based company is a major customer of the American manufacturer, although their relationship was not without tension: in May 2022, Avolon’s then CEO Domhnal Slattery declared that Boeing had “lost its way”. The lessor had cancelled orders for more than a hundred 737 MAX during the pandemic. That all seems to be behind it now.
Avolon completed 31 leases during the first quarter of this year, including new contracts, renewals and extensions. In that period, it delivered a total of nine new airplanes to thirteen customers.
While the acquisition of Gecas has made Aercap the largest leasing company in the industry, Avolon’s fleet of around 600 aircraft – plus more than 250 aircraft already ordered – is also impressive. By adding 40 more Boeing 737 Max aircraft, Avolon is betting on the recovery of aviation and its future growth potential.
