Boeing has announced at the Farnborough International Airshow a commitment by lessor Avolon to purchase 10 737 MAX 8s and 5 737 MAX 9s, as well as 10 737-800s.
According to the manufacturer, the commitment has a list-price value of $2.3 billion and also includes reconfirmation rights for five more Boeing 737 MAX jets.
Boeing says it looks forward to working with the Dublin-based lessor to finalize the details of the agreement, at which time Avolon’s commitment will be posted to the Boeing Orders & Deliveries website as a firm order.
The deal is the fourth order or commitment by leasing companies for 737 MAX jets to be announced at the Farnborough International Airshow 2012. Other leasing companies announcing commitments at the show have so far included Air Lease Corporation, GECAS and Kuwait-based ALAFCO.
“Boeing has shared a partnership with Avolon from the beginning,” says Ray Conner, president and CEO of Boeing Commercial Airplanes. “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.”
“Today’s announcement once again reflects both the scale of our ambition and the strength of our financial backing,” says Domhnal Slattery, CEO of Avolon. “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.”
Once this commitment is finalized, Avolon’s backlog will grow to 36 737s.