Avolon announces commitment to purchase 30 Boeing aircraft
20 737 MAXs and 10 Next-Generation 737-800 aircraft
Avolon committed fleet now stands at 135 aircraft
Farnborough, Dublin, Seattle | 11 July, 2012: Avolon, the international aircraft leasing company, and Boeing (NYSE: BA) today announced a commitment to purchase 30 new narrowbody aircraft, bringing Avolon’s committed fleet to 135 aircraft.
Avolon has committed to purchase 10 737 MAX 8s and 5 737 MAX 9s, as well as 10 Next-Generation 737-800s with reconfirmation rights for 5 737 MAX airplanes. The commitment has a list-price value of $2.3 billion.
- 20 Boeing 737 MAX, including MAX-8 and MAX-9 variants, as well as 10 Next-Generation 737-800s. The MAX commitment comprises of 15 737 MAX with reconfirmation rights for 5 additional 737 MAX aircraft
- Commitment valued at US$2.3 billion at list prices
- Positions Avolon as one of the first major launch lessors for the 737 MAX
- Aircraft scheduled for delivery from 2015 onwards
- Avolon’s committed fleet of 105 aircraft, excluding today’s commitment, is valued at US$4.9 billion
Avolon invests exclusively in modern fuel-efficient aircraft which demonstrate the strongest long-term value retention characteristics. Maintaining an appropriately-sized forward order book of high quality aircraft perfectly complements Avolon’s market-leading sale and leaseback financing activities and ensures that the business remains well-positioned as a full-service lessor to serve its growing global airline customer base. Avolon currently has a committed fleet of 135 aircraft and the youngest large lessor fleet in the world.
Avolon is owned by leading international investors: Government of Singapore Investment Corporation, CVC Capital Partners, Cinven and Oak Hill Capital Partners.
The 30 aircraft Boeing commitment comprises 20 of the newly-designed 737 MAX, which includes reconfirmation rights for 5 additional 737 MAX aircraft, and 10 Next-Generation 737-800 aircraft. The value of the commitment, at current list prices, is US$2.3 billion. This represents one of the first major lessor commitments for the new 737 MAX. The 10 Next-Generation 737-800s are scheduled for delivery from 2015 onwards while the 20 737 MAX aircraft, which combine both the MAX-8 and MAX-9 variants, will deliver from 2018 onwards.
The 30 aircraft commitment with Boeing follows a previous order for 12 Next-Generation 737-800s announced in July 2010, the first of which delivered recently to Japan Airlines.
Dómhnal Slattery, Avolon CEO, commented:
“We are pleased to announce our commitment to purchase an additional 30 new aircraft from Boeing which brings our committed fleet to 135 aircraft and builds on the success of our 12 Next Generation 737-800s announced in 2010. The 737-800 NG is a well-proven and hugely popular aircraft with airlines, investors and financiers and we are delighted to be adding more of the type to our portfolio. We are also proud to be one of the launch lessors for the 737 MAX, an aircraft which has already achieved strong success since its launch and which we believe will not only equal but outstrip the popularity of the 737 NG. Securing valuable, attractive positions early in the MAX programme ideally positions Avolon to best serve our global customer base.”
“Today’s announcement once again reflects both the scale of our ambition and the strength of our financial backing. It also reflects our commitment to our customers as we enhance our fleet, grow our business and continue to deliver superior risk-adjusted returns for our shareholders.”
Ray Conner, Boeing Commercial Airplanes President and CEO, commented:
“Boeing has been a partner of Avolon since launch and we are proud to continue that partnership as their business grows and they build a world-class aircraft leasing platform.”
“Avolon has a significant and strategic role to play in the aviation finance industry and we welcome them as one of the launch lessors of the 737 MAX. With rising fuel costs, the 737-800 and 737 MAX enable Avolon to offer their customers unsurpassed fuel efficiency today and well into the future."
Further details on the Boeing 737 MAX and Boeing 737-800 Next Generation are available at: