Dublin, Ireland-based leasing company Avolon has revealed an order for 12 Boeing 737-800s at the Farnborough International Airshow 2010.
Valued by Boeing at approximately $921 million at average list prices, the Avolon order was posted to Boeing’s Orders and Deliveries website in December 2009 and attributed to an unidentified customer.
“Avolon’s order is especially significant because it is a brand-new player in the leasing industry, having just launched in May and established offices around the world,” says Jim Albaugh, president and CEO of Boeing Commercial Airplanes. “Avolon’s selection of the 737 is another indicator of the 737’s value to airlines and investors. Their entry into the marketplace is another signal that both the aviation industry and the air transport sector are recovering – and that’s good news for all of us.”
“This order represents a further step towards our stated strategy of developing Avolon as a global leader in aircraft leasing,” says Domhnal Slattery, Avolon’s CEO. “Having our own delivery stream of new aircraft is a natural complement to our sale-and-leaseback and other financing capabilities. At a value of close to $1 billion the order reflects both the scale of our ambition and the strength of our financial backing.”
The 737-800 is the best-selling version of the Next-Generation 737 family. The 737-800 seats between 162 and 189 passengers. Boeing says the 737-800 can fly 235 nautical miles farther and has 5.4 per cent lower fuel consumption per seat while carrying 12 more passengers than its main competitor, the Airbus A320, in a two-class configuration.
Because of this perceived performance differential, the 737-800 is typically more expensive to buy than the A320. The 737-800’s passenger cabin is six inches narrower than the A320’s at its widest point and so passengers have noticeably less shoulder room in the 737-800 than they do in the A320. (The same applies to all members of the 737NG family compared with the corresponding members of the A320 family, since the fuselage widths of all 737NG models are the same and the fuselage widths of all A320 models are identical.)
Headquartered in Ireland, with offices in New York, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon launched in May 2010, announcing it had successfully completed its initial capital raise of $1.4 billion including an equity commitment of $750 million from three leading private equity firms, Cinven, CVC Capital Partners and Oak Hill Capital Partners. Avolon’s objective is to become a leading player in the global aircraft-leasing sector.