International aircraft leasing company Avolon has announced a commitment to purchase 40 Boeing 737 MAX jets in a $4 billion deal.
The new Boeing jets are expected to arrive between 2027 and 2030 and signals the leasing company and plane manufacturers strong relationship in the aviation industry.
“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, CEO of Avolon.
Avolon delivered the first ever Boeing 737 MAX in 2017 and earlier this year hit another important milestone by providing the 1000th aircraft of this type.
The announcement was made on April 26, 2023, and brings Avolon’s owned, managed and committed fleet to 870 aircraft.
“With strong demand for our new technology orderbook, and delivery slots at a premium, it strengthens and extends our delivery profile with Boeing,” Cronin explained. “This commitment will also support our airline customers who are looking to plan beyond the robust post-Covid traffic recovery and prepare for future growth, while also reducing their carbon emissions.”
Supplying its customers with the 737 MAX reinforces Avolon’s efforts to increase the proportion of new technology fuel-efficient aircraft in its fleet.
The company praised the 737 MAX’s use of the latest CFM International LEAP-1B engines and advanced technology winglets.
Avolon’s average owned fleet age of 6.3 years with an average remaining lease term of 6.9 years.
The company executed 31 lease transactions in the first quarter of 2023 comprising of new aircraft leases, follow-on leases and lease extensions.
In the first three months of the year Avolon also delivered nine new aircraft and transitioned nine aircraft to a total of 13 customers.
