Avolon announces commitment to purchase six Boeing 787-9 Dreamliners, valued at US$1.5 billion at current list prices
Avolon, the international aircraft leasing group, and Boeing (NYSE: BA) today announce Avolon's commitment to purchase six 787-9 Dreamliners. Avolon also reconfirms its order for five 737 MAX 9 aircraft, bringing Avolon's total order commitment for 737 MAX aircraft to 20. These commitments bring Avolon's owned, managed and committed fleet to 207 aircraft.
The commitment to purchase six Boeing 787-9 Dreamliners is Avolon's first direct order for widebody aircraft from Boeing and is valued at US$1.5 billion at current list prices.
In 2012 Avolon committed to purchase 10 737 MAX 8s and five 737 MAX 9s, as well as 20 Next-Generation 737-800s with reconfirmation rights for five 737 MAX aircraft. Today Avolon reconfirms its order for five 737 MAX 9 aircraft
- Commitment to purchase six Boeing 787-9 Dreamliners
- The Boeing 787-9 is the most technologically advanced widebody aircraft in service today
- Order is valued at US$1.5 billion at current list prices
- In addition to the 787 order, Avolon reconfirms its commitment to purchase five Boeing 737 MAX 9s, bringing Avolon's total order for 737 MAX aircraft to 20
- The five reconfirmed 737 MAX 9 aircraft are valued at US$ 550 million at current list prices
- The 20 aircraft order for Boeing 737 MAXs is valued at US$2.1 billion at current list prices
Avolon's investment strategy is focused on acquiring a portfolio of young, modern, fuel-efficient narrowbody and widebody commercial aircraft. Maintaining an appropriately sized forward order book of new generation aircraft, coupled with Avolon's sale and leaseback and other financing capabilities, is central to Avolon's full service offering to its customers.
Avolon's owned, managed and committed fleet now stands at 207 aircraft and the average age of Avolon's owned fleet was 2.4 years as at 30 June, 2014.
Avolon announces its first order for six Boeing 787-9 Dreamliner aircraft. The 787-9 is the second member of the super-efficient 787 family. Both the 787-8 and 787-9 aircraft offer up to 20% greater fuel efficiency and 20% fewer emissions than similarly sized aircraft currently in service. The 787-9 is recognized as the most technologically advanced widebody aircraft on the market. This order is consistent with Avolon's objective to play a significant role in financing the next generation of aircraft for its global airline customer base.
Boeing 737 MAX 9
In addition to the 787-9 aircraft order, Avolon has reconfirmed its commitment to purchase five 737 MAX 9 aircraft, valued at US$ 550 million at current list prices. Avolon's order for the 737 MAX family now stands at 20 aircraft.
Dómhnal Slattery, Avolon CEO, commented:
"Our investment strategy is focused on building a portfolio of young, modern and fuel-efficient commercial aircraft. This order for six Boeing 787-9 aircraft, when combined with our ongoing sale and leaseback investments in the 787 family, reflects our commitment to our customers to mhave a product offering built around the latest and most technically advanced aircraft available in the market."
"We are also pleased to reconfirm our commitment to purchase five Boeing 737 MAX 9 aircraft. The 737 has proven itself a hugely popular aircraft with airlines, investors and financiers worldwide. Avolon was one of the first three lessors to order the 737 MAX when we announced our original commitment in July 2012 and we are delighted to increase that commitment now, reflecting our confidence in the asset and our customers' need to operate] the most technologically advanced and fuel-efficient aircraft."
Ray Conner, Boeing Commercial Airplanes President and CEO, commented:
"We are thrilled that Avolon is commiting to order the 787-9 Dreamliner and additional 737 MAXs. This addition to its portfolio reflects Avolon's important role in the leasing industry and the market popularity of both Dreamliner and 737 MAX."